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Development and future perspectives for Agricultural Policy in Switzerland and Europe

Development and future perspectives for Agricultural Policy in Switzerland and Europe Bernard Lehmann, Federal Office for Agriculture FOAG Dairy Press Tour Switzerland , 27 October 2013. Overview. Information about Swiss Agriculture Challenges for Agriculture

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Development and future perspectives for Agricultural Policy in Switzerland and Europe

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  1. Development andfutureperspectivesforAgriculturalPolicy in Switzerlandand Europe Bernard Lehmann, Federal Office for Agriculture FOAG Dairy Press Tour Switzerland, 27 October 2013

  2. Overview • Information about Swiss Agriculture • ChallengesforAgriculture • HistoryofAgriculturalPolicy in Switzerland • CurrentAgriculturalPolicy • Outlook

  3. About Swiss AgricultureNatural conditions Plains Jura Alps

  4. Fruit and vegetables, 2% Arable land 23 % Vineyards 1% Meadows and pastures59 % Sownmeadows,forage crops15 % About Swiss AgricultureLand Use

  5. About Swiss AgricultureProduct portfolio 2010: 10.3 bn CHF Source: OFS

  6. About Swiss AgricultureFood consumption and production Overall self-sufficiency rate Switzerland: about 60% Kg per person and year Milk Fresh Fruits Fresh Vegetables Cereals Potatoe Sugar Wine Pork meat Cheese Fats & Oils Chicken meat Beef meat Eggs Fish Cream Butter Cacao Veal meat Swiss production Imports Source: Farmers Union

  7. Challenges for Swiss AgricultureSwitzerland as an island? Prices forproductioninputs Prices foragriculturalproducts Farm size

  8. ChallengesforAgriculture Need forressources Land per person EcologicalFootprint (Global hectares per person) Sustainabledevelopment Human Development Index Quelle: Global Footprint Network (2009)

  9. ChallengesforAgriculture Climate Change Need forirrigationwater (m3/ha) Quelle: World Bank (2010): World development Report 2010: Sources: Müller and others 2009; World Bank 2008c.

  10. ChallengesforAgriculture • Mitigate negative emissions Pesticides Nutrients Greenhouse gas Fine Dust

  11. ChallengesforAgriculture • Enhance positive emissions Decentralizedsettlement Landscape Biodiversity Soilprotection

  12. Historyof Swiss AgriculturalPolicy • Stepbystepreformprocess • Step I • Decoupling of support (direct payments) • Price reductions • Incentives for specific ecological services (e.g. biodiversity) • Tariffication of market access instruments (WTO) Focus: decoupling and environment • Step II „AP 2002“ • Liberalisationofdomesticmarkets Competitiveness Abolition ofmarketinterventionsystems • Cross-compliancefor all directpayments Focus: marketorientation • Step III „AP 2007“ • Abolishment of dairy quota system • Further steps toward more competitiveness • Strengthening of rural areas and social accom-panying measures Focus: competitiveness / social sustainability 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

  13. Historyof Swiss AgriculturalPolicy • Impact ofchange in AgriculturalPolicy Output Food Lessproductiveproductionsystemsbecauseofecologicalmotivation Productivity/ ha Reservingspaceforbiodiversity Pastpolicies AgriculturalPolicy 2014-17 Impact on Environment, Animals, Landscapes (& Risks) Biodiversity, fragmentedagriculturallandscapes Emission per area (Water, Air, Soil)

  14. Historyof Swiss AgriculturalPolicy • Development of Producer Support Estimate % of gross farmreceipts Non commoditycriteria OECD 2013 OECD 2013 Commodity Output

  15. Current Swiss AgriculturalPolicy • AgriculturalPolicy 2014-2017 AgriculturalPolicy 14/17 Programmes Art 11: Innovativeprojects Ressources Landscape Systems Biodiv. Art 37: Dairytradecontracts Contributionforfoodsecurityandqualityoflandscape Border protection Improvement of production structure Land use planning

  16. Current Swiss AgriculturalPolicy • Dairymarketpolicy • Allowance for milk processed into cheese plus allowance for feeding without silage • Federal Council has possibility to extend self-help measures of an organization - that meets specific requirements - to non-members (since 2002) • Art 37: Stepwise procedure for dairy contracts 2014 • Milk producer and processor must conclude a contract that fulfills minimum requirements • Possibility for the government to make contract compulsory • Worst case: Government designs an obligatory contract

  17. Outlook The role of Agricultural Policy Functionandposition in thedynamicsofthemarkets(Abbilitytowithstandcompetitionandtogrow) ChallengesforAgricultureand Food Economy Functionandplace in SpaceandEcosystems (Space- andEcosystemcompatibleproductionsystems = Agroecosystems)

  18. Thankyouforyourattention

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