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Aragon in Spain:

CRITICAL POINTS AND CHALLENGES IN THE MANAGEMENT OF AGRICULTURAL FUNDS FOR 2010-2013. THE CASE OF ARAGON, SPAIN. Oviedo, 29th April 2010 Jesús Nogués General Director of Agrarian Production Department of Agriculture and Food. Aragon in Spain:.

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Aragon in Spain:

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  1. CRITICAL POINTS AND CHALLENGES IN THE MANAGEMENT OF AGRICULTURAL FUNDS FOR 2010-2013. THE CASE OF ARAGON, SPAIN. Oviedo, 29th April 2010 Jesús Nogués General Director of Agrarian Production Department of Agriculture and Food

  2. Aragon in Spain: 1.3 Million of inhabitants (3 %) 4.7 Million of hectares (9.5 %)

  3. Summary of the presentation. 1.- Food industry figures in Aragon. 2.- CAP payments in Aragon. 3.- Structure and means of the Paying Agency. 4.- Management of critical points. Objective: simplification of procedures. 5.- Conclusions.

  4. 1.- General agriculture figures in Aragon. • Agriculture Labour Force: 4.6 %. 30,000 (full time); 57,000 payment applicants. • GDP agriculture sector (primary): 5 %. • Agrarian Macromagnitudes 2009 (primary sector): • Agro-Industrial figures: Cereals, fodder, fruits and vegetables Pigs, cattle, sheep Meat industry, wine, fruits and vegetables, flour and pasta

  5. 1.- General agriculture figures in Aragon. • Essential characteristic: arid and semi arid environment, with pluviometrics of the Ebro Valley between 250 and 350 mm/year: • 460.000 hectares of irrigated land and 700,000 hectares with yield ≤2 Tm/ha. Channel of Bardenas Channel of Cinca Channel of Aragon and Catalonia Channel of Monegros Imperial Channel

  6. 1.- General agriculture figures in Aragon. • Comparison of the productive structure:

  7. 1.- General agriculture figures in Aragon. • Economic impact of CAP payments: • The above mentioned payments imply the 29.7 % of the Agricultural Income (primary sector). • Conclusion: They constitute essential funds for the adequate maintenance of the agricultural, agro-industrial, environmental (public goods) sector and of the regional support of Aragon, so that all management authority bodies have earmarked all the necessary material and human resources for its adequate management.

  8. 2.- CAP payments in Aragon.

  9. 2.- CAP payments in Aragon. • Development of direct payments of Pillar 1 right after the enforcement of Health Check ((EC) Regulation No 73/2009): • After the withdrawal expected for 2012, declouped payments to production will reach the 94 %.

  10. 2.- CAP payments in Aragon. • Development of payments article 68 of Pillar 1, right after the enforcement of Health Check ((EC) Regulation No 73/2009):

  11. 2.- CAP payments in Aragon. • Development of agro-environmental payments of Pillar II, right after the enforcement of Health Check ((EU) Regulation No 73/2009), new modulations: €15.9 M €21.9 M

  12. 3.- Structure and means of the Paying Agency.

  13. Management Paying Agency 1st Level Technical General Secretary General Management Agrarian Production Public Enterprise (SIRASA) • S. Computing • S. FEAGA Accounting • S. Legal • S. Cross-compliance and IACS. • S. Single Payment Scheme • S. Agricultural Payments. • S. Husbandry Payments. S. Audit and Internal Control 2nd Level - 3 Provincial Services: 2 sections for each province. - 48 Regional Offices. 3rd Level 3.- Structure and means of the Paying Agency. • Objective of the structure after Health Check: to seek SIMPLICITY.

  14. 3.- Structure and means of the Paying Agency. • Cost of allocated resources. Note: Cost of financial adjustments is not included.

  15. 3.- Structure and means of the Paying Agency. • Comparison of cost/paid payments.

  16. 4.- Management of critical points. Objective: simplification of procedures.

  17. 4.1.- Land Parcel Integrated System and constant update through land controls. Previous considerations. • Concept of Single administrative body with different levels: European, National and Regional (where applicable). Need to adapt all structure elements to agricultural land farming reality. • Improve information flow from land farming to estranged administrative body authorities. • Simplification: is (EC) Regulation No 1234/2007 a real improvement regarding this issue? will the Checkup vs article 68 R 73/2009 be it? • Too much complexity for standardising constant means with discrete models (complexity far beyond rational optimum): • - Olive grow (overcome); OCM Vineyards, Density controls for shell fruits...

  18. 4.1.- Land Parcel Integrated Systemand constant update through land controls. Previous considerations. • Proposals: • To consider other options based on more simple models. • To reduce payments in accordance with prior statistical researches. • Farmers prefer smaller payments as long as it implies streamlined paperwork simplicity. • Positive proposal of a training programme for Commission officials of DG Agri and RD (document COM(2009) 128 final)

  19. 4.1.- Land Parcel Integrated Systemand constant update through land controls. Simplification: • Simplification starting with remote sensing application for payments. • Regarding land controls, one single report including all data related to audited aspects (SIG payments of Pillar I and IIor Conditionality). • Strengthening of controls through remote sensing. Implementation of two windows with 240,000 controlled hectares. • Classic control: use of agile computing systems (Tablet PC) for three seasons. Positive experience with positive results and optimum usage of human and material resources.

  20. 4.1.- Land Parcel Integrated Systemand constant update through land controls. Simplification: • Tablet PC + GPS: Used since 2008: • It improves control efficiency (easy usage). • It includes a control report which is later transferred to the database. • Instantaneous update of SIGPAC (LIPS).

  21. 4.2.- Cross-compliance. Previous considerations. • Thoughts aloud... is the required level of cross-compliance acceptable? • Current CAP entitlements were set out by CAP reform of 1992 due to the difference between European internal and external prices at the opening of the internal Community market. • Receiving public funds, is justified by a strict control of all obligations set out by Community Directives?Are all public entitlements subject to the same controls and requirements? • Need of a better information flow among all levels of the European Agrarian Management.

  22. 4.2.- Cross-compliance.Previous considerations. • Check points to be considered at land farming: • Do follow up controls for sanctions ≤ €100 have sense? Favourable proposal 13 (document 13 EM) for its elimination. • Favourable possibility of elaborating a single legal framework for Cross-compliance with SMART elements. • Favourable proposal 12 (document 13 EM) for eliminating RLG controls.

  23. Control specialised authority body: Environment Control specialised authority body: Food Security PAYING AGENCY • Report on Environment • Report on Public Health • Report on BCAM • Report on animal well-being • Record of areas (tablet PC) • Record of stockbreeding and phytosanitary products (land farming) • Record of animal well-being • Common computing system for sanctions. • Payment system. 4.2.- Conditionality. Applied operative. 4.2.- Cross-compliance. Applied operative.

  24. Applicants for CAP payments (direct, PDR) 54,662 Selected conditionality files 570 Control plan Out of sample Total 696 Files with non-fulfillment 254 442 Sample penalised files Selected Penalised (No) Penalised % 254 44.6 570 4.2.- Cross-compliance. Results 2009.

  25. Sample penalised files organised by Field and penalty % a) Within the conditionality sample (254) Percentage of reduction Field Total 1% 3% 5% Environment 10 5 0 15 Public health, 10 47 52 animal and plant health 109 BCAM 101 25 36 162 Animal welfare 1 1 1 3 a) Out-of-cross-compliance sample (442) Percentage of reduction Field Total 1% 3% 5% Environment 0 11 0 11 Public health, 52 18 14 animal and plant health 84 BCAM 304 25 7 336 Animal welfare 8 3 0 11 4.2.- Cross-compliance. Results 2009.

  26. 4.2.- Cross-compliance. Disclosure. • Training of all levels of the Paying Agency and of Specialised Bodies which take part in the process. • Programme of advice on land farming. • Paying Agency WEB PAGE. • Bi-monthly magazine for the public disclosure of the Paying Agency with 10,000 numbers. • The application form, the farmer´s copy, compile a summary of the most important compulsory records and requirements in accordance with the land farming orientation.

  27. 5.- Conclusions. • Is an actual simplification (- 25 % COM (2009) 128 final) in payment control and implementation procedures objectively perceived? Different answers may exist depending on the Agrarian Management issue involved. • Improve information flow among all levels of the European Agrarian Management in order to adjust decision-making to land farming reality. • An actual simplification must be based on not only an improvement of management efficiency of Payment Agencies, but also simplification of procedures of administrative levels estranged from land farming reality.

  28. 5.- Conclusions. • There are two levels of Simplification: effect on farmers and effect on Paying Agencies. Both are closely linked and, thus, difficult to separate. • The complexity of current procedures, together with the increased audit requirements (second level controls, audit clues), or personnel division for the implementation of the same procedure (administrative controls or land controls) leads OP to maintain current annual cost levels even though applying the 39 measure simplification plan discussed at European level. • Spain's position report on the simplification (www.fega.es) • Set out the Reform of 2014 based on the nuclear concept of simplification, even though this may imply a complete change of current procedures.

  29. Department of Agriculture and Food Government of Aragon www.aragon.es

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