Select Committee on Environment, Food and Rural Affairs Third Report


II. PERSPECTIVES ON CAP REFORM WITHIN THE EUROPEAN UNION

3. Across the European Union there are a number of different attitudes towards the CAP. The defenders of the CAP, in more or less its current form, outlined their case in a letter to the Financial Times at the end of September. We also took evidence from one of the co-authors of that letter, Mr Walsh. He made it abundantly clear that his approach to the CAP was different to that of the United Kingdom Government: "we approach this whole matter of farming and agriculture from a slightly different perspective because of the importance [of agriculture] to the overall economy".[10]


CAP is something we can be proud of; A letter to the Financial Times, 23 September 2002

Sir, Certain critics blame many of Europe's difficulties - and the world's - on the common agricultural policy. The media often take these criticisms on board without appropriate detachment.

The CAP is accused of encouraging overproduction. This is not fair. Butter mountains are things of the past. The CAP has been able to control production and at the same time allow ever-increasing levels of imports. The European Union is a big importer of agri-food products. We are far from being "fortress Europe". Storage, when it occurs, is for strictly sanitary reasons or for dealing with limited cyclical situations.

It is also claimed that the CAP, with its emphasis on production, encourages pollution. Let us not forget that, when Europe adopted the model in the 1960s, it was primarily to feed the population of a continent that was not self-sufficient. Production for its own sake is something else. Improvement of Europe's competitiveness came at this price. But today rational agricultural practices are developing and it is more than 10 years since the EU developed agri-environmental measures, confirmed by decisions taken in the context of Agenda 2000. Since the 1992 reform, followed by Agenda 2000, the changeover to sustainable agriculture has been steady, maintaining market competitiveness and contributing to the protection of the rural environment, while seeking to respond better to consumer demands.

It has also been said that the CAP was responsible for the BSE (mad cow disease) crisis. In reality, it was a lack of, rather than excess, European policy that favoured its spread. Quality has continued to improve during recent decades. Food is safer now than 20 years ago. It is consumer reaction that has become stronger and that is good.

It is also widely asserted that the CAP costs Europe too much. But the financial framework agreed in Berlin has been largely respected and support for agriculture amounts to less than 1 per cent of total public expenditure by the EU and member states, compared with 1.5 per cent in the US.

Some also claim that the CAP is responsible for causing hunger in developing countries. Nothing could be further from the truth. Agriculture in some of these countries, particularly in Africa, is primarily concerned with promoting self-sufficiency in food. This is seriously undermined by destruction of traditional agriculture in favour of cash crops, which encourages an increase in imports and in the indebtedness of these states. Production of crops such as cocoa and coffee depends on the markets for primary products, which have nothing to do with the CAP.

Let us stop the false accusations. Let us be justifiably proud of the progress made over the last 40 years. Together we can build a future for our agriculture. We wish to make a constructive contribution that respects the programme agreed in Berlin.

First, let us tackle the problems that exist in a number of production systems and correct the imbalances. Let us also reaffirm that farmers should be able to live on the price paid for their products and to absorb the costs arising from environmental requirements, food safety and food quality. Then let us reconcile farmers and society, a task that needs sufficient numbers of contented producers with confidence in the future to ensure the economic balance of all our territories and to maintain the diversity of our landscapes.

Last, let us put in place an ambitious policy for rural development and agri-environmental incentives that is less bureaucratic and more effective. Above all, let us be proud of building together an agricultural policy that meets our vision for our European civilisation. This is what we call our European model of agriculture, as validated in Berlin.

For us, agricultural products are more than marketable goods. They are the fruits of a love of the land that has developed over many generations. For us, Europe could never be a fortress isolated from the rest of the world. Europe should be proud of its model of rural civilisation, which it should do more to explain and share with others. It has been able to show the way through its "Everything but Arms" initiative, which other countries would do well to copy. Farmers must not become the "variable adjustment" of a dehumanised world. We see them as full participants in our society.

  

Yes, our ambition for Europe is a modern agriculture in which people and the land will play a part. Only by respecting these principles can we give tomorrow's enlarged Europe the agricultural policy it needs.

[Signed:] Fernand Boden, Miguel Arias Canete, Armando José Codeiro Sevinante Pinto, Hervé Gaymard, José Happart, Wilhelm Molterer, Joe Walsh

The above are ministers of agriculture for, respectively, Luxembourg, Spain, Portugal, France, Wallonia (Belgium), Austria and the Republic of Ireland.

4. We put it to Mr Walsh that there were two polar views of the CAP: some saw it through a social prism whilst others saw it in economic terms. He argued that it was necessary to see the CAP through both lenses: "there certainly is a two­pronged approach. One side is that you need commercial farmers and you need them to be able to hold their own internationally ... but at the same time you want to retain traditional or family farms or, as in Europe, multi­functional agriculture ... and they need support and we believe it is important to continue with that support".[11] Lord Whitty also thought that there was a mixture of the two aspects in all countries' attitudes towards the CAP and whilst "the United Kingdom certainly is more inclined to look at market-orientated solutions ... we are also at the forefront of looking at the environmental and broader rural and countryside dimensions", he acknowledged that "we do have to take ... social impacts into account".[12]

5. The British approach is reflected in the overarching aim enunciated by the Government in The Strategy for Sustainable Farming and Food:

    "to promote a competitive and efficient farming and food sector which protects and enhances our countryside and wider environment, and contributes to the health and prosperity of all our communities".[13]

6. The difference of approach is also apparent in attitudes towards modulation and the use of Pillar II payments to support broader rural development objectives. Mr Walsh argued that supporting farming "is a better way" of supporting rural villages and towns and rural communities than modulation.[14] Lord Whitty argued that "provided that the ways in which the modulated money could be spent were sufficiently flexible to meet United Kingdom requirements we would want unilaterally to go down the Curry proposition [of modulating up to 20 per cent of Pillar I payments to Pillar II]",[15] which he described as "trying to modernise and orientate towards the market and make it more environmentally sensitive".[16], [17]



10   Q 153. Back

11   Q 178. Back

12   Q 200. Back

13   Defra, The Strategy for Sustainable Farming and Food, p. 49; http://www.defra.gov.uk/farm/sustain/ Back

14   Q 155. Back

15   Q 251. Back

16   Q 253. Back

17   In August 2001, a Policy Commission on the Future of Farming and Food was appointed, under the chairmanship of Sir Donald Curry. It proposed a "basic 'entry-level' tier" or 'broad and shallow' scheme below the existing agri-environment schemes' stewardship tiers that was open to all farmers to reward them for the environmental goods that they deliver. In order to fund this it proposed that the Government should increase modulation rates to 10 per cent from 2004. Back


 
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