SUMMARY REPORT of the 107th meeting of the Management Committee for Direct Payments 21 September 2010

Transcription

1 BRUXELLES, 24 SEPTEMBER 2010 SUMMARY REPORT of the 107th meeting of the Management Committee for Direct Payments 21 September 2010 Chairman: Mr Klaus Dieter Borchardt. All delegations were present except Malta, represented by Italy. 1. Advance payments in Belgium: Exchange of views and vote on a Draft Decision on advance payments under the single payment scheme, the protein crop premium, the specific support and the beef and veal payments in Belgium - DS/2010/15 Due to the unfavourable weather conditions in Belgium (a harsh winter, a late spring followed by drought and high temperatures) and the effects of the financial crisis which have continued in 2010, many Belgian farmers are now confronted with liquidity problems. The opinion of the Committee was asked on a draft Decision authorising Belgium to pay advances to farmers in regions where the pasture represents an important part of the total agricultural areas, of up to 50% of the single payment scheme and of the specific support which is granted as a premium for grassland and of up to 50% of the protein crop premium as of 16 October Additionally, Belgium is authorised to increase the payment of advances up to 80% of the suckler cow premium and the slaughter premium for calves. 2. Advance payments in France: Exchange of views and vote on a draft Decision on advance payments under the single payment scheme and the specific support in France - DS/2010/16 Farmers in France faced serious financial and cash flow difficulties. The income of farmers has continued to fall to an important extent, in certain sectors even by 50%, all of which has led to serious liquidity problems. The opinion of the Committee was asked on a draft Decision authorising France to pay advances of up to 50% of the single payment scheme and of the specific support which is granted as a premium for sheep and goats as of 16 October Advance payments in Greece: Exchange of views and vote on a draft Decision on advance payments under the single payment scheme in Greece - DS/2010/17

2 Farmers in Greece faced serious financial and cash flow difficulties. The global financial crisis has particularly affected Greece and, consequently, the agricultural sector. Furthermore, farmers in Greece are subject to a limited access to credits. The opinion of the Committee was asked on a draft Decision authorising Greece to pay advances to farmers of up to 50% of the single payment scheme as of 16 October Advance payments in Hungary: Exchange of views and vote on a draft Decision on advance payments under the single area payment scheme and the specific support in Hungary - DS/2010/18 Farmers in Hungary faced serious financial and cash flow difficulties. The financial crisis and the following decrease in the income have resulted in liquidity problems and decreased credit rating for the farmers. Stricter conditions on credits have caused a reduction in credits given to the agricultural sector. In addition, damages resulting from natural disasters and adverse weather conditions such as storm, rainfalls with very low temperatures, hail, inland water and floods, have severely affected farmers. In the areas covered by floods there are also losses in the animal stocks. The opinion of the Committee was asked on a draft Decision authorising Hungary to pay advances to farmers of up to 50% of the single area payment scheme and the specific support which is granted to the dairy sector as of 16 October Advance payments in Ireland: Exchange of views and vote on a draft Decision on advance payments under the single payment scheme in Ireland - DS/2010/19 Farmers in Ireland faced serious financial and cash flow difficulties. The average family farm income has shown an important decrease the last two years. The financial crisis has led to general restrictions on credits and to a situation where the net worth of many farm businesses has been reduced or completely eroded, rendering more difficult for farmers the access to credits. In addition to that, adverse weather conditions with, in 2009, the wettest autumn recorded in the last hundred years followed by the coldest winter in the last 50 years, have had a negative impact on the farmers income by increasing input costs and reducing output. The opinion of the Committee was asked on a draft Decision authorising Ireland to pay advances to farmers of up to 50% of the single payment scheme as of 16 October Advance payments in Italy: Exchange of views and vote on a draft Decision on advance payments under the single payment scheme in Italy - DS/2010/20

3 Farmers in Italy faced serious financial and cash flow difficulties. The effects of the financial crisis have continued in The overall value of the agricultural sector has decreased due to contraction of production and decreases in production prices which are not accompanied by decreases in productions costs. What's more, in April 2010 production prices have decreased by 0,6% compared to the previous month, and by 4,5% compared to In combination with these factors, insolvency amongst farmers has increased sharply. In addition to all that, adverse weather conditions such as flood and low temperatures have severely affected farmers. The opinion of the Committee was asked on a draft Decision authorising Italy to pay advances of up to 50% of the single payment scheme as of 16 October Advance payments in Latvia: Exchange of views and vote on a draft Decision on advance payments under the single area payment scheme in Latvia - DS/2010/21-rev.1 Farmers in Latvia face serious financial and cash flow difficulties. The effects of the financial crisis have continued in 2010 and the farmers experience restrictions on credits which are limiting their economic and agricultural activity. Increased producer prices and high costs of production resources do not provide sufficient grounds to increase the farm incomes and to cover losses generated during the last two years. The warm weather in the beginning of December 2009 and the following deep snow cover on unfrozen soil have, in addition, caused problems with pests, diseases and losses of winter crops, generating additional costs for farmers. The opinion of the Committee was asked on a draft Decision authorising Latvia to pay advances of up to 50% of the single area payment scheme and the specific support which is granted to the dairy sector as of 16 October Advance payments in Lithuania: Exchange of views and vote on a draft Decision on advance payments under the single area payment scheme in Lithuania - DS/2010/22 Farmers in Lithuania faced serious financial and cash flow difficulties. The harsh winter, with adverse climate conditions with considerable temperature fluctuations and strong frosts at the time when the snow layer was very thin, affected 50 to 60% of the entire winter crop areas. On a national level, around 23% of the winter cereals and 55% of the winter rapeseed was lost. Consequently, the farmers have had to replace the perished winter crops with spring crops. Not only the yield from the spring crops is about 25% lower than the yield from the winter crops, but also the farmers had to buy new seed, frequently by using bank loans and credits for financing. The opinion of the Committee was asked on a draft Decision authorising Lithuania to pay advances of up to 50% of the single area payment scheme as of 16 October 2010.

4 9. Advance payments in Romania: Exchange of views and vote on a draft Decision on advance payments under the single area payment scheme in Romania - DS/2010/23 Farmers in Romania faced serious financial and cash flow difficulties. The effects of the financial crisis have continued in 2010 with a fall in GDP of 2,5% during the first trimester compared to the same period the year before. The agricultural sector is specifically affected by the crisis since it forms an important part of the Romanian GDP and that almost 30% of the population is active in that sector. What is more it faces restricted credits together with high interest rates and requests for guarantees which, due to the falling value of land, are difficult to fulfil. In addition, severe floods have caused damages not only to land, but also to the livestock sector, with losses of feed shelters and animals. The opinion of the Committee was asked on a draft Decision authorising Romania to pay advances of up to 50% of the single area payment scheme as of 16 October Advance payments in Spain: Exchange of views and vote on a draft Decision on advance payments under the single payment scheme in Spain - DS/2010/24 Farmers in Spain faced serious financial and cash flow difficulties. The financial crisis has led to general restrictions on credits and has in particular caused a sharp reduction in credits given to the agricultural sector. In addition, damages resulting from natural disasters and adverse weather conditions, such as fires, storms and floods, have severely affected farmers. The opinion of the Committee was asked on a draft Decision authorising Spain to pay advances to farmers of up to 50% of the single payment scheme as of 16 October Any other business Italy informed the committee that they will make a presentation proposing a reduction of the minimum threshold for on-the-spot controls from 5% to 1% at the LPIS workshop in Copenhagen of 20-22/09/2010. Italy would like to discuss the same presentation at the next meeting of the Management Committee. The Commission informed the delegates that Luxembourg submitted in September a request for authorising advanced payments. Following a first assessment by DG AGRI, Luxembourg is expected to submit further justification on the exceptional feature and the severity of the financial difficulties faced by the farmers. The Commission informed the delegates that a proposal to amend Council Regulation (EC) No 73/2009 will be adopted by the College at the end of September. The proposal aims at aligning the Commission implementing powers to the differentiation between delegated and implementing powers of the Commission introduced by Articles 290 and

5 291 of the Treaty on the Functioning of the European Union (TFUE). Additionally, some elements of simplification resulting from the "39 proposals" are introduced. Finally, the proposal intends to remedy to a legal vacuum as regards the application of Article 28(2) to certain aids under Article 68. The Commission presented to the delegates the new desk officers and the up-dated distribution of tasks within Unit D.1. of DG AGRI. Time schedule for next meetings of DPMC: 21 October (afternoon only); 18 November and 16 December Klaus Dieter BORCHARDT Director (Signed)

6 MANAGEMENT COMMITTEE FOR DIRECT PAYMENTS DATE 21SEPTEMBER 2010 MEMBER STATES BE ORGANISATION VLAAMSE OVERHEID DEPARTMENT LANDBOUW EN VISSERIJ - SPW, DG ARNE, DIRECTION DE LA POLITIQUE AGRICOLE, MIN. VL. GEMENSCHAP NUMBER OF PARTICIPANTS 3 BG PERMANENT REPRESENTATION OF BG TO EU 1 CZ MINISTRY OF AGRICULTURE (MZE) STATE AGRICULTURAL INTERVENTION FUND (SZIF) 2 DK DIV. FOR FODEVARE ERHVERV 1 DE BMELV 1 EE MINISTRY OF AGRICULTURE MOA 1 IE DEPARTMENT OF AGRICULTURE AND FOOD 1 EL R.P. GRÈCE 1 ES MARM, FEGA-MARM, M. MEDIO AMBIENTE 5 SGACORDI, MARM, REGION DE MURCIA FR MINISTERE DE L'AGRICULTURE ET DE LA PECHE 2 IT MIPAF, MINISTERO AGRICOLTURA, AGEA BRUXELLES 3 CY CYPRUS, DEPARTMENT OF AGRICULTURE 1 LT NPA OF LITHUANIA 1 LV MOA 1 LU SERVICE D ECONOMIE RURALE (MINISTERE DE L AGRICULTURE) 1 HU MT MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT, BUDAPEST, MARD BUDAPEST 2 ABSENT REPRESENTED BY ITALY NL MINISTRY OF AGRICULTURE - IDEM 2 AT BMLFUW 1 PL MARD WARSAW - IDEM 2 PT IFAP 1

7 RO MINISTRY OF AGRICULTURE, PAYING AGENCY 2 SI MAFF 1 SK PERM.REP. OF THE SK 1 FI MINISTRY OF AGRICULTURE AND FORESTRY (MAF) MAVI (FINNISH PAYING AGENCY) 2 SE UK DG AGRI SWEDISH BOARD OF AGRICULTURE, SWEDISH MINISTRY OF AGRICULTURE DEFRA (DEPARTMENT FOR ENVIRONMENT FOOD AND RURAL AFFAIRS) 1 CHAIRMAN, REPRESENTATIVES OF UNITS D1, AND I1 1*