EU Bioeconomy Economics and Policies: Volume I by Liesbeth Dries & Wim Heijman & Roel Jongeneel & Kai Purnhagen & Justus Wesseler

Author:Liesbeth Dries & Wim Heijman & Roel Jongeneel & Kai Purnhagen & Justus Wesseler
Language: eng
Format: epub
ISBN: 9783030286347
Publisher: Springer International Publishing

9.5.9 Further Reforms

The core element of the reform process of the CAP has been the shift from product price support to producer income support. It has become more market-oriented and less reliant on the management of markets than before. Market instruments are used to provide market safety nets, but intervention prices are set at low levels which ensure that they are only used in times of real crisis. In terms of achieving more market orientation, the Health Check agreement of 2008 resulted in fewer and simpler market instruments. The remaining coupled payments were decoupled. The only (but important) exceptions are for the suckler cow, goat and sheep premia, where Member States may maintain coupled support. In addition, MSs were allowed to use part of their national envelope for direct payments for coupled support in certain clearly defined cases (Direct Payment Regulation (EU) 1307/2013, Art. 52–55). An example is the VCS for sugar.

The objective of past reforms to enhance the market orientation of EU agriculture is continued by adapting the policy instruments to further encourage farmers to base their production decisions on market signals. Competitiveness is addressed directly by changes to market mechanisms, particularly the removal of production constraints. All of the restrictions on production volumes for sugar, dairy and the wine sector have been ended.

Promotion campaigns about EU farm products are designed to open up new market opportunities for EU farmers and the wider food industry, as well as for helping them build their existing business. EU funding—rising from €142.5 million in 2017 to €188.5 million in 2018 and €200 million in 2020—can be used for information and promotion initiatives in EU Member States and countries outside the EU. The 2019 work programme focuses on campaigns aimed at non-EU countries with the highest potential for growth such as Canada, Japan, Mexico and Korea. Within the EU itself, the EU will co-finance campaigns designed to promote the different EU quality schemes and labels (organic, protected designation of origin [PDO], protected geographical indication [PGI], traditional speciality guaranteed [TSG], product of EU’s outermost regions).

Applicable since the 1 August 2017, the school fruit, vegetables and milk scheme combines the two previous schemes (school fruit and vegetables scheme and school milk scheme). The total EU budget for the scheme is €250 million per school year, with €150 million for fruit and vegetables and €100 million for milk.

The Omnibus regulation (EU Regulation 2017/2393), endorsed on 16 October 2017, amends the financial regulation governing the implementation of the EU budget and 15 sectorial legislative acts, including agriculture. The Omnibus regulation for agriculture brought several changes in the implementation of the Common Agricultural Policy, aiming to simplify the implementation of the policy.

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