Editing Common Agricultural Policy (section)

====Reform package 2014====
In 2010 the European Commission discussed the next reform of the CAP, which would coincide with the next financial perspectives package, as from 2014. The Commissioner responsible for Agriculture and Rural Development Dacian Cioloş, outlined seven major challenges that the future CAP needed to address: food production, globalization, the environment, economic issues, a territorial approach, diversity and simplification.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/400&format=HTML&aged=0&language=EN&guiLanguage=en |title='The CAP after 2013' Brussels |publisher=Europa (web portal) |date=20 July 2010|access-date=23 April 2011}}</ref> The cited reasons for reform plans included:
* a need to respond to the economic, environmental and territorial challenges faced by agricultural and rural areas today and in the future, and in doing so to better align the CAP to the Europe 2020 strategy for smart, sustainable and [[inclusive growth]].
* a need to make the policy more efficient and effective, as well as to further simplify it while maintaining sound financial management and controllability
* making CAP support more equitable and balanced between Member States and farmers and better targeted at active farmers.

The Commission launched the CAP reform process with an extensive public debate on the future of the Cap between April and June 2010, followed by a public conference in July 2010, with around 600 participants.<ref>{{cite web|url=http://ec.europa.eu/agriculture/cap-post-2013/debate/report/summary-report_en.pdf |title=CAP debate outline for Summary Report |date=15 June 2023 }}</ref> The purpose of the debate was to have different sectors of society taking part. "The Common Agricultural Policy is not just a matter for experts. It's a policy for all Europeans", said Commissioner Cioloş.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/150&format=HTML&aged=0&language=EN&guiLanguage=en |title=The launch of the debate |publisher=Europa (web portal) |date=12 April 2010 |access-date=23 April 2011}}</ref> Based on the wide-ranging public debate, on 18 November 2010, the Commission presented a Communication on "The CAP towards 2020"<ref>{{CELEX|52010DC0672|text=Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future}}</ref> The Communication Paper outlined three options for the future CAP and launched a consultation with other institutions and stakeholders. Over 500 contributions were received, 44% of which came from the farming and processing sector. These contributions form an integral part of the Impact Assessment of the legal proposals. The impact assessment evaluates alternative scenarios for the evolution of the policy on the basis of extensive quantitative and qualitative analysis<ref>http://www.acceptance.ec.europa.eu/agriculture/analysis/perspec/cap-2020/index_en.htm#ia{{dead link|date=November 2014}}</ref>

On 12 October 2011 the Commission presented a set of legal proposals to reform the common agricultural policy (CAP) after 2013.<ref>{{cite web|url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/index_en.htm |title=Legal proposals for the CAP after 2013 – Agriculture and rural development |publisher=European Commission |date=12 October 2011 |access-date=28 March 2012}}</ref> Its stated aim is to guarantee European citizens healthy and quality food production, while preserving the environment.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1181&format=HTML&aged=0&language=en&guiLanguage=en |title=EUROPA – Press Releases – The European Commission proposes a new partnership between Europe and the farmers |publisher=Europa (web portal) |date=12 October 2011 |access-date=28 March 2012}}</ref> According to the proposal, the three broad objectives of the future CAP are: "Viable food production", "Sustainable management of natural resources" and "Balanced territorial development", which respond directly to the economic, environmental and territorial balance challenges identified in the Communication and which guide the proposed changes to the CAP instruments.<ref>{{cite web|url=http://ec.europa.eu/agriculture/cap-post-2013/communication/index_en.htm |title=Commission Communication on the CAP towards 2020 – Agriculture and rural development |publisher=European Commission |date=18 November 2010 |access-date=28 March 2012}}</ref>

The Lisbon Treaty, which came into force on 1 December 2009, has extended the legislative powers of the European Parliament on agricultural matters, with the EP deciding together with the Council in a procedure known as the [[co-decision]] procedure. For the first time both institutions (European Parliament and the council) decided on an equal footing on the new agriculture legislative package. The European Parliament and the council, debated the text. The approval of the different regulations and implementing acts was received by mid-2013. On 26 June 2013 agreement was reached between the European Commission, the Council and the EU Parliament on a new CAP.<ref>{{cite web|url=http://ec.europa.eu/agriculture/policy-perspectives/policy-briefs/05_en.pdf |title='Overview of CAP Reform 2014–2020. Agricultural Policy Perspectives Brief N°5.' Brussels |publisher=Europa (web portal) |date=20 December 2013|access-date=21 May 2015}}</ref><ref>{{cite web|url=http://europa.eu/rapid/press-release_MEMO-13-621_en.htm |title=CAP Reform – an explanation of the main elements. MEMO/13/621 26/06/2013. Brussels |publisher=Europa (web portal) |date=26 June 2013|access-date=21 May 2015}}</ref> The CAP reform came into force as from 1 January 2014.

=====New design of direct payments=====
Direct payments contribute to keeping farming in place throughout the EU territory by supporting and stabilizing farmers' income, thereby ensuring the longer-term economic viability of farms and making them less vulnerable to fluctuations in prices. They also provide basic public goods through their link with cross compliance.<ref name=autogenerated2>{{cite web |title=Proposal for a Regulation of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy |publisher=European Commission |date=19 October 2011 |url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/com625/625_en.pdf |access-date=6 November 2014}}</ref>

The legal proposals aim to move away from the different systems of the Single Payments Scheme in the EU-15 (which allows for historical references, or a payment per hectare, or a "hybrid" combination of the two) and the Single Area Payments Scheme (SAPS) in most of the EU-12, a new "Basic Payment Scheme" will apply after 2013.<ref>{{cite web|url=http://ec.europa.eu/agriculture/markets/sfp/pdf/ms_en.pdf |title=Direct support – Agriculture and rural development |publisher=European Commission |date=19 September 2011 |access-date=28 March 2012}}</ref> This will be subject to "cross compliance" (respecting certain environmental, animal welfare & other rules), as at present, although there are various simplifications to the current requirement. It intends to reduce significantly the discrepancies between the levels of payments obtained between farmers, between regions and between Member States. All Member States will be obliged to move towards a uniform payment per hectare at national or regional level by the start of 2019. In line with the Commission proposals within the Multi-Annual Financial Framework, the national envelopes for direct payments will be adjusted so that those that receive less than 90% of the EU average payment per hectare will receive more. The gap between the amounts currently foreseen and 90% of the EU-27 average is reduced by one-third.<ref name=autogenerated2 />

The reform of direct payments was intended to make them better suited with regard to:
*'''"Greening"''': The legal proposals propose new concepts. Among them is the "greening" of direct payment. To strengthen the [[environmental sustainability]] of agriculture and enhance the efforts of farmers, the Commission is proposing to spend 30% of direct payments specifically for the improved use of natural resources. Farmers would be obliged to fulfill certain criteria such as crop diversification, maintenance of permanent pasture, the preservation of environmental reservoirs and landscapes.<ref>{{cite web |title=Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1234/ 2007 as regards the regime of the single payment scheme and support to vine-growers |publisher=European Commission |date=12 October 2011 |url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/com631/631_en.pdf |access-date=6 November 2014}}</ref>
*'''Young farmers''': To attract young people (under 40 years) into the farming business, the Commission is proposing that the Basic Payment to new entrant Young Farmers should be topped up by an additional 25% for the first 5 years of installation.<ref name=autogenerated3>{{cite web |title=Proposal for a Regulation of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) |publisher=European Commission |date=19 October 2011 |url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/com627/627_en.pdf |access-date=6 November 2014}}</ref>
*'''Small farmers''': Any farmer wishing to participate in the Small Farmers Scheme will receive an annual payment fixed by the Member State of between €500 and €1,000, regardless of the farm's size. (The figure will either be linked to the average payment per beneficiary, or the national average payment per hectare for 3 ha.). Participants will face less stringent cross-compliance requirements, and be exempt from greening.<ref name=autogenerated3 />
*'''Active farmers''': This new definition is aimed to exclude payments to applicants who exercise no real or tangible agricultural activity on their land. The Commission is proposing that payments would not be granted to applicants whose CAP direct payments are less than 5% of total receipts from all non-agricultural activities. This doesn't apply to farmers who receive less than €5,000 in direct payments.<ref name=autogenerated3 />
*'''"Capping"''': In the autumn of 2007 the European Commission was reported to be considering a proposal to limit subsidies to individual landowners and [[intensive animal farming|factory farms]] to around £300,000. Some factory farms and large estates would be affected in the UK, as there are over 20 farms/estates receiving £500,000 or more from the EU.<ref>{{cite web |url=http://www.farmersguardian.com/story.asp?sectioncode=1&storycode=4180 |title=top 20 cap payments |work=Farmers Guardian |access-date=10 November 2007 |date=1 September 2006 |archive-url=https://web.archive.org/web/20090724154213/http://www.farmersguardian.com/story.asp?sectioncode=1 |archive-date=24 July 2009 |url-status=dead}}</ref><ref>{{cite web |url=http://www.rpa.gov.uk/rpa/index.nsf/vContentByTaxonomy/A4B88A09234F1D1380257046003846BE?OpenDocument |title=Rural Payment Agency "Farm Payments by value 2003–2004 |publisher=Rpa.gov.uk |date=17 August 2006 |access-date=23 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20091225212259/http://www.rpa.gov.uk/rpa/index.nsf/vContentByTaxonomy/A4B88A09234F1D1380257046003846BE?OpenDocument |archive-date=25 December 2009}}</ref> Similar attempts have been unsuccessful in the past and were opposed in the UK by two strong lobbying organisations the [[Country Land and Business Association]] and the [[National Farmers Union (England and Wales)|National Farmers Union]]. Germany, which had large [[collective farming|collective farm]]s still in operation in what was East Germany, also vigorously opposed changes marketed as "reforms". The proposal was reportedly submitted for consultation with EU member states on 20 November 2007.<ref>{{Cite news |url=http://news.independent.co.uk/uk/this_britain/article3143253.ece |title=Off with their subsidies! EU threatens to slash huge annual payments to Britain's wealthiest landowners |first=Jerome |last=Taylor |work=[[The Independent]] |date=9 November 2007 |archive-url=https://web.archive.org/web/20080930170526/http://news.independent.co.uk/uk/this_britain/article3143253.ece |archive-date=30 September 2008 |access-date=6 February 2016 |url-status=dead}}</ref> In the finally adopted rules, the amount of support that any individual farm can receive will be limited to €300,000 per year. However, to take employment into account, the holding can deduct the costs of salaries in the previous year (including taxes & social security contributions) before these reductions are applied. The funds "saved" will be transferred to the Rural Development envelope in the given country.<ref>{{cite web |title=Proposal for a Council Regulation determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products |publisher=European Commission |date=12 October 2011 |url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/com629/629_en.pdf |access-date=6 November 2014}}</ref>
*'''Cross compliance''': All payments will continue to be linked to the respect of a number of baseline requirements relating to environment, animal welfare and plant & animal health standards. However, cross compliance will be greatly simplified.<ref>{{cite web |title=Proposal for a Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy |publisher=European Commission |date=19 October 2014 |url=http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/com628/628_en.pdf |access-date=6 November 2014}}</ref>