« Paving the way for sustainable growth » 15 June 2016

1. « Paving the way for sustainablegrowth » 15 June 2016

2. Key challenges for Europe • Remaining a world champion on all market segments • Driving a new green revolution – high-performance agriculture • Rural growth : key for growth in Europe

3. Key challenges for EU Agriculture • Being competitive again in an increasingly open world : growth & jobs • Face climate change and respond to societal demands. • Boost investments for all (small to big, local to global, food to non food) • Cope with market crisis and high uncertainty. • Need of a more European, targeted and efficient CAP

4. Do EuropeanFarmerscompete on a levelplayingfield ?

5. US competitiveness Farm Bill Stabilisation > 50 b$

6. EU trends Verylowgrowth 30 % fluctuation

7. Need for furtheradapatations of the CAP ? • The capacity to boost investments and better structure the food chain. • After nearly 30 years – are decoupled payments still the right policy response ? • To cope with volatility/crises • Encourage investments • Decrease environmental footprint • Scope to integrate innovation into the greening of the CAP which could be partially turned into an objective based policy ?

8. How to address volatility in the EU ? • 2 pitfalls to avoid : • copy-paste : neither US nor 70’s. • Populism. • Pragmatism, efficiency & EU fitted • 3 misconceptions : • Decoupled payments are 100 % right answer  current crisis • Countercyclical payments are THE answer for the EU : • Budgetary aspects : need to double budget in 2016 for cereals + milk sectors  Is it credible ? • Increasing by 50 % minimum fixed EU prices for cereal & milk to limit needs of countercyclical payments ( to x 2 in 2016) and related storage of high quantities  Is it doable ? • Impacts of such reviewed EU minimum fixed prices on other sectors : cereals to meat  payments to cereal sectors would imply payments to meat sector etc…. • CAP lack of efficiency to tackle volatility means all CAP measures have to be called off

9. How to addressvolatility? Farm Europe’scurrentwork • Without public support, most of EU farms don’t earn money even under “normal market conditions”. • CAP payments for economic & envi public goods are legitimate & needed: territorial and environmental challenges. • Climate & sanitary risks: • Scope to improve EU Farms protection : • Need to increase % of insured areas • Need to define suitable thresholds • Target of 90 % areas, Cost efficiency • Markets risks: • Insurance schemes : Turn over or gross margin, sectorial approach, link with futures, indicators based, thresholds • Incentive Farmers / precautionary savings : • Individual based • Mutual or sectorial based-> mutual funds • Public supports : • National : fiscal • European : cofinancing ? • Enhanced contractual relations • & An ambitious EU policy focused on investments and innovation

10. Livestock sector : short term European measures • European tender : • implementedatEuropeanlevel, open to all dairyfarmers • Volontaryreduction of production / 2015 • Incitative financial « reward «  • Europeanruleslimiting national financial support(art222, EU financed or State financed) to producersdecreasingvolontarytheir production • Europeanplan to assistfarmersleavingthe dairysector • Strategic plan tostructure the EU bovine meatsector

11. @FarmEurope #GFF2016 14/15 OCTOBER 2016, ITALY info@farm-europe.eu