DairyCo

Draft proposals for CAP after 2013

Published 12 October 11

The European Commission has presented today a draft reform of the Common Agricultural Policy (CAP) for the period after 2013. This draft aims to strengthen the competitiveness, sustainability and permanence of agriculture throughout the EU in order to secure for European citizens a healthy and high-quality source of food, preserve the environment and develop rural areas.

There are ten key points to the reform, however three of these key points that are of particular interest from a dairy perspective are:

• Green payments for long-term productivity and for preserving ecosystems

In order to reinforce the ecological durability of the agricultural sector and enhance the efforts of farmers, the Commission is proposing to dedicate 30% of direct payments to practices which enable optimal use of natural resources. Those practices, which are easy to implement and are ecologically efficient, are: crop diversification, maintenance of permanent pasture, preservation of ecological reserves and landscapes.

•  A more balanced food chain

Agriculture is at the base of the food chain, but it is highly fragmented and unstructured. To strengthen the position of farmers, the Commission proposes to support producer organisations and inter-branch organisations and to develop short circuits between producers and consumers (without too many intermediaries). Furthermore, the sugar quotas, which have lost their relevance, will not be extended beyond 2015.

• Aid for young farmers setting up

Two thirds of farmers are over 55. In order to support job creation and encourage the younger generation to enter the agricultural sector, the Commission is proposing to create new start-up assistance accessible to farmers under 40 during the first five years of their project.

More information on the proposals will also be included in next Thursday's (20^th October) Dairy Market Update.