The Common Agricultural Policy after 2013 - Environment, Food and Rural Affairs Committee Contents


Written evidence submitted by The Royal Society for the Protection of Birds (RSPB)

1.    The RSPB welcomes the opportunity to respond to the EFRA committee's enquiry into the European Commission's proposals for CAP reform after 2013.

EXECUTIVE SUMMARY

2.    The current CAP reform round offers a clear opportunity to realign the policy with societal expectations and respond to a suite of environmental challenges.

3.    The CAP must build on previous positive reforms to tackle challenges of sustainable land management, long term food-security and farm business competitiveness by evolving into a policy underpinned by a "public money for public goods" approach.

4.    The European Commission proposals for reform contain some positive elements but still fail to present a clear vision for the future of the CAP.

OVERARCHING COMMENTS

5.    The RSPB has a long history of involvement in CAP reform. We have been instrumental in the development of agri-environmental schemes, and Environmental Stewardship in particular, and making the case for a transfer of funds, and policy emphasis, from Pillar 1 to Pillar 2.

6.    In run up to the current reform period, we have joined forces with a range of environmental and farming stakeholders to call for a shift to sustainable land management[1], set out principles for a new policy[2] and make specific proposals for the CAP after 2013[3].

7.    Recent CAP reforms have contained some positive elements, particularly the creation of a second pillar, decoupling of subsidies from production and cross compliance.

8.    Many of these changes signalled a shift away from outdated support mechanisms, with decoupling in particular introduced as a transitional process. The destination urgently needs to be spelled out. Without a clear route map, farmers are poorly equipped to make the necessary business adjustments and are less likely to "buy-in" to the reform process.

9.    Whilst there is room for simplifying all elements of the policy, both to reduce bureaucratic burden for landowners and to improve the policy's efficiency, there must be no erosion of principles which improve the accountability of the policy for citizens.

10.  To meet future challenges, we propose that the CAP needs to help underpin global food security, enable farmers to run profitable and market-focussed business, propel a rapid transition towards more sustainable land management and reward the provision of environmental public goods where these are underprovided.

11.  Direct payments are a wasteful and inefficient way of doing this - indeed, a recent study[4] suggests the Single Payment Scheme is impeding moves in this direction. The SPS does not encourage farmers to take a long term view, it is not linked to public goods nor is it securing sustainable land management - and studies suggest it has little impact on food production. Therefore what is it for?

12.  We want to see a phasing out of the current SPS system. This would provide an opportunity to temporarily target a proportion of CAP support toward measures which boost the competitiveness of farming in a non-environmentally damaging way eg improving farming's return from the food chain through added value products, savings through resource efficiency etc; along with the ongoing support to farming for environmental public goods.

13.  Improved resources for Rural Development and a re-focussing of support towards environmental and climate change objectives, if implemented soundly, would go a significant way to addressing issues of resource degradation and biodiversity loss in Europe. A retargeting of support towards environmental objectives would also need to address the pressing issue of High Nature Value farming, which is in rapid decline in much of the EU, and the Natura 2000 network of protected sites, many of which depend of sensitive farming methods.

14.  Well designed and funded environmental support schemes must form a key component of the CAP after 2013 and the success of agri-environment schemes in the UK needs to be built on in the future CAP. The vast majority of land in England is now in an agri-environment scheme, and by committing to provide public goods in this way farmers can guarantee a basic level of income over five years, providing a degree of security against volatility without becoming dependent on income support.

THE COMMISSION OPTIONS FOR REFORM

15.  At present, none of the options presented by the Commission provide a vision for the future of farming and land management in Europe or a clear set of reform objectives for the CAP.

16.  Option 1 suggests little more than a further "Health Check" of the CAP and as such would fail to respond to societal expectations for reform or to address the suite of challenges facing the farming sector. The UK government should strive to ensure this limited reform option is rejected during forthcoming negotiations.

17.  Option 2 contains some positive steps towards greening of the CAP, particularly the new and compulsory greening payment under Pillar 1, which is conditional on some potentially beneficial management approaches such as crop rotation and fallow land. However, despite some environmental improvements, the majority of payments and support structures proposed under Option 2 have dubious rationale. Four of the five direct payments proposed have no environmental dimension beyond cross compliance and the payments proposed for small farmers, marginal areas and coupled support could be implemented across the EU in ways which negatively impact the environment and UK competitiveness.

18.  We believe that the Commission's Option 3 for reform, which is explained in more detail in the Commission's impact assessment document[5], has considerable, but as yet untapped, potential to provide a clear, justifiable and sustainable vision for CAP reform. This could be achieved through a transitional phase out of the SPS systems with improved support for EU farming competitiveness and a "public money for public goods" approach underpinning all payments.

19.  The current reform period offers a golden opportunity to reorient the CAP and clarify its objectives. If this is not grasped, not only will the opportunity to realign the policy with societal expectations be missed, the likely €200 billion in CAP payments to 2020 could also be wasted.

THE BALANCE BETWEEN PRODUCTIVITY, COMPETITIVENESS AND SUSTAINABILITY

20.  At a recent address to the European Parliament[6], Agriculture Commissioner Ciolos made it clear that the concept of agricultural competitiveness must be updated to end the "false conflict" with sustainability. Clear economic signals must be given to farmers to fully integrate the environment into their activities. These words are a positive indication that genuine greening of the CAP is being considered by the Commission as part of the Lisbon agenda.

21.  Any CAP reform scenario that is not explicitly linked to environmental public good delivery and improved sustainability would not only represent a missed opportunity to tackle environmental degradation across the EU but could also threaten UK competitiveness by allowing Member States to target support at domestic sectors or re-couple support within their borders. This would run counter to the common aspect of the CAP, erode the level playing field for farmers, and could even produce negative consequences if intensive sectors are targeted for support.

22.  Globally, EU agriculture needs to focus on competitive advantage in high value and added value products. The UK, as part of the EU, should further develop this competitive advantage, part of which is the appeal of products from systems with higher environmental standards eg organic, LEAF marque and Conservation Grade. The delivery of environmental public goods must be seen as a key part of UK agricultural competitiveness and not a burden or incidental by-product.

THE MOVE AWAY FROM THE HISTORIC TARGETING OF PAYMENTS

23.  The distribution of the considerable CAP budget must be viewed objectively. We must move beyond the view of many Member States that "who gets what" is the most important issue. Instead, it is the issue of "who gets what for what" that the next CAP must address.

24.  There is a clear case for policy intervention, through the CAP, to secure environmental delivery due to the market failure to reward many environmental public goods. The CAP must target support at the systems of farming which deliver high levels of environmental benefit (such as High Nature Value farming) and facilitate the uptake of more sustainable farming practices (including agri-environment schemes).

25.  A 2009 report[7] produced for the Land Use Policy Group estimated that £1-3 billion would be required each year to meet publicly defined environmental objectives through agri- environment schemes in the UK. This is considerably less than the current Pillar 2 allocation for the UK but comparable to the CAP allocation as a whole.

THE ROLE AND VALUE OF CAP PAYMENTS IN ADDRESSING FUTURE FOOD SUPPLY CHALLENGES

26.  The 2009 "Scenar 2020" study[8] identified that in the absence of direct payments, food production in the EU would actually increase. There is no explicit food production link (perhaps unsurprising given the decoupling of payments as part of the 2003 CAP reforms) and therefore any argument that direct payments contribute to EU and global food security by underpinning farming is incorrect.

27.  Food security is a critical issue but at core rests upon the long-term productive capability of EU farming through protection and enhancement of natural resources - a sentiment shared by a recent Institute for European Environmental Policy study[9]. This justifies a shift away from untargeted direct payments in the CAP to payments in return for environmental public good delivery.

28.  A recent LUPG report[10] highlights the "added-value" of a common EU policy to tackle environment issues and justifies reforming the CAP along such lines.

TIME-SCALE FOR REFORM

29.  The RSPB is calling for fundamental CAP reform but we recognise there must be a sensible transition period for farmers. Unfortunately, the Commission document fails to articulate a transitional period as there is no clear picture of what the CAP will ultimately evolve into.

30.  Farmers and land managers must have a clear direction of travel in order to make the necessary business adjustments and ensure sufficient "buy-in".

31.  There is an urgent need for more clarity and ambition from the Commission and for Defra to launch a renewed vision for CAP reform to energise the debate.

December 2010


1   Beyond the Pillars: Wildlife and Countryside Link's policy perspective on the future of the CAP (2008) Back

2   Proposals for the future CAP: a joint position from the European Landowners' Organization and BirdLife International (2009) Back

3   Proposal for a new EU Common Agricultural Policy (2010) BirdLife International, European Environmental Bureau, European Forum on Nature Conservation and Pastoralism, International Federation of Organic Agriculture Movements- EU Group and WWF - World Wide Fund for Nature. Back

4   Report for the European Parliament's Committee on Agriculture and Rural Development (2010) The Single Payment Scheme after 2013: New approach-New targets. IP/B/AGRI/IC/2009_038 Back

5   European Commission The reform of the CAP towards 2020: Consultation document for impact assessment Back

6   Réformer la Politique Agricole Commune, c'est faire un choix de Société. Discours à la Commission de l'Agriculture et du Développement rural du Parlement Européen Bruxelles, le 18 novembre 2010 Back

7   CAO et al (2009) Estimating the Scale of Future Environmental Land Management Requirements for the UK. Report to the Land Use Policy Group. ADAS UK Ltd and Scottish Agricultural College.  Back

8   Nowicki et al (2009) Scenar 2020-II - Update of Analysis of Prospects in the Scenar 2020 Study - Contract No. 30-CE-0200286/00-21. European Commission, Directorate-General Agriculture and Rural Development, Brussels. Back

9   Cooper, T, Hart, K, and Baldock, D. (2009) The provision of public goods through agriculture in the European Union. Report prepared for DG Agriculture and Rural Development. Institute for European Environmental Policy, London Back

10   Tamsin Cooper, Håkon By and Matt Rayment (2010) Developing a More Comprehensive Rationale for EU Funding for the

Environment. Paper prepared by IEEP for the Land Use Policy Group Back


 
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Prepared 14 April 2011