11

The Regions and Changes to the The Regions and Changes to the CAPCAP

Elements of Analysis and Discussion Elements of Analysis and Discussion Concerning the First PillarConcerning the First Pillar

Study by Marie Imbs –CPMR traineeStudy by Marie Imbs –CPMR trainee

CPMR GENERAL ASSEMBLY

Florence - 18/10/2007

22

ContextContext

•Changes to the CAP are subject to external Changes to the CAP are subject to external and internal influences:and internal influences:- International negotiations at the WTO- International negotiations at the WTO- Internal issues (2008 Health Check, review - Internal issues (2008 Health Check, review of the European budget for 2008-2009, end of the European budget for 2008-2009, end of the financial perspectives in 2013)of the financial perspectives in 2013)

•Adoption of CPMR position concerning the Adoption of CPMR position concerning the First PillarFirst Pillar

33

• Evaluation of the thrust of changes to the First Evaluation of the thrust of changes to the First Pillar that are most likely to meet regional Pillar that are most likely to meet regional interestsinterests

i) How exposed are the regions to possible i) How exposed are the regions to possible changes to the First Pillar?changes to the First Pillar?

ii) Can the regions forge a joint position ii) Can the regions forge a joint position concerning changes to the First Pillar?concerning changes to the First Pillar?

IssueIssue

44

Breakdown of farm support for CPMR regionsBreakdown of farm support for CPMR regions

The breakdown of support is dependent on economic factors and The breakdown of support is dependent on economic factors and production preferencesproduction preferences

Direct Payments and Market Price Support (in €) per farm and according to type (EU-25, 2004)

0

10000

20000

30000

40000

50000

60000

Field crops Milk cattle Beef cattle Sheep,goats

Pigs andpoultry

Mixed crops& livestock

farming

Permanentcrops

MPS

DPs

55

• North/South divideNorth/South divide

• Disparities between Disparities between regions from different regions from different member statesmember states

• Disparities between Disparities between regions within regions within member statesmember states

Breakdown of farm support Breakdown of farm support for CPMR regionsfor CPMR regions

66

A. The importance of the First Pillar when it comes to preserving farming activities varies in different regions• North/South divideNorth/South divide

• Regions with the lowest Regions with the lowest levels of economic levels of economic sustainability: the former sustainability: the former East German Länder, the East German Länder, the British, Finnish and Swedish British, Finnish and Swedish regions, the North/West regions, the North/West quarter of France, Limousinquarter of France, Limousin

The CPMR regions’ The CPMR regions’ economic dependency on economic dependency on

the First Pillarthe First Pillar

77

A. The importance of the First Pillar when it comes to preserving farming activities varies in different regions

• Farms in the North will have little economic Farms in the North will have little economic viability if heavy cuts are made to the First Pillarviability if heavy cuts are made to the First Pillar

• Consequences in terms of income and thus Consequences in terms of income and thus preservation of farming activitiespreservation of farming activities

The CPMR regions’ economic dependency on The CPMR regions’ economic dependency on the First Pillarthe First Pillar

88

The differing levels of support reflect The differing levels of support reflect the diversity of regional farming the diversity of regional farming situationssituations

The CAP does not contribute to The CAP does not contribute to territorial cohesionterritorial cohesion

Are any equalisation systems needed? Are any equalisation systems needed?

Breakdown of farm support for CPMR regionsBreakdown of farm support for CPMR regions

99

• Mutualisation of support through the introduction Mutualisation of support through the introduction of support at of support at regional levelregional level: benefits extensive : benefits extensive farms that have little access to direct support to farms that have little access to direct support to the detriment of intensive farms favoured by the the detriment of intensive farms favoured by the CAP within given regionsCAP within given regions

• Mutualisation of support through the creation of Mutualisation of support through the creation of support at support at national levelnational level: promotes interregional : promotes interregional cohesion. cohesion. Big redistributive effect in member Big redistributive effect in member states where the breakdown of support per states where the breakdown of support per hectare varies widely (Germany, France, Italy and hectare varies widely (Germany, France, Italy and Spain)Spain)

Equalisation systems :Equalisation systems :

Breakdown of farm support for CPMR regionsBreakdown of farm support for CPMR regions

1010

Interest groups established in accordance with Interest groups established in accordance with the regions’ degree of economic viability if the regions’ degree of economic viability if funding support is reduced (internal issue) and funding support is reduced (internal issue) and MPS (WTO issue)MPS (WTO issue)

The CPMR regions’ economic dependency on the The CPMR regions’ economic dependency on the First PillarFirst Pillar

B. Implications for the CPMR: formation of regional interest groups regarding support coming from the First Pillar

1111

1212

• Diverse regional interests, but common approach Diverse regional interests, but common approach to ensure greater inter- and intra-regional to ensure greater inter- and intra-regional cohesioncohesion

• Should the Second Pillar (which complements the Should the Second Pillar (which complements the First) be strengthened by coupling support with First) be strengthened by coupling support with the production of public goods, for example? the production of public goods, for example?

The role of the regions in determining The role of the regions in determining potential environmental servicespotential environmental services

CONCLUSIONS for the CRPMCONCLUSIONS for the CRPM

1313

The Regions and Changes to the CAPThe Regions and Changes to the CAP

Elements of Analysis and Discussion Elements of Analysis and Discussion Concerning the First Pillar Concerning the First Pillar

CPMR GENERAL ASSEMBLY

Florence - 18/10/2007