EU CAP Reform 'Health Check' details revealed
Published 22 November 2007

The EU has released details of its CAP reform 'Health Check'. The document is the start of a six-month consultation process looking at the industry after the 2003 reforms to the Common Agricultural Policy and suggesting what needs to be done for the future. The document looks to provide answers to three questions.

1. How to make the Single Payment Scheme more effective, efficient and simple?

It has been suggested that this question can be answered by encouraging member states to move towards flatter payment rates instead of basing payments off historic records. In addition, it was felt that areas such as cross-compliance need to be reviewed to reflect societies' demands whilst striking a balance with the costs of any changes; this included possible amendments to the environmental and agricultural requirements. It has also been suggested that upper and lower limits are placed on support levels.

2. How to allow market support instruments to still be relevant in an expanding EU?

Intervention systems are to be examined to see whether they are necessary in the current market or whether they should become more flexible to adapt to changes. In light of demand for food and biofuels, the EU suggests that set-aside be abolished although further research needs to be conducted on environmental benefits. A 'soft' landing has been proposed for milk quotas before they expire in 2014/15. However, special arrangements need to be made to mitigate negative impacts in certain regions (mountainous areas).

3. How to master new challenges such as climate change, biofuels and water management while continuing with existing challenges such as biodiversity?

In order to meet the increasingly challenging future, it has been suggested that compulsory modulation be increased by 2% in budget years 2010-2013. Issues such as climate change and water management need to be given greater importance, this could be achieved through cross-compliance.

Following public consultation with stakeholders - including two seminars in December and January; the EU plans to submit proposals in spring 2008.