Common agricultural policy 2014 – 2020 Impacts on horticulture

1. Common agricultural policy 2014 – 2020 Impacts on horticulture Sotiris Koutsomitros Agricultural-Engineer MSc Environmental Engineer MSc Directorate of Agricultural Policy Min. Rural Development & Food Sotiris Koutsomitros

2. Contents • Status Quo • The configuration of the CAP for the next period (2015-2020) • Direct Payments as a safety net • Focusing on rural development • Effects on horticulture Sotiris Koutsomitros

4. Agricultural income index exercise

6. Fruit & vegetables

8. Direct Payments : Status Quo Sotiris Koutsomitros

9. Convergence in the EU

10. Legal texts • Direct Payments • Rural development • Common market organisation • Horizontal Regulation (common obligations for all regulations: cross-compliance, IACS, Advice, penalties and sanctions) Sotiris Koutsomitros

11. or New Architecture for Direct Payments Redistributive Payment Coupled Payments Natural Constraints areas • Up to 8% or 10% • Up to 5% Small Farmers • Simplify applications and controls • up to 1250 €/year • direct entry in 2015 • Greece: 350.000 farmers (50%) Young Farmers • For 5 years from the start of activity • Up to 2% • < 40 years • Cross Compliance Greening • Crop rotation (>10Ha) • permanent pasture • eco focus Area (>15Ha) • 30% either by region or by the national ceiling Basic Payment • New rights in 2015 • Minimum agricultural activity • National or regional flat rate per hectare • Regions according to objective criteria Active Farmer

12. Payments On the field Sotiris Koutsomitros

13. Active farmer • Non-agricultural activities are not the main economic activities of the company (direct payments at least 5% of total income or agricultural income at least 1/3 of total income) • Observes the minimum activity (fixed by the MEMBER STATE) on the field • Pastures : grazing density? • Arable: ploughing? • Orchards: Pruning or weed control??? Sotiris Koutsomitros

14. Small Farmers • Total payments in 2015 up to 1250 €/year • Exemption from greening and cross compliance • Obligations: Preservation of agricultural land and their nature • Entry only in 2015 – farmer's decision to Exit at any time • Major reduction of administrative burden for Greece (350,000 holdings) Sotiris Koutsomitros

15. Greening • 30% for 3 mandatory measures depending on the type of land, with a penalty of at least 45%: • 1. Maintain permanent pasture • 2. At least 2 crop rotation with maximum 75% coverage per cultivation in holdings with arable land from 10Ha and over • 3. Eco focus area 5% MORE THAN 15Ha, including elements of the landscape for arable land • Organic farming = green • EXCLUSIONS: legumes, rice, plantations Sotiris Koutsomitros

16. Young Farmers • 25% bonus up to 25 hectares • 40 years age • Up to 5 years from the establishment of the holding • Up to 2% of the budget • 1% covers 8800 young farmers Sotiris Koutsomitros

17. Natural Constraints areas • Optional – up to 5% of the national ceiling • Target all or some of the areas with natural handicaps as defined by Member States on the basis of article 33 (1) of the new Rural Development (not necessarily mountainous and disadvantaged) • annual payment per hectare • Useful for replenishing income for some groups of farmers • Possibility to transfer funds between the pillars Sotiris Koutsomitros

18. Redistributive Payment • Optional for Member States, up to 30% of the national ceiling • Cut from everyone and benefit the «first» hectares as additional value • First hectares: up to 5 hectares for Greece • In Greece the application may benefit part time farmers at the expense of full time farmers Sotiris Koutsomitros

19. Rural development measures • Setting up producer groups • Short supply chains • Farm advisory • Specific subprogram for small farms and • Knowledge and information transfer actions • risk Insurance management • Innovation • Environment Sotiris Koutsomitros

20. Basic and Green payments • New entitlements for 2015 : • 1 entitlement per hectare • Either Greece as 1 region, or, Separation of pastures and croplands Pastures are common land and much cheaper than crop land • Convergence to a flat rate per hectare of the same region in 2019 • The value will depend on the decision for the regions • National Reserve(newcomers and new farmers) • All farmland will be covered • More vegetables and fruits covered Sotiris Koutsomitros

21. Coupled payments • Deficit in the trade balance (meat) • Food security (cereals) • Sustainability of the sector if dependant on primary production (sugar) • Complementarity of actions (feed stuff) Sotiris Koutsomitros

22. Direct payments for development • Basic Payment and Greening = guaranteed minimum income • Income Maximization from the market and economies of scale with collective organization (groups/chain) • Minimizing trade deficit through coupled payments • insert new capacity by strengthening farmers' increased effectiveness • Internal convergence = mitigation effects and Rural Development Measures • reaction time for actual development Sotiris Koutsomitros

23. Impacts and trends on horticulture • Market orientation • Increase of land with vegetables • Fruit increase? • Direct Payments = safety net • Target: Added market value • Cost limitation through collective actions • Logistics cut • Market orientation – Market access

24. Thank you!!! Info http://www.minagric.gr/index.php/el/the-ministry-2/agricultural-policy/koinagrotpolitik/1194-kapfuture http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/index_en.htm http://www.agrotikianaptixi.gr/rdpost2013/ Sotiris Koutsomitros