The CAP towards 2020

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1 The CAP towards 2020 Legal proposals DG Agriculture and Rural Development European Commission C Olof S.

2 How will the CAP be financed? Commission proposals on Multi-Annual Financial Framework for to maintain CAP spending at 2013 levels in nominal terms in billion EUR - Pillar I - Direct payments and market-related expenditure - Pillar II - Rural development Total Pillar I and II - Food safety - Most deprived persons - Reserve for crises in the agricultural sector - European Globalisation Fund - Research and innovation on food security, the bio-economy and sustainable agriculture Total additional amounts Total proposed amounts for the period Current prices Up to Up to 17.1 Up to Source: Commission Communication A budget for Europe 2020 COM(2011) 500 final, part II. 2

3 and how will the CAP address them? Commission Communication The CAP towards 2020 Legal proposals Challenges Policy objectives Reform objectives Europe 2020 Economic Environmental Viable food production Sustainable management of natural resources and climate action Enhanced competitiveness Improved sustainability Territorial Balanced territorial development Greater effectiveness Simplification 3

4 New design of direct payments Degressivity and Capping (all layers except Green Payment) Cross compliance Streamlined Climate change Coupled support Wide range of sectors Up to 5% or 10% of DP envelope, to be decided by MS Up to 2% of DP envelope < 40 years Green Payment Crop diversification 30% of the DP envelope Permanent grassland Ecological focus area National or regional flat rate per eligible hectare Regions and criteria to be chosen by MS Young Farmer Scheme Basic Payment Scheme Natural constraint support For areas with natural constraints Up to 5% of the DP envelope For 5 years Commencing activity New entitlements in 2014 Definition of agricultural activity Definition of active farmer Small Farmer Scheme Simplification of claims and controls Lump sum payment to be determined by MS under conditions Entrance in 2014 Up to 10% of the DP envelope OR 4

5 Rural development in a new framework CAP/EU policy objectives Europe 2020 Viable food production Sustainable management of natural resources Balanced territorial development Simplification Six priorities: 1. Foster knowledge transfer and innovation in agriculture and forestry 2. Enhance competitiveness and farm viability 3. Promote food chain organization and risk management 4. Restore, preserve and enhance ecosystems dependent on agriculture and forestry 5. Promote resource efficiency and support the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors 6. Promote social inclusion, poverty reduction and economic development in rural areas 20 measures (without axis): Key changes in current measures: Knowledge transfer and information actions Investments in physical assets Farm and business development Setting up of producer groups Agri-environment-climate Organic farming Payments to areas facing natural or other specific constraints Co-operation Natura 2000 and WFD Leader New measures: Risk management 5

6 The future CAP at a glance Enhanced competitiveness Innovation, knowledge transfer, risk management, cooperation in the food supply chain Improved sustainability Green payment, enhanced cross compliance, resource efficiency, research and innovation Greater effectiveness Improved targeting, redistribution, Common Strategic Framework, simplification 6

7 For further information The CAP after Commission Communication The CAP towards index_en.htm Impact assessment Legal proposals 7