Sotiris Koutsomitros1
Common agricultural policy 2014 – 2020 Impacts on horticulture
Sotiris KoutsomitrosAgricultural-Engineer MSc Environmental Engineer MSc
Directorate of Agricultural Policy Min. Rural Development & Food
Sotiris Koutsomitros2
Contents
Status Quo
The configuration of the CAP for the next period (2015-2020)
Direct Payments as a safety net
Focusing on rural development
Effects on horticulture
Agricultural income index exercise
Values 2012 and 2013, in mio Euro
Item area (Ha) Production (tn)
Value 2012
Value 2013
CEREALS (including seeds)
990.290 4.284.214
- value at producer prices 1011,39 1053,75
INDUSTRIAL CROPS 434.618 1.447.245
- value at producer prices 543,84 640,86
FORAGE PLANTS
- value at producer prices 459,60 449,86
Item area (Ha)Production
(tn)Value 2012
Value 2013
VEGETABLES AND HORTICULTURAL PR/cTS 93.220 3.228.000
- value at producer prices 1514,35 1496,80
FRUITS 289.238 2.866.927
- value at producer prices 2036,21 1804,29
OLIVE OIL 829.695 1.793.522
- value at producer prices 739,56 728,81
CROP OUTPUT (01 TO 09)
- value at producer prices 2.637.061 13.619.908 6514,44 6464,26
Agricultural income index exercise
Item Value 2012 Value 2013
AGRICULTURAL GOODS OUTPUT
- value at producer prices 9364,22 9199,55
TRANSFORMATION OF AGRICULTURAL PRODUCTS
- value at producer prices 780,29 780,33
OUTPUT OF THE AGRICULTURAL ‘INDUSTRY’
- value at producer prices 10549,66 10386,20
GROSS VALUE ADDED AT BASIC PRICES 5499,88 5318,12
FIXED CAPITAL CONSUMPTION 2021,92 2205,90
NET VALUE ADDED AT BASIC PRICES 3477,96 3112,23
Fruit & vegetables
AREAS (Ha)Production
(tonnes)
OPEN AIR VEGETABLES90.133 2.932.759
GREENHOUSE VEGETABLES3.435 266.239
FRUITS 289.238 2.866.927
OLIVE OIL 829.695 1.793.522
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
area (Ha) Production (tn) value 2012
open air veg. greenhouse veg fruit olive oil
Sotiris Koutsomitros8
Direct Payments : Status Quo
Direct payments Mio EURO Percentage
Coupled payments livestock 35 1,46%
Coupled payments crops 31 1,30%
Special payment for cotton 186 7,78%
Single payment on land 2.049 85,73%
Special entitlements 89 3,72%
total 2.390 100,00%
Livestock 19%
Crops 81%
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Mal
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Net
herla
nds
Belg
ium Ita
ly
Gre
ece
Cyp
rus
Den
mar
k
Slov
enia
Ger
man
y
Fran
ce
Luxe
mbo
urg
Irela
nd
EU-2
7
Aust
ria
Hun
gary
Cze
ch R
epub
lic
Finl
and
Swed
en
Bulg
aria
Spai
n
Uni
ted
King
dom
Pola
nd
Slov
akia
Portu
gal
Rom
ania
Lith
uani
a
Esto
nia
Latv
ia
EUR/ha
DP new distribution (EUR/ha)** DP status-quo (EUR/ha)*
EU-27 average (EUR/ha) 90% of EU-27 average (EUR/ha)
Convergence in the EU
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Legal texts
Direct Payments
Rural development
Common market organisation
Horizontal Regulation (common obligations for all
regulations: cross-compliance, IACS, Advice, penalties and
sanctions)
New Architecture for Direct Payments•
Cro
ss C
om
pli
ance
or
Basic Payment• New rights in 2015• Minimum
agricultural activity
• National or regional flat rate per hectare
• Regions according to objective criteria
Greening
• Crop rotation (>10Ha)• permanent pasture• eco focus Area
(>15Ha)
• 30% either by region or by the national ceiling
Young Farmers
• Up to 2% • < 40 years
• For 5 years from the start of activity
Small Farmers
• Simplify applications and controls
• up to 1250 €/year• direct entry in
2015• Greece: 350.000
farmers (50%)
Coupled Payments• Up to 8% or 10%
Natural Constraints areas• Up to 5%
Active Farmer
Redistributive Payment
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Payments On the field
59%
30%
7%
0%
20%
40%
60%
80%
100%
NaturalConstraintsYoung Farmers
CoupledPaymentsGreening
Basic Payment
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Active farmer
Non-agricultural activities are not the main economic activities of the
company (direct payments at least 5% of total income or agricultural
income at least 1/3 of total income)
Observes the minimum activity (fixed by the MEMBER STATE) on the
field
Pastures : grazing density?
Arable: ploughing?
Orchards: Pruning or weed control???
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Small Farmers
Total payments in 2015 up to 1250 €/year
Exemption from greening and cross compliance
Obligations: Preservation of agricultural land and their nature
Entry only in 2015 – farmer's decision to Exit at any time
Major reduction of administrative burden for Greece (350,000
holdings)
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Greening
• 30% for 3 mandatory measures depending on the type of land, with a penalty of at least 45%:
• 1. Maintain permanent pasture
• 2. At least 2 crop rotation with maximum 75% coverage per cultivation in holdings with arable land from 10Ha and over
• 3. Eco focus area 5% MORE THAN 15Ha, including elements of the landscape for arable land
• Organic farming = green
• EXCLUSIONS: legumes, rice, plantations
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Young Farmers
25% bonus up to 25 hectares
40 years age
Up to 5 years from the establishment of the holding
Up to 2% of the budget
1% covers 8800 young farmers
Sotiris Koutsomitros17
Natural Constraints areas
– Optional – up to 5% of the national ceiling – Target all or some of the areas with natural handicaps as
defined by Member States on the basis of article 33 (1) of the new Rural Development (not necessarily mountainous and disadvantaged)
– annual payment per hectare– Useful for replenishing income for some groups of
farmers– Possibility to transfer funds between the pillars
Sotiris Koutsomitros18
Redistributive Payment
Optional for Member States, up to 30% of the national
ceiling
Cut from everyone and benefit the «first» hectares as
additional value
First hectares: up to 5 hectares for Greece
In Greece the application may benefit part time farmers at
the expense of full time farmers
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Rural development measures
Setting up producer groups Short supply chains Farm advisory Specific subprogram for small farms and Knowledge and information transfer actions risk Insurance management Innovation Environment
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Basic and Green payments
New entitlements for 2015 :
1. 1 entitlement per hectare
2. Either Greece as 1 region, or, Separation of pastures and croplands
Pastures are common land and much cheaper than crop land
3. Convergence to a flat rate per hectare of the same region in 2019
4. The value will depend on the decision for the regions
5. National Reserve (newcomers and new farmers)
6. All farmland will be covered
7. More vegetables and fruits covered
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Coupled payments
Deficit in the trade balance (meat)
Food security (cereals)
Sustainability of the sector if dependant on primary
production (sugar)
Complementarity of actions (feed stuff)
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Direct payments for development
Basic Payment and Greening = guaranteed minimum income
Income Maximization from the market and economies of scale with
collective organization (groups/chain)
Minimizing trade deficit through coupled payments
insert new capacity by strengthening farmers' increased effectiveness
Internal convergence = mitigation effects and Rural Development
Measures
reaction time for actual development
Impacts and trends on horticulture
Market orientation Increase of land with vegetables Fruit increase? Direct Payments = safety net Target: Added market value Cost limitation through collective actions Logistics cut Market orientation – Market access
Sotiris Koutsomitros24
Thank you!!!
Infohttp://www.minagric.gr/index.php/el/the-ministry-2/agricultural-policy/
koinagrotpolitik/1194-kapfuture
http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/index_en.htm
http://www.agrotikianaptixi.gr/rdpost2013/
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