News

The EP's Committee on Agriculture and Rural Development adopted its opinion on the CAP strategic plans on 02/04/2019, supporting the mandatory introduction of a definition of a real farmer; mandatory capping over EUR 100,000 with the possibility of deducting 50% of staff costs; if the allocation for redistributive payments is strengthened to at least 10% of the envelope for the I. pillar, then the possibility for Member States not to introduce capping at all; as for VCS payments, the Committee supported a maximum allocation of 10 + 2% (on a voluntary basis) and 20% on eco-schemes for the first pillar envelope (compulsory). However, during the April vote, a number of MEPs supported alternative proposals that were not approved, but their supporters were re-elected to the European Parliament during May elections - for example, the introduction of mandatory capping of over EUR 60,000 with a maximum deduction of 50% of staff cost (in the first option), or no staff cost deduction (in the second option), redistributive payments should be mandatory under these proposals, Member States should not be allowed to choose between enhanced redistributive payment allocation and capping.

The composition of the European Parliament has changed after the May elections, pro-environment-minded parties have strengthened. According to information from European agricultural NGOs, the Greens are seeking to win the post of a chairman or vice-chairmen of the EP Committee on Agriculture and Rural Development, with the Greens being one of the main supporters of mandatory capping over EUR 60,000 in the past. Similarly, the shadow rapporteur for the April report, Maria Noichl (S&D, DE), stated that in April, the majority of S&D representatives in the Committee voted against the report finally adopted and then she stressed that she would request a revision of the opinion. Noichl said that the new proposal should focus on promoting more environmental and fairer CAP support. Noichl has long been one of the supporters of the mandatory capping of direct payments.

During the General Affairs Council meeting of 18/06/2019, the Council of the European Union published a document about the negotiations on the Multiannual Financial Framework (MFF) post 2020, which includes a chapter on the Common Agricultural Policy. The document does not yet state any specific figures indicating how much the CAP budget should be for the next seven years, a number of data remain in square brackets, i.e. not closed and meant to be discussed further. According to the document, the Council continues to negotiate three options for external convergence - the European Commission's proposal; the possibility of achieving external convergence by 202X; and the possibility of not continuing in external convergence. The Council's position is not yet final even in the case of capping - the latest version of the document states that capping will be implemented on a voluntary basis, with "voluntary" in square brackets again. Capping should not apply to eco-schemes and support for young farmers, the Council's position on this matter is unified so far, the possible inclusion of coupled payments and redistributive payments in capping is still being discussed. The financial reserve should be secured, however it still has not been set. Meanwhile, the Council envisages the possibility of shifting between pillars up to 15%, but this figure also remains in brackets. Document is available here.

A number of Member States (SE, NL, IE, IT, ES, LV) have expressed dissatisfaction with the speed at which MFF negotiations have been conducted under the Romanian Presidency. Budget and Human Resources Commissioner Günther Oettinger urged Member States to conclude a MFF agreement post 2020 until October 2019 in order to implement the new rules from 01/01/2021. In this context, Commissioner for Agriculture and Rural Development, Phil Hogan, supported the Budget Commissioner as well.

The upcoming week, the European Commission's Joint Research Centre (JRC) will publish the final report on the issue of dual quality food on the EU market. According to the JRC's preliminary information, it is confirmed that there are a number of identical brand products with different composition in different Member States in the European Union's single market, but the JRC concludes that this is not only a problem in the eastern EU countries but across the EU. The European Institutions reached an interim agreement on the Consumer Package in April 2019, which also includes a provision limiting the occurrence of dual food quality across the EU.

In its statement of 14/06/2019, Bayer Company promised to spend around EUR 5 billion on research and development of other active substances for plant protection in the next decade. The aim is to offer growers other options for plant protection than currently widespread Roundup. Bayer is also preparing for the case in which the glyphosate use license in the EU would not be extended after December 2022. The latest license extension was approved in 2017. Bayer is committed to reducing environmental impact by 30% by 2030, and to increasing transparency and sustainability.
More information is available here.

The European Food Safety Authority (EFSA) is assessing the safety of chlorpyrifos, a widely used insecticide for, for example, oranges and broccoli. License for chlorpyrifos use in the EU expires on 31/01/2020. According to the results of the EFSA assessment to date, chlorpyrifos is a neurotoxic agent and is therefore hazardous to human health. The final report will be made public by the end of 2019.