Department for Economic Affairs DEA Federal Office for Agriculture FOA Swiss agriculture, agricultural policy and biodiversity BioBio, Engelberg, 21 June 2012 Dominique Kohli, Assistant Director of the Federal Office for Agriculture 1
Contents 1. Switzerland and swiss agriculture 2. Agricultural policy and biodiversity 1. Strategies and objectives 2. Current measures 3. Effects of agriculture on biodiversity 3. Future developments 4. Conclusions 2
Switzerland: at the centre of Europe Total area: 41 285 sq. km North-South: 220 km East-West: 350 km Population: 7.8 million 4 languages 3
Switzerland is a diverse country Jura Plains Alps Mountain areas: 2/3 of the Swiss surface area 1/4 of the population 4
with a diverse agriculture: Crops, 5
animal production 6
summer pastures in the alps 7
Vineyards 8
...battling for space 9
A country visually shaped by agriculture Total area 4 128 500 ha Unproductive area 21% Agricultural area 24% Built-up area 7% Water 4% Forest 31% Alpine summer pastures 13% Source: BFS 10
A small share in gross domestic product Gross domestic product 2009 505.5 bn CHF Services sector 72.0% Primary sector 1.2% Forestry, horticulture, fisheries 1.9 bn CHF Secondary sector 26.8% Agriculture 4.1 bn CHF Source: BFS 11
Production Production value 2009 (%) Milk Cattle Pigs Poultry, eggs Other animal products Fruit, vegetables Grapes, wine Cereals Potatoes, sugar beet Other plant products Agricultural services Non-agricultural services 1% 4% 9% 8% 6% 4% 4% 6% 4% 12% 12% Animal Plant Other Total 30% 5,0 bn CHF 2,8 bn CHF 1,0 bn CHF 8,8 bn CHF 0 5 10 15 20 25 30 Source: BFS 12
Agricultural policy reform: A step-by-step approach Step I Decoupling of support (direct payments) Price reductions Incentives for specific ecological services (e.g. biodiversity) Tariffication of market access instruments (WTO) Focus: decoupling and environment Step II AP 2002 Liberalisation of domestic markets Competitiveness Abolition of market intervention systems Cross-compliance for all direct payments Focus: market orientation Step III AP 2007 Abolishment of milk quota system Further steps toward more competitiveness Strengthening of rural areas and social accompanying measures Focus: competitiveness and social sustainability 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 13
Agricultural policy 2011: Step IV Abolition of export subsidies Strong reduction in market support Tariff cuts for cereals and animal feed Added value strategy (GI, regional initiatives, mountain, diversification, swissness) Relaxation of land law Focus: less protection, «competition all along the food chain» 2008 2009 2010 2011 14
Sustainable Agriculture in the Swiss Constitution (since 1996) Art. 104 1 The Confederation shall ensure that agriculture contributes substantially by way of a sustainable and market-oriented production: a. to the secure provision of the population with food; b. to the conservation of natural resources and the upkeep of rural landscape; c. to the decentralized settlement of the country. Multifunctionality! 15
Strategies for agriculture & biodiversity 2025 Strategy for agriculture and the food system National strategy on biodiversity Environmental objectives for agriculture 16
Biodiversity objectives for agriculture Environmental objectives for agriculture (UZL) Biodiversity objectives for agriculture 1. Agriculture is to conserve and favour indigenous species and habitats. 2. Agriculture is to conserve et favour sustainable utilisation of varieties and races. 3. Agricultural production is to preserve ecosystem services provided by biodiversity. Objectives of 2014-2017 agricultural policy for biodiversity and agriculture 65 000 ha of surfaces for the promotion of biodiversity (SPB) on the plateau 50 % of SPBs in networks, 40 % of SPBs with quality 17
Agricultural policy instruments Market measures Tariffs, promotional measures, milk, meat, crops Direct payments General, ecological Basic improvements Structural measures: Investment aids, social measures, animal and plant breeding, research, extension 18
Existing direct payments Three types: General direct payments Compensate farmers for their public services Direct payments for hills and mountain areas Ecological direct payments Compensate additional ecological services (incl. organic) and animal friendly livestock holding All direct payments are contingent on a set of ecological standards ( cross-compliance ) 19
Cross-compliance Elements animal welfare standards balanced use of fertilizers share of ecological compensation areas (7%) crop-rotation soil protection selected and targeted application of pesticides Direct payments: The most important policy tool: 2.6 bn CHF (75%) 64% go to the hills and mountains 14% go to organic farming 20
Existing ecological direct payments Ecological Compensation Areas (ECA) Protect and restore ecosystems close to their natural state ECA: 7% of the agricultural surface ECA are semi-natural habitats: Extensive and less intensive meadows No fertilizer and no pesticides are allowed Grass is mown at specific times allowing flowers to turn into seeds Hedges Flowering fallow fields Fruit trees... 21
Regional Promotion of Quality and Interlinking of Ecological Compensation Areas Minimum standards by central government Voluntary basis Co-financing: 80% central government, 20% local 22
Interlinking of Ecological Compensation Areas Regional network plan Aims with regard to flora and fauna Mesures (in relation to the specific needs of the species ECA chosen for economic reasons: ECA chosen according to the need of biodiversity: 23 Jenny et al. 2003
Ecological situation Ecological services Cross compliance Organic farms Eligible ecological compensation areas 98% of UAA 11% of UAA 12% of UAA Reduction in environmental loads N-surplus -25% since 1985 P-surplus - 65% since1990/92 Pesticides (active substance) -35% since 1990 UAA: Utilized Agricultural Area, LU: Livestock Units 24
Contributions for cultivated landscape (e.g. maintenance of open landscape) Contributions for ensuring food supply (e.g. maintenance of production capacity) Contributions for biodiversity (e.g. maintenance & promotion of species diversity) Contributions for landscape quality (maintenance and development of landscape diversity) Contributions for production systems (e.g. organic farming, promotion of particularly animal friendly housing) Agriculture Policy 2014-2017 (AP 14-17) New direct payment system: Focus on targeting! Art. 104 Federal Constitution Contributions to adaptation (ensuring social development) 7 objectives 7 instruments! More efficient resource use thanks to decoupling, targeting and tailoring! Increased incentives where targets are not reached yet! Proof of Ecological Performance PEP & Contributions to enhance resource efficiency Reduction of wrong incentives through decoupling of general animal- based payments! Structural and social entitlement criteria 25
Conclusions Swiss agricultural policy reconciles the objectives of productive, sustainable agriculture with the necessities of appropriate management of natural resources After 20 years of sustainable agricultural policy: overall result partly positive, but some gaps to be filled From 2014: new system of direct payments with e.g. introduction of biodiversity programme for alpine pastures and landscape quality programme Monitoring: set of agro-environmental indicators under development (national, regional, farms) 26
We are grateful for your interest and hope you enjoy your stay in Switzerland 27