Written evidence submitted by the European
Council of Young Farmers (CEJA)
PROPOSAL FOR A YOUNG FARMERS' PACKAGE IN
THE CAP POST-2013
INTRODUCTION
The Communication of the European Commission on the
CAP post-2013 was officially released mid-November 2010. This
Communication develops general guidelines upon which the CAP post-2013
will be developed. In that context, CEJA welcomes the explicit
references to young farmers in the documents and calls for a strong
"Young Farmers Package".
REFERENCE TO
YOUNG FARMERS
IN THE
COMMUNICATION
1. Under the chapter "What are the
challenges", the document recognised that the "Vitality
and potential of many rural areas remain closely linked to the
presence of a competitive and dynamic farming sector, attractive
to young farmers".
2. Under the chapter "Reform orientation"
and under the heading "Rural Development", the
document states that "Addressing
the specific needs of Young Farmers and new entrants
will be a priority".
EXECUTIVE SUMMARY
CEJA calls for an ambitious European policy on generational
renewal in the agricultural sector. The demographic context of
the agricultural sector demonstrates the urgency and need of an
ambitious policy at EU level. Currently only 7% of agricultural
holders are under 35 years old in the EU27 and in some Member
States, the situation is even more critical. At present, one holder
out of three is at least 65 years old in the EU-27 and many will
be retiring in the coming years. This amounts to 4.5 million farmers
over the age of 65.[18]
Access to land, access to credit, difficult predictability
and low profitability are the major barriers to entry for new
comers and young farmers.
In that respect, installation policy needs to be
designed and implemented at EU level, in parallel to an ambitious
European employment policy in the agricultural sector.
CEJA therefore call on decision-makers to introduce
in the legislative framework for the CAP-post 2013 a combination
of measures under Pillar I and Pillar II supporting renewal of
generation in the agricultural sector. In particular:
- Under Pillar I, a top-up payment for young farmers
should be added in addition to direct payments;
- Under Pillar II, measures for young farmers should
be reinforced and re-balanced. The co-financed budget should be
composed of 20% coming from Member States and 80% from EU level.
Preferential access to credit should be given for innovative projects
and projects from young farmers and new entrants.
Young farmers in the new CAP: Combination
of measures under Pillar I and Pillar II
CEJA welcomes the reference made to young farmers
in the Commission Communication on the CAP-post 2013. CEJA also
welcomes the recent declarations made by Commissioner for Agriculture
and Rural Development Dacian Ciolos on the need to better target
active farmers and to design better policies targeting young farmers
and new entrants.[19]
CEJA calls for an ambitious European wide policy
reinforcing the renewal of generations and supporting new entrants
and young farmers in the sector. To achieve such objectives, a
combination of measures under Pillar I and Pillar II is needed.
MEASURES UNDER
PILLAR I
CEJA notes the proposal of the Commission to re-organise
the distribution of direct payments under Pillar I, that would
combine a system of basic income payment and various payments
linked to the situation of the farmer. Such re-organisation of
Pillar I leaves the possibility to include another option, targeting
generational renewal. A specific payment should be designed in
Pillar I targeting young farmers, in the form of a top-up payment
(based on the overall payment) for a limited period of time.
This top-up payment would concretely demonstrate
the commitment of decision-makers to support the renewal of the
generations in the agricultural sector.
CEJA also proposes under Pillar I that Member States
be able to establish at national level reserve which guarantees
to young farmers a "fair" access to the future direct
payments. The aim of the reserve is to facilitate setting up in
agriculture.
MEASURES UNDER
PILLAR II
In the Communication, installation policy remains
part of Rural Development programmes and under Pillar II. CEJA
would like to stress that in many Member States, installation
policy is not implemented, due to lack of national budget or difference
in national priorities. CEJA regrets that the renewal of generations
and young farmers are not considered as a priority by many Member
States and urges decision-makers to voice that installation policy
is a priority at EU scale. In addition, it should be stressed
that installation policy contributes to maintain and develop jobs.
Statistics show that one farmer can create up to eight jobs in
the agro/environmental and technical areas.
CEJA therefore requests that the current situation
be revisited, to guarantee that installation aid is fully used
across the EU and specific needs of new entrants and young farmers
are taken into consideration. Member States should be bound to
accept applications from young farmers for support for investment,
provided that the business plan is accepted by local authorities.
Should Member States refuse to support and provide installation
aid, they should be bound to motivate their choice and report
to the Commission and to Young Farmers' organisations.
CEJA urges decision-makers to introduce a "Young
Farmers package" in the proposal. The Young Farmers package
should be composed of different elements covering financial support,
education and training, support to investment and innovation.
A strong budget under a revisited co-financing
system
A strong budget under the new CAP should be available
for measures targeting renewal of generation and young farmers
entering the sector. A revised ratio of co-financing should be
accepted, so as to give a real opportunity to Member States to
prioritise renewal of generation. A ration of 80% coming from
EU level and 20% from national level should replace the current
50/50.
The capping of installation aid should also cease.
In some Member States, only part of the 70,000 euros are made
available to young farmers and the amount is capped; this situation
is not acceptable and the amount of aid should be available to
all, in the "old" as in the "new" Member States.
Bound Member States to use existing programmes
Member States should be bound to use existing funds
available under Rural Development programme. In the latest programme
covering the period 2009-13, financial engineering funds have
not been fully used. Concretely it means that some agricultural
funds are lost and will not be used to support actions under the
various axes of rural development funds. CEJA therefore calls
to make mandatory the use of such funds, with a priority for young
farmers. In addition, CEJA calls Member States to include installation
policy as priority in their national rural development plans they
submit to the Commission. These plans should be available to national
young farmers' organisations which should have the possibility
to question the validity and relevance of the national programmes.
Strong support to investments for innovation,
competitiveness and clusters
Installation aid should include a preferential access
for young farmers to investment funds available under Rural Development.
Subsidised loans should cover 80% of the investments made by young
farmers or new entrants when linked to innovation, investment
in production materials and methods as well as 80% of investments
associated with buying land (provided that there is a business
plan). Subsidised loans should also be made available for young
farmers and new entrants entering into cooperation, clusters or
network to better market their products.
Accompanying measures for young farmers over
a certain period of time
The installation aid could be given when the young
farmer starts his business. However, if he/she prefers to receive
the aid gradually, over five years, this option should also be
possible. This option will support the young farmer during the
first years of his/ her business project.
Education and training vouchers
Installation policy should be seen as far-reaching
and comprehensive to support the renewal of generations in agriculture.
It should therefore also include "knowledge vouchers",
to be used by young farmers, on their own demand and according
to their own needs. These vouchers could be used for advisory
services including training for new methods of production, diversification
on the farms, phytosanitary training, direct selling and marketing
training, etc. Advisory services should be implemented as soon
as a certain quotas of requests from young farmers have been registered.
The "Young Farmers" package should also
include a European training programme for young farmers, including
the possibility to do a traineeship abroad. This could take the
form of a specific "Erasmus for Young Farmers" programme
available to young farmers before they take over a farm and enter
the business.
Faster and better access to information
Young farmers should have faster and better access
to information regarding rural development funds. For example,
in steering committees, Young farmers' organisations should be
systematically represented. In addition, applications sent to
Member States from young farmers to receive support for investments
should be examined as priority cases by the Member States, and
young farmers should be able to receive a clear answer in a short
time.
Early retirement scheme
The early retirement scheme, linked to installation
of young farmer and/or new entrant should continue under the CAP
post-2013 as it has proved critical to support farm takeover and
transfer of land to young farmer(s).
CONCLUSION
The demographic situation of the agricultural sector
in Europe should give great concerns to decision-makers. While
on the average, only 7% of farmers are under the age of 35 years
old, the situation is more dramatic in some Member States. Without
a strong ambitious European-wide policy supporting the renewal
of generations, the EU runs the risk to confront itself with difficulties
to achieve food security, territorial balance and improve the
vitality of rural areas, as well as preserving the environment
and mitigating climate change.
CEJA therefore calls on decision-makers to introduce
a combination of measures under Pillar I and Pillar II for young
farmers and new entrants
November 2010
18 Eurostat (2009), "Agricultural statistics Main
results-2007-08" , Agricultural holders under the age of
35 Back
19
Discussions between Commissioner Ciolos and Italian Young Farmers
at the Salone Del Gusto, Torino, Italy, 21 October 2010. Back
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