CAP reform deal settles European farm policy

The way has been paved for a new European farm policy, after the three main EU institutions – the European Parliament, the Council of Ministers and the European Commission – struck a deal last night.

The new agreement on the Common Agricultural Policy (CAP) will govern agricultural policy and payments to farmers in the 27 EU member states from 2014 to 2020.

Key changes include the introduction of so-called ‘greening’ measures – which will link some payments to environmentally friendly farming methods and see the EU invest €100bn (£85bn) to help farmers meet climate change and biodiversity challenges – and new rules on direct payments to farmers, including specific support for young farmers and those farming in “less-favoured areas”.

“This agreement will lead to far-reaching changes: making direct payments fairer and greener, strengthening the position of farmers within the food production chain, and making the CAP more efficient and more transparent”

Dacian Ciolos, commissioner

“This agreement will lead to far-reaching changes: making direct payments fairer and greener, strengthening the position of farmers within the food production chain, and making the CAP more efficient and more transparent,” said the commissioner for agriculture and rural development Dacian Ciolos.

European farmers association Copa-Cogeca welcomed the news a deal had been struck, ending uncertainty about the future of the CAP, but warned the “devil [will be] in the detail” and in how the agreement would be implemented.

The UK government’s plans for implementing the CAP have already been sharply criticised by the National Farmers’ Union (NFU), which claims Defra’s plans will penalise English farmers and make it more difficult for them to produce food.

“Defra can choose to cut English farmers’ payments by up to 15% on top of all of the other budget cuts we know are coming,” said NFU president Peter Kendall.

“They also have powers to opt out of the standard European rules on greening and implement a certification scheme which demands higher environmental standards of our farmers. The UK government is alone in Europe by thinking that doggedly following the free-market ideology of cutting payments and ratcheting up environmental standards will help our farmers compete and produce more food.”

Sugar market

Last night’s deal also included an agreement to phase out sugar quotas by 2017 instead of 2016, as originally planned. CIUS (European Sugar Users), which represents sugar-using food and drinks companies, welcomed the end of sugar quotas, saying it would allow the European supply chain to work in a more “market-oriented” environment.

President Robert Guichard added: “This is an important step in achieving supply security, which is a prerequisite for economic growth. It will also allow the EU sugar sector to play an increasingly important role on the world market.”

But Tate & Lyle said the deal would penalise sugar cane refiners, as it would only liberalise the market for sugar beet, not sugar cane. “We now face a future where our beet competitors can look forward with certainty to being released from regulation,” said Tate & Lyle sugars president, Ian Bacon.

“In contrast, cane refiners continue to be at the mercy of decisions taken by European Commission officials. A lot now depends on the Commission using their powers to treat cane fairly with beet. If not, then European consumers need to be very worried.”

Commenting on the CAP negotiations, Defra environment secretary Owen Paterson said: “Sugar beet quotas are bad for business and bad for consumers, driving up the wholesale price of sugar by 35% and adding 1% on our food bills. We have battled successfully and secured an agreement that beet quotas will end in 2017, despite the efforts of many to push this back to 2020. The case for better access to cane sugar is still being negotiated thanks to our efforts.”