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

The new CAP is raising questions and it is just as well

December 1st, 2014

“All the states of the CAP” is the title of the November 20 conference organized by the French Livestock Institute to report on the member states’ implementation of the new 2014-2020 CAP in the livestock sector.

From the total or partial decoupling of direct subsidies in The Netherlands and Germany to the coupled payments in Italy and Spain, the national implementation of the first pillar varies from one member state to the next, since the industry’s specificities and expectations are hardly blending within the EU. How then can we find coordinated and adequate solutions in the framework of an agricultural policy, which is common only in name?

The issues raised by the various participants to the conference mostly dealt with the fact that agricultural markets––especially livestock markets––are now fundamentally different from those prevailing in the early 2000s. As a result, yesterday’s solutions are no longer adapted to today’s new realities. By now, instability, uncertainty and hyper-volatility have become specific factors in these markets. According to Simon Schlüter of the German DVB Union, this is why “discussions on price volatility must held”, at a time when “farmers should no longer be relying on direct payments.” From this perspective, it seems relevant to focus on other systems, such as the insurance programs implemented in the United States, and to examine its potential applicability in Europe. As far as the milk output is concerned, the issue is to know how to best prepare for the post-quota era in 2015? What are the advantages of the “insurance margin” of the Farm Bill? ” Which are the gains provided by Canada’s policy to manage supply?

An increasing number of stakeholders do recognize that direct payments are not a satisfactory solution to the issue of price volatility. As a consequence, the implementation of an alternative and flexible system to guarantee a minimal compensation level to farmers, while lastingly stabilizing their incomes, is an option that meets a genuine interest from European decision makers. In fact, in the current anxiety-provoking context, decoupled flat-rate subsidies are quite powerless to protect farmers from international price fluctuations.

It is thus crucial to strengthen the added value of the Common Agricultural Policy’s resources, and hence modernize agriculture, especially through flexible and counter-cyclical subsidies, in order to confront the 21st century new challenges––increased volatility of agricultural prices and inputs, growing uncontrolled speculation, and mounting budget constraints following the debt crisis and the global rise of food insecurity.

1 Farm Bill versus PAC: The gamble on insurance programs http://www.momagri.org/UK/a-look-at-the-news/Farm-Bill-versus-CAP-The-gamble-on-insurance-programs_1428.html

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Paris, 20 June 2019