CAP ideas expected on 29 May 2018

In doing so, he has indicated that he wants the tempo to pick up. It, however, remains unlikely that any decisions will be taken before the European elections at the end of May 2019. This is because the EU's government leaders will probably take more time to deliberate the 2021-2027 EU budget. Brexit, the United Kingdom's departure from the EU, is causing even more uncertainty because much is still unclear.

Cutbacks
Indications in Brussels are that the CAP budget is to be cut by 15% at the most. Member states such as Poland, Lithuania, Estonia and Latvia also want a larger slice of the CAP cake. The argument is that, for instance, a tractor in these countries costs as much as it does in a country like the Netherlands. The hectare premiums in these member countries are, however, about half of those in the Netherlands. The Dutch Federation of Agriculture and Horticulture (LTO) naturally has a counter-argument. They say that agricultural land in the Netherlands is, on average, the most expensive in the entire EU. Dutch minimum wages are also higher than in most other member states. Phil Hogan has, however, already pledged to reduce the differences in payment entitlements per hectare between the member countries. 

The EU Budget Commissioner, Günther Oettinger, will present his proposals for the 2021-2027 EU budget on 2 May. The LTO and the EU farmers/cooperatives organisation, COPA-COGECA, want the CAP budget to, at the least, be kept the same. It is a known fact that the Dutch government wants to cut back on CAP. Ultimately, France and Germany's decisions will be the decisive factors. This may, however, only be known by the end of 2019.

This whole issue surrounding money has given the European Commission (EC) no other alternative but to place more responsibility on the member states. They must set targets that are relevant to them in a 'strategic plan'. The EC will then not cut back on what is due to farmers and growers if something goes wrong. Member countries can, however, be asked to adjust their plans. In extreme cases, a reimbursement may be demanded.

The EC hopes that by doing this, more can be done with less money. It is hoped that targets will better suit each member state and region, and that there will be less need for administrative controls. Physical controls may soon be a thing of the past, thanks to improved satellite technology.

From cross-compliance via greening to "conditionality"
Hogan's idea is that of a basic payout for which basic conditions ("conditionality") apply. This will be a combination of the current "cross-compliance" and possible greening elements, such as crop rotation. There will also be room for 'eco schemes' so farmers and cultivators can earn something extra on the side. This is in line with the LTO's point of view. They want everyone to get a basic payout, with the possibility of top-ups for those who want them. Extra must be done to get these top-ups. The EC's primary concern is climate protection and biodiversity. More information will, undoubtedly, be released in the run-up to 29 May.

For more information:
LLTB
www.lltb.nl

Tsjerk Terpstra
tterpstra@lto.nl

Klaas Johan Osinga
kjosinga@lto.nl