CAP Healthcheck

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Marion Fischer Boel launched her legislative proposals for the CAP Healthcheck in the European Parliament on 21 May 2008. Fischer Boel stressed the very different environment in which these changes have to be considered, particularly the concerns over food prices which she sees as further reason to free farmers to respond to market signals.

The French presidency announced its intention to secure agreement in the Council of Ministers by November 2008 so that the legislation would not be subject to the new co-decision procedures with the European Parliament and would  be adopted for the 2009 claim year.

The aim of the Healthcheck was further simplification of the SPS and de-coupling of production from support, to keep the SPS legitimate in the eyes of the public and for market instruments to become a safety net not principal market.  The proposals are now well known and include:

• The abolition of setaside
• The removal of coupled payments for most sectors
• The abolition of the energy crop premium from 2010
• Encouragement of member states to move towards flatter regional rates of payment from the historical basis
• Options for member states to adopt a €250 or 1ha minimum claim level together with the ability to reject claimants whose business aim 'is not targeted at exercising on agricultural activity'
• Deletion of of some SMR’s from Cross Compliance while extending GAEC rules to help member states retain some of the environmental benefits of setaside
• The abolition of intervention for all grains other than bread wheat, its effective suspension in other sectors and new limits on butter and SMP intervention
• Increased compulsory modulation
• Increased dairy quotas

There is a greater focus on the need for additional rural development funding (from the increased compulsory modulation) to meet the ‘new challenges’ of:

• Climate change and energy - this is a priority areas as ‘Agriculture and forestry can make an important contribution toward providing fuel stock for energy, carbon sequestration and in further reducing GHG emissions’
• Water management - the Water Framework Directive will be fully implemented in 2010 to 2012
• Biodiversity - member states have committed themselves to halt biodiversity decline by 2010 – a target the Commission admits is increasingly unlikely to be met
  

To read more detailed information about the proposals and their potential impact on farmers please click below:

CAP Healthcheck business update

For more information, please contact David Kinnersley on 01295 226294 or email david.kinnersley@fishergerman.co.uk

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