The Common Agricultural Policy after 2013: challenges and possible so

Popp, József – Molnár, András

Keywords: CAP reform, direct payments, rural development, budget review

The objectives of the new CAP should include: protection of biodiversity, mitigation of climate change, contribution to competitiveness and contribution to cohesion, whereas the objective to support farm incomes and to assure reasonable prices for consumers should be abandoned. SPS should be phased out because these direct payments cannot be justified as income support or compensation for higher costs, or for food security. The future size of the present second Pillar should be based on the merits of the policies in question. Reforms since 1992 set the CAP on the right track, with slow changes. The question arises: what short term changes would be consistent with the desired long-term outcome? The implementation of lower uniform direct payments is a better solution than further modulation. Progressive modulation (capping) is not an efficient way to address inequality and does not address structural problems. It is reasonable to implement cross compliance in the future but no additional standards should be introduced. The introduction of a single agricultural fund (merging pillars 1 and 2) would undermine the credibility of phasing out pillar 1. The budget allocations need to respond to emerging global crises, especially the climate change, which is arguably the greatest challenge encountered by mankind. Science and technology are the keys to such a response since the present availability of large scale low-carbon-technologies is limited. By decreasing agricultural spending, the EU budget should focus on the preservation of biodiversity and mitigation/adaptation to climate change. A CAP reform along these lines will achieve a more reliable food supply, reduced greenhouse gas emissions, greater biodiversity, and more responsible soil and water management at lower costs. It will also help to ensure fair competition among farmers in the internal market, and facilitate responsible trade policies which enhance the legitimacy of the EU in the global community.

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