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The Greek Experience of the CAP Reform of 2003: Evidence and Prospects By :

Dilemmas of the CAP reform. Between competitiveness and public goods: can farmers deliver both? . The Greek Experience of the CAP Reform of 2003: Evidence and Prospects By : Stathis Klonaris & Sotiris Koutsomitros. 8 th of April Agricultural University of Athens.

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The Greek Experience of the CAP Reform of 2003: Evidence and Prospects By :

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  1. Dilemmas of the CAP reform. Between competitiveness and public goods: can farmers deliver both? The Greek Experience of the CAP Reform of 2003: Evidence and Prospects By : Stathis Klonaris & Sotiris Koutsomitros 8th of April Agricultural University of Athens

  2. Historical Development of CAP Productivity Competitiveness Sustainability Agricultural University of Athens

  3. The need for Policy • What citizens desire • Safe, Secure and Cheap food • Lively countryside with good natural environment and services • What farmers need • Employment • Stable income • Standard of living • Infrastructure Agricultural University of Athens

  4. The Greek Challenges Challenge Response • Decoupling of payments and Market Orientation • Regional model • Activity Diversification (tourism, food processing ) • Cross Compliance • Agri–environmental measures • Low Income • Territorial Cohesion • Viability of rural areas • Consumers concerns for Food safety • Environmental Protection Agricultural University of Athens

  5. Background Note for Greek Agriculture • Greek Agriculture in 2010 accounted for 2.4% of GDP (EU-27 average was 1.1%) • More that 500 thousands persons where working in agriculture, fishery and forestry corresponding to 11.9%of the total civilian employment (EU-27 average was 5.1%) • In 2007, UAA represents 3.8 millions corresponding to 2.14% of the EU-27 UAA • In 2007 about 860 thousand agricultural holdings where 17,3% had an economic size less than 1 ESU. • They made use of about 4 million ha of agriculture area which is on average 4.7 ha per holding (compared with 5.8 in 2005 and 5.9 in 2003)(compared with EU15 average 22 ha and EU25 average 16.8 ha) • http://ec.europa.eu/agriculture/publi/ms_factsheets/2011/gr_en.pdf Agricultural University of Athens

  6. Overview of Implementation of the 2003 Reform (1st and 2nd pillar) Agricultural University of Athens

  7. Overview of Implementation of direct payments (Reg. (EC) No 73/2009) Agricultural University of Athens

  8. Administrative structure • The Ministry: Negotiations, Legal Provisions, Implementing Provisions for Pillar 1 • Managing Authority for R.D :Negotiations, Legal Provisions, Implementing Provisions for Pillar 2 • Paying Agency: Management of Entitlements, Control & Payments for both pillar 1 and 2. • The Veterinary Service and the Plant Protection Service responsible for specific SMRs of Cross Compliance Agricultural University of Athens

  9. Impacts of Policy implementation Non activated entitlements 2007 70 million €. Reduction of area under main crops - Market oriented? Pastures and animals Cross Compliance Still Regional Inequalities of Directs payments Agricultural University of Athens

  10. Cross Compliance impacts • Information Campaign (300 meetings) has raised farmers' awareness • GAECS: more sustainable practices • Less bad practices on the field (i.e. stubble burning, sloppy fields) • Administration headache (crop rotation, water licenses) • SMRs: Complicated to regulate and control • Safer procedures on the field • A lot not applicable on some farms

  11. Benefits of Cross Compliance and decoupling • Lower inputs – higher quality • Change of Farmer’s attitude • Sustainable use of resources • Environmental and landscape protection • Response to consumers desires • Lower administrative cost Agricultural University of Athens

  12. Does the CAP deliver? Society Farmers • Living Standard? • Infrastructure (education, health, transportation, web access)? • Employment? • FOOD: Safe, High quality?, Sufficient ?, Cheaper ? • Countryside: Lively?, viable ? • Good natural Environment • Protection of the heritage and the environment of rural areas Agricultural University of Athens

  13. Perspective challenges • Food Safety and Security • Climate change impact mitigation • Combating Drought and Desertification • New methods and new crops • Management of water resources • Viability of Rural Areas, specially areas with Natural Constraints • An effective scheme against price volatility

  14. …. Thank you for attention… Discussion open… Agricultural University of Athens

  15. Indicator A for the income of Agricultural activity, (2005=100) Agricultural University of Athens

  16. Greek Challenges Low support per Beneficiary Agricultural University of Athens

  17. Greek Challenges High support per hectare Agricultural University of Athens

  18. Evolution of the Amount of Direct Payments and no of Beneficiaries Agricultural University of Athens

  19. Area Coverage Agricultural University of Athens

  20. Market Oriented? Agricultural University of Athens

  21. Number of Non-Compliant Farms, 2008 (total on the spot checks 14.192 farms) Agricultural University of Athens

  22. Distribution of Non Compliances Farms, 2008 Agricultural University of Athens

  23. Animal Units Agricultural University of Athens

  24. Average value of Entitlements and number of Beneficiaries by region in 2010 Agricultural University of Athens

  25. Payments Distribution in 2008 Agricultural University of Athens

  26. Rural Development Agricultural University of Athens

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