|Paris, March 14, 2017
French presidential campaign - Farm incomes
European budgetary rules allow the introduction
of counter-cyclical support in the CAP
Since the CAP is no longer able to maintain a fair standard of living for many farmers or to stabilize markets, Momagri seeks to advance the conditions to manage risks in the post-2020 CAP.
With a view to stabilize farmers’ revenues in times of price collapses, Momagri has explored the feasibility of using counter-cyclical subsidies and a reduced fixed support1 to replace a portion of the first pillar decoupled subsidies2, which are now perceived as ineffective.
This proposal complies with the European budgetary rules while having a determinant impact on stabilizing incomes3.
In fact, the variability of annual budgets to tackle crisis years does not involve waiving the financial provisions of the European Union Treaties and of the financial regulation, as outlined in the following report (click here to download).
The sole reference to a credit amount not to be exceeded is that of the multi-annual financial framework (MFF).
The modification proposed by Momagri will fully meet such requirement through the mechanisms of tunnel and triggering thresholds to be defined by the budget authority (Council and Parliament).
Lastly, Momagri would like to reiterate the necessary definition of a hierarchy of intervention modes depending on the nature and levels of risks, from private and individual tools to collective systems. Because the instance of the past few years shows that regulating markets is less costly than managing the consequences of crises.
Contact presse :
1 Momagri makes the assumption of keeping a fixed support named “Aid Quality Europe” assessed at €75/hectare in the impact study.
2 For the three grain, milk and oilseed sectors.
3 Impact study in the White Paper “A new strategic course for the CAP”.