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European Commission: Enhancements to CAP Program

Learn about The New Common Agricultural Policy (CAP) with more targeted options & new elements such as Active Farmer Minimum Agricultural Activity, Greening, Producer Organizations, Risk Management, Knowledge & Innovation, Direct Payments, Common Market Organization, and Rural Development.

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European Commission: Enhancements to CAP Program

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  1. Cofinanced by the European Commission

  2. THE NEW CAP • From January 2015 • More targeted and adaptable than ever • Large choice of optional schemes and measures • Transfers between pillars

  3. Some important new elements:

  4. Active Farmer Minimum agricultural activity: precondition for direct payments (to be defined by each Member State) So excluded: • Landowners not actively involved in farming • Airports • Golf clubs, etc.

  5. Greening Reward farmers for public goods provided to society: • Maintaining landscapes and biodiversity • Climate change mitigation • Food security How? • New “green” payment • Compulsory cross–compliance • Agri-environment-climate & other rural development measures

  6. Producer Organisations • Strengtheningof competences: • All sectors • Collective bargaining (milk, beef meat , olive oil, cereals, arable crops) • Supply contracts • Temporary collective measures • Cooperation support (rural development)

  7. Risk Management • Crisis Reserve (400 million €/year) • Temporary collective measures (CMO) • Risk management tools (rural development) • Extended support for insurance and mutual funds • New income stabilisation tool

  8. Knowledge & innovation • Extended Farm Advisory System • Training, business development • Green payments • Water Framework and Pesticides directives • New EIP AGRI -European Innovation Partnership for Agricultural Productivity and Sustainability • Increased support to Knowledge transfer and Innovation (rural development)

  9. Direct Payments

  10. Direct Payments Compulsoryschemes for all MemberStates

  11. Direct Payments Basic Payment • Precondition for all other schemes • Subject to cross-compliance • Simplified list of requirements • Water Framework directive • Sustainable Use of Pesticides directive

  12. Direct Payments Green Payment • Compulsory for all farmers • 3 compulsory agricultural practices: • Maintenance of permanent grassland • Ecological focus area • Crop diversification • Ceiling: up to 30% of national envelope

  13. Direct Payments Young Farmers • New Direct Payment • Farmers up to 40 setting up for the 1st time • Shared support with rural development (start–up aid)

  14. Direct Payments Optional Schemes for Member States

  15. Optional Direct Payments Areas of Natural Constraints • New Direct Payment • Mountain Areas (or equivalent) to be defined by each Member State • Ceiling: up to 5% of national envelope • Compatible with rural development support

  16. OptionalDirect Payments Coupled Support • Only vulnerable crops • Important crops for economic, social or environmental reasons • Objective: maintain current production levels

  17. OptionalDirect Payments Redistributive Payment • Targeted support to small and medium farms • First 30 hectares / or national average size • Maximum 65% of national average payment • Ceiling: 30% of national envelope

  18. Common Market Organisation • New safeguard clauses • Emergency measures • Crisis Reserve: 400 mill.€/year deducted from direct payments– returned if unused

  19. Common Market Organisation • End of production restrictions • Vine planting: authorisations (+ 1% yearly)

  20. Common Market Organisation • Milk package: collective bargaining  supply contracts inter-branch organisations  temporary collectives measures • now also possible for: • beef meat • olive oil • cereals and other arable crops • Producer &Inter–branch Organisations: extended to all sectors

  21. Common Market Organisation • SchoolFruit scheme: • 150 million €/year • SchoolMilkschemealso extended

  22. Rural Development • “Greening”: Minimum 30% of RD budget for ‘agri–environment-climate’ and other measures • Minimum 5% of RD budget for LEADER. Complementarity with other European Structural Funds • Budget transfer possible between 1st & 2nd pillars

  23. Rural Development 6 priorities

  24. Rural Development • Innovation & knowledge transfer • Farm Advisory Services • EIP AGRI • Knowledge transfer measure • Young farmers, Small farmers • Start–up aid • Investments

  25. Rural Development • Food chain organisation • Support for setting–up producer groups • Cooperation • Risk Management Tools • Grants for insurances, mutual funds • Income stabilisation tool • Quality and competitiveness • Participation in quality schemes • Investments, training, promotion, innovation…

  26. The list of tools is long. It’s up to mountain rural actors to make the most out of these opportunities!

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