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.
  Focus on issues  

Philippe Mangin, President Coop de France
“intelligence calls for a flexible CAP 2014 with countercyclical payments”

Frédéric Hénin, Editor in Chief, Terre-net

Article published in Terre-net Magazine

Diverging opinions between Germany and France make it particularly difficult to come to a budget agreement, according to Philippe Mangin of Coop de France, who is also in favour of flexible payment systems.

For Philippe Mangin, CAP reform doesn’t look good. Eight days after the first Accoa congress (Alliance of Agricultural Cooperatives France and In Vivo), the president of Coop de France highlighted the differences in the approaches made by France and Germany to the Council of Heads of State and Government in Brussels on 22 and 23 November.
“Germany is campaigning for a budget reduction and does not want to discuss greening in order to maintain its production capacity, while France wants what was decided”" he said. Under these conditions, discussing convergence and the terms of payment distribution is inappropriate because the reform project will only be viable if the budget is maintained. But more importantly, the project’s rigidity means the CAP does not stand up to the reality experienced by farmers.

“Intelligence calls for a flexible CAP with countercyclical payments. We must stop focussing on decoupling and following WTO recommendations made during the Doha round negotiations which are currently at a standstill”. Indeed, Philippe Mangin is opting for variable and recoupled payments to adjust amounts to market conditions. He recognizes the fact that there is no reason to maintain the amount of payments for grain producers at current levels given grain prices. Flexible payments would introduce greater solidarity between breeders and grain producers than by the implementation of the modernization funds (payment of 2€/t) aimed at grain producers and breeders.

100 million euros in reductions

But this reform implies a multi-year budget approach to the CAP and not an annual approach as is currently the case.

Another topical subject that was discussed, “the union victory” won by Coop de France by getting the National Assembly to vote an amendment that entitles cooperatives to the same tax credit as companies in the private sector, granted under the competitiveness pact launched by the government. The annual 100 million will lighten the payroll by up to 6%. A welcome windfall to restore competitiveness in cooperatives, which like private sector companies are faced with social distortions. But this reduction in payroll costs will not solve the underlying problems that hamper the profitability of these cooperatives. Tax benefit was not granted since cooperatives, because of their status, do not pay corporate tax.

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Paris, 20 June 2019