|Paris, August 22, 2016
Fair Châlons Conference, August 30, 2016 at 10:30AM
How to restore a strategic course to the CAP?
How to support farmers’ incomes in times of crisis? This is the key issue to be addressed by the think tank Momagri following the release of its White Paper “A new Strategic Course for the CAP” at the conference to be held at Fair Châlons on Tuesday, August 30, 2016 at 10:30AM.
Farmers need support when markets are collapsing. This notion may look simple, yet the European Commission has banned it from the CAP for close to 20 years.
Today, there is a will to force the agricultural community to accept the idea whereby regulation would belong to the past and “resilience” would be the future for farmers. In a nutshell, the European agricultural community must cope on their own in a century when all the world’s major political powers are strengthening their agricultural policies!
Momagri is contesting this position and proposes a different blueprint that would bring genuine support to an increasingly dismayed farming community. This proposal, which concerns grain, oilseeds and milk––or over two-thirds of 1st pillar spending––returns the crucial support in times of crisis at the heart of the CAP through lasting mechanisms instead of late and short-lived marginal adjustments.
The scheme is backed by economic, budgetary, macro and micro evaluations that will be presented at Fair Châlons and shows that:
- Farmers’ revenues will be stabilized at an average level enabling them to tackle market jolts;
Momagri will outline the path to a stabilizing CAP that would redeploy a share of direct payments (1st pillar) toward counter-cyclical support to be activated in case of crisis. The FDSEA 51 has tested this proposal with a panel of farms in the Marne area and will present its results at the Conference.
- European Union budget costs over the multi-annual outlook will be lower than it is today;
- The EU position will remain fully compatible with WTO commitments, similarly to the practices accepted for the United States and other major producing nations.
Momagri’s proposal offers a thoroughly revamped CAP that is very different from its previous versions. As the largest European agricultural producer, France has a special responsibility in the future of the CAP.
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