A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

A reduction in direct payments:
a farewell to veal, beef and pork?

April 6, 2015

The European Commission has once again cutback direct payments. The latest proposal for financial discipline adopted by the European Commission on 27th March for the 2016 budget announced a reduction in direct payments of 1.39% for amounts above 2,000€. This adjustment is intended to supply the agricultural sector’s 2016 crisis reserve, planned at 441.6 million euros (against 433 million euros in 2015). It is now up to Parliament and the European Council to validate or adjust this rate by the end of June 2015. In 2014, this adjustment was 1.30% for a reserve of 433 million euros in 2015. The Commission’s arbitration ultimately means that farmers will have to give up 1.39% in direct payments provided under the CAP. If the reserve is not used, it will be reimbursed to farmers.

This cutback, however useful the crisis reserve, is ultimately only a booster solution where the new CAP provides tools and a reduced budget, provisions unsuited to contemporary challenges in agriculture. Yet - and the dairy crisis as well as the disappearance of milk quotas last April 1st are proof - the need for a redeployment of amounts allocated to decoupled direct payments towards flexible and efficient countercyclical instruments, has never made as much sense. A statement recently shared by Dominique Chargé, President of the FNCL1 (National Federation of Milk Cooperatives), who in an interview with Les Echos, called for a common agricultural policy adapted to volatility through the introduction of modular tools adapted to the inherent instability of markets.

How, indeed, do we explain that the CAP is the only one to spend nearly 60% of its budget on decoupled direct payments that do not take markets into consideration, while other agricultural powers concentrate their efforts on budgetary instruments that reduce the adverse consequences of market volatility on agricultural income?

Nothing today justifies the further dismantling of European instruments for agricultural crisis management; there is also no reason why agriculture should be used as an adjustment variable for political score-settling. However, all lights are green for a new direction for the CAP review in 2016 on behalf of the strategic and specific character of European agriculture.

1 Fédération Nationale des Coopératives Laitières

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Paris, 20 June 2019