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The position of French republic on future of the cap FINAL PROJECT

Szent istván university , gödöll ő, Hungary Erasmus IP Safeguarding and promoting interests in the agro-food industry Experience and perspectives in europe safeproint. The position of French republic on future of the cap FINAL PROJECT. 2011. 19 June – 2 July. Michal FILO

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The position of French republic on future of the cap FINAL PROJECT

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  1. Szentistvánuniversity, gödöllő, Hungary Erasmus IP Safeguarding and promotinginterestsintheagro-foodindustry Experience and perspectivesineurope safeproint The position of French republic on future of the capFINAL PROJECT 2011 19 June – 2 July Michal FILO Bartłomiej SPYRKA Andrea VIGH

  2. Agriculture in france • Agriculturalland (2008): 53.39 % • % of GDP (2009): 1.74 % • Employment in agriculture (2008): 3.00 % oftotalemployment • Agriculturalland (2008): 292420.60 km2 • Arableland (2008): 33.00 % • Tractors (2005): 1 176 425 Figure 1: Changes in farmers’ average standard of living compared with the general average in France (= 100 %)

  3. Agriculture Continuation Figure 2: Employment in agricultureas % oftotalemployment Shaded areas indicate US recessions

  4. Agriculture Figure 3: Importanceofagriculture in theeconomy Continuation

  5. Agriculture Cropproduction Continuation Total vineyeardarrea in 1 000 ha, 2009 EU-27: 3 660 France: 854

  6. Agriculture Cropproduction Continuation Figure 4: Share of main crop production betweenMemberStates, 2009

  7. Agriculture animalproduction Continuation Figure 5: Cows’ milk collected, % EU-27, 2009 Collection of cows’ milk in 1 000 tonnes: EU-27: 133 370 France: 22 839

  8. Current cap Figure4: European expenditures by member state: Pillar I and Pillar II, Relative shares, 2007

  9. Problems in Agriculture

  10. Problems in Agriculture Continuation

  11. Factors influencing the positionof france on futureofthe cap • France is the main EU producer of arable crops and beef which have historically received the greatest share of direct payments(around 21 %).  As the second largest dairy producer in the EU, France has also historically been in receipt of large amounts of funds through market intervention measures. • Franceisa leading exporter of many commodities. Figure5: Total CAP spending in 2006: 50 BN € • French position on the CAP is determined by its position as a net beneficiary of European subsidies.  As a result French officials tend to be quite defensive of CAP expenditure, pointing out that • the CAP is the only policy entirely delegated to the EU level, • at around 1% of all public expenditure in Europe, CAP expenditure is comparable, for example, with the USA.

  12. Factors influencing the positionof france on future of the cap • The importance of agriculture to the wider agri-food sector also needs to be considered. Downstreamfood industries benefit from the CAP due to the low purchase price of commodities that occurs when production efforts are maintained. • The structure of French farms is probably one of the most difficult challenges to face any French Minister of Agriculture. • The variation and instability of market prices (e.g. current crop prices which are below the cost of production) is also considered important and is the reason why France insisted on the inclusion of provisions for risk management tools in the health check agreement. CONTINUATION

  13. future of the cap • StrongCAP in the future. • A post-2013 CAP should retain the same overall shape at EU level as at the moment.  Directpayments and market interventions through Pillar 1 and rural development measures through Pillar 2. • goals for the future of European agricultural policy up to and beyond 2013: • The food security of the EU. • Contribution to the world food balance. • Preserve the balance of rural areas. • Contribute to the fight against climate change and to the improvement of the environment. • A greater proportion of the total CAP budget forgrass-based livestock producers.

  14. future of the cap Continuation ThepositionofFrance on thefutureof CAP canbecharacterizedasfollows: • greater market orientation in the CAPcountervailing measures are needed to buffer devastating effects of growing price volatility and market crises • a final decision on all questions relating to finances will be made when decisions are made on all policies and the entire EU financial framework • the two pillar structure of the CAP should be maintained and no national co-financing should be required of pillar one expenditure • oncethe budgets of the two pillars have been decided, there should be no need for modulation of funds between the pillars • EU standards must be met by all imported products • more transparency and more market power for the producer • decoupled payments have to remain central in any future system • member states should investigate, on a voluntary basis, insurance and mutual funds, as a method for stabilizing farm incomes over time

  15. Thank you for your kind attention . . .

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