Ag Policy Blog

The battle over farm policy is reaching a fever pitch ahead of a sweeping debate next week on legislation that could reform farm subsidies, shift money to rural development and increase acreage in set aside programs.

No, this isn't about the farm bill. That debate apparently won't occur until the pond water starts flowing again.

Instead, the fight is in Strasbourg, France, where the EU Parliament could vote next week to overhaul the Common Agricultural Policy, the European farm bill. An article today on the EuroPolitics website cited that members of the parliament, known as MEPs, are under huge pressure leading up to the vote.

With what is apparently an open floor debate, the EuroPolitics piece cites there are about 300 amendments filed on the CAP overhaul. Environmental groups are pushing back on a decision by the EU Agriculture Committee to scrap some environmental rules known as cross-compliance. There also are allegations that the Ag Committee's work could allow farmers to "double dip" on payments for the same environmental practices.

There is conflict between the EU Commission, the executive branch, and the EU Agriculture Committee, over changes the committee made to "greening policies." The Commission views some of the committee's changes as watering down environmental practices on farms. The Commission still wants at least 30% of payments pegged to specific conservation measures. The committee bill gives more flexibility to countries to determine whether those measures are needed.

The Commission also wants to keep acreage set asides at 7% of land. Currently, 10% of land is set aside. Farm groups and food processors oppose the set aside proposal.

I got curious about the EU vote after the European farm group Copa-Cogeca emailed several news releases over the past couple of days offering its criticisms of some of the policy changes. Copa-Cogeca made it clear the group opposes shifting funds away from direct farm subsidies to rural development programs in different countries. In Europe, the lingo is described as shifting money from Pillar I to Pillar II.

Copa-Cogeca Secretary-General Pekka Pesonen stated,

"The first pillar of the CAP will be more important than ever if the EU is to ensure food security, stability and sustainability. We are also concerned that member states will be able to give very different levels of funds to different measures which could cause serious distortions of competition between member states. We meanwhile welcome the Agriculture Committee move to reinforce farmers' position in the food chain by strengthening producer organisations and cooperatives to enable farmers to get a better return from the market and urge the full set to MEPs to support this.

Copa-Cogeca also implies that the EU is the only region forcing cuts upon its farmers. "We have serious concerns that the EU will be the only state that will be cutting back on its agricultural potential at a time when there are major worries about food security. World food demand is expected to rise by 70% by 2050 and market volatility is on the increase. "

There is debate between environmentalists and farmers over annual payment limits. The EU Ag Committee's plan would set a 300,000 Euro ceiling, or about $390,000. At least on French MEP said that would only affect about 0.12% of farmers.

Copa-Cogeca also wants to keep the current quotas on EU sugar production at the same levels until at least 2020. There is intensive lobbying by the food industry to raise the quotas because of the effects on sugar prices.\

http://www.europolitics.info/…

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