New developments for the CAP that will be 2014-2020

New developments for the CAP that will be 2014-2020

New developments for the CAP that will be ... 2014-2020

Montepulciano DOCG vine grown in awning-Abruzzo January 2013


The level of aid currently disbursed (250 - 350 euros / ha) in fact constitutes an interesting income for a company that has gone out of business and that does not have to face production costs, while it appears very little relevant for a company that has made investments, which it takes up manpower, and that must balance costs and revenues. The current CAP is not functional with respect to the needs of European consumers who ask for reasonable prices and above all adequate to a quality of raw material; it fails to affect the unstoppable growth of prices from the producer to the consumer and on the other hand does not provide suitable rules to ensure a clear recognition of the quality of food.

Over the past 10-15 years, the process of strengthening quality standards has stalled. Traceability remains a utopia for most products and this scenario cannot be considered satisfactory for Italian producers and consumers: the reform must be an opportunity to strengthen the rules.

Financial aid is currently provided to farms even if they no longer produce (decoupling) but no adequate form of aid is provided in the event of a market crisis.


The Commission proposes a reform process aimed at commensurate the aid granted exclusively according to the farm areas. Thus all references to the work, the product made, the characteristics of the company and the skills of the farmer disappear. The surface remains the only parameter for the subsistence of aid and one hectare of abandoned heath has the same relief as one hectare of specialized horticulture. This is an unacceptable approach from an economic and ethical point of view! The CAP cannot forget the essential elements of agricultural activity which is primarily made up of a producer and a product. It is through agriculture that it is possible to achieve that indispensable balance between living communities and terrestrial biodiversity. A commitment will be to implement the proposed regulation on rural development which provides for the transfer of know-out which is the first of the 6 priorities pursued which provides for particular attention to the promotion of human capital and innovation and to the creation of more stable relationships between companies, consulting and research.

The current programming

In the current programming phase, rural development policies have already initiated some important interventions in this sense as Axis I, relating to the competitiveness of agriculture, includes financial support for the establishment of the Farm Advisory System at each Member State of the European Union, both by reimbursing agricultural businesses that use their skills (Measure 114), and by financing those who intend to start a business advisory activity (Measure 115). The transfer of knowledge and innovations is encouraged through the promotion of training and information activities aimed at entrepreneurs (Measure 111) and the reimbursement of expenses incurred to establish partnerships between research institutions and enterprises (or their organizational forms) with the aim of testing relevant innovations (Measure 124). Although these interventions had the merit of resuming a process of support for knowledge issues left in the shadows in the period 2000-2006, they did not provoke the desired transfer effects of innovation due to the following limitations:

  1. the fragmentation of the actions and their lack of aggregation around common objectives have meant that the training and information, consultancy and innovation testing activities have been aimed at different purposes, enhancing their impact - the imposition by the offices of the Commission to concentrate primarily the contents of the advisory system to support businesses on the issues of cross compliance;
  2. the complex and costly procedural process relating to the assignment of reimbursement to companies that use the consultancy (call for accreditation of consultancy providers and call for consultancy requests from companies) for a rather small contribution (max € 1,500);
  3. a process of initiation of the Measures slowed down by numerous appeals by the professional registers of experts and agronomists who have asked to be considered the only interlocutors of the Consultancy Measures. innovation and research) have been activated by all the Regions that have foreseen them in their PSRs, but show a low level of implementation and a low amount of expenditure. A network of comparison and discussion between the Regions and the Ministry was created through the creation of the National Rural Network (NRN) which monitored the implementation of the Measures relating to the transfer of knowledge, highlighted the problems, proposed possible corrective actions and, above all, , identified desirable improvements in the subsequent programming phase. All the summaries of the analysis of the proposals were sent to the European Commission through some notes of the Ministry and in the context of European meetings aimed at verifying the implementation of the Farm Advisory System and other related Measures.

Priority points

In general, the 2014-2020 EU budget will almost certainly be divided into the following points:

1. Inclusive and smart growth (47.9%)
It includes some items relating to the development of competitiveness and infrastructures such as those of Research and Innovation, Education and Human Capital;

2. Sustainable growth - natural resources (37.4%)
This point is almost entirely dedicated to the CAP (I and II pillar), to which are added, Pesca and the Life Program; it is the only section for which a reduction in expenditure is envisaged;

3. Security and citizenship (1.8%)
It is a point of strong growth, albeit with a low financial endowment, which includes Migration, Internal Security, Citizenship, Justice, Consumer Defense, Food Security, Creative Europe;

4. Global Europe (6.8%)
It collects a series of items dedicated to the management of the EU's international position, such as Pre-accession and neighborhood, Stability, Security, Partnership, Humanitarian Aid, Development Cooperation;

5. Administration (6.1%)

The interventions proposed for the post-2013 CAP In the programming period for the 2014-2020 reform, the promotion of knowledge and innovation in agriculture concerns at least three distinct but connected initiatives:
- Member States are required to have a business advisory system at all times which has as its fundamental purpose the technical support to companies for the implementation of the new agricultural policy guidelines, but broadens the objectives and contents that range from conditionality to the agricultural practices necessary to have access to a share of direct payments (greening), to the new challenges envisaged in the Health check up to the sustainable development of small farms;

- the community budget foresees a specific chapter for agricultural research of about 4.00 billion euros which will be managed according to the rules of the Research Framework Programs;

- the rural development regulation, has as a priority basis the exchange of know-out and concentrating in a single common role of all the Rural Development Plans itself and allows a systemic homologation of the Measures concerning consultancy, services and innovation so that they can respond to objectives common. An important novelty of the rural development regulation concerns the establishment of the European Innovation Partnership (EIP), a new community institution that aims to:

  1. promote an efficient and low environmental impact agricultural sector;
  2. help provide a constant supply of food, feed and biomaterials;
  3. promote processes and programs that positively influence the negative effects of the continuous variation of climatic conditions;
  4. intervene on the enhancement of the strengthening of relations between research, technology, agricultural enterprises and technical consultancy services. For the implementation of these programs, the EIP will make use of a European network which will act as a support to the European Rural Network and operational groups active in the Member States with exponents of businesses, consultancy and research. With regard to the operational methods with which the intervention measures provided for by the new regulation must be implemented, they have been defined in agreement with the needs and requests presented to the Commission by all the member states.

Montepulciano DOC vine grown in a canopy - Abruzzo January 2013

The main ones relate to:

1. the user: the users of the interventions are increased and diversified; reference is made to agricultural entrepreneurs, forestry entrepreneurs, small and medium-sized enterprises engaged in rural areas, and land managers;
2. the beneficiaries: the recipients of the loans are the subjects who provide the transfer or consultancy to the companies and not the entrepreneurs, thus simplifying the administrative procedures;
3. the interventions: many more tools are foreseen for the implementation of the interventions compared to the previous programming period; in fact, the training courses are accompanied by workshops and internships, demonstrative tests, exchanges on company management and company visits, information activities; moreover, the consultancy can also be provided by groups of companies;
4. the donors services: the regulation repeats several times that the subjects that provide services must demonstrate that they have adequate qualifications and suitable human and instrumental resources;
5. role of the Commission: the Commission reserves the power to issue subsequent acts relating to eligible expenses and the characteristics of the service providers. To ensure more targeted support for production, at the request of the states, the Commission proposes to divide the current single company payment into segments into more selective and dedicated components:

  1. basic payment;
  2. ecological payment (greening);
  3. disadvantaged areas;
  4. young farmers;
  5. small farmers;
  6. coupled payments for strategic productions.

A very interesting proposal is that of limiting the context of CAP beneficiaries only to active farmers to avoid that the support goes to subjects who are not actually the protagonists of the direct developments in the sector. In order to pursue a more equitable support, the Commission intends to improve the distribution of payments with a mechanism of progressive penalization of those with higher amounts than all the others.

In conclusion, for the CAP and for cohesion policies, the budget on the EU budget is reduced against a growth in items such as research, innovation and human capital. trend of increase of the financial endowment of the II pillar that has occurred in the last 15 years

Dr. Antonella Di Matteo

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