Future of the common agricultural policy (CAP)

SUMMARY OF:

Communication (COM(2017) 713 final) — The Future of Food and Farming

Article 39 of the Treaty on the Functioning of the European Union (TFEU)

Article 40 of the Treaty on the Functioning of the European Union (TFEU)

WHAT IS THE AIM OF THE COMMUNICATION AND OF ARTICLES 39 AND 40 TFEU?

The communication:

aims to stimulate a wide-ranging debate on ways to simplify and modernise the common agricultural policy (CAP) after 2020.
emphasises the need for simpler rules, greater flexibility and a stronger contribution, working alongside other EU policies, to tackling the socio-economic challenges resulting from climate change, environmental protection and sustainable farming.

Article 39 TFEU sets out the CAP’s objectives which aim to:

increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour;
ensure a fair standard of living for farmers;
stabilise markets;
assure the availability of supplies;
ensure that supplies reach consumers at reasonable prices.

Article 40 TFEU introduces the common organisation of agricultural markets in order to attain the CAP’s objectives. Depending on the product concerned, this common organisation can take several forms:

common rules on competition;
compulsory coordination of the various national market organisations;
a European market organisation.

KEY POINTS

The communication outlines ideas for the future of food and farming, such as:

The EU moves away from the current ‘one-size-fits-all’ approach. Instead, it sets the general EU policy objectives, while individual EU countries decide what the specific targets should be and how to meet them.
Rather than on compliance, attention will be paid to ensuring that funding is focused on results.
Each country draws up a CAP strategic plan which the European Commission approves to ensure policy coherence across the EU.
Existing rules should be made simpler and bureaucracy reduced.
Support for farmers will continue through the system of direct payments which will be more fairly distributed and better targeted.

The future CAP should:

encourage smart* and resilient* farming, ensuring food security through greater use of modern technologies;
strengthen and contribute to the EU’s wider environmental, resource efficiency and climate goals;
support the social and economic life of rural areas by providing jobs, attracting new farmers to the profession and encouraging local authorities and agencies to fully develop an area’s potential;
ensure the European public continues to have access to safe, high quality, affordable and nutritious range of food.

Other ideas include:

support for Smart Villages to develop broadband connections, and sustainable and good quality jobs;
EU-wide financial support to help new farmers with their initial capital costs and uncertain income;
improving advisory services and promoting knowledge and innovation in agriculture and rural areas;
commitments to ensure the modernised CAP will contribute to the United Nations’ sustainable development goals, further trade liberalisation and efforts to tackle the root causes of migration, particularly from Africa.

BACKGROUND

The CAP is the oldest EU common policy. Since 1962, it has been reformed several times to adapt to new challenges and the changing European and global environments.

The Commission launched a public consultation on the future of the CAP in February 2017. It received over 320,000 replies within the 3-month consultation period. These showed strong support for the policy, but also a wish for it to be simpler, more flexible and more focused on ensuring fair income for farmers and tackling environmental and climate challenges.

The Commission looked to introduce draft legislation to modernise the CAP in the first half of 2018 after it presented its multiannual budget proposals for EU spending from 2020 onwards.

For more information, see:

The Future of Food and Farming — for a flexible, fair and sustainable Common Agricultural Policy — press release (European Commission).

KEY TERMS

Smart farming: ensuring that the EU’s agriculture sector is equipped to address the issues it faces by means of education, research and innovation.

Resilient farming: ensuring the farming sector is able to adapt to changing circumstances and challenges while maintaining its core functions, including the delivery of their vital goods and services.

MAIN DOCUMENT

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — The Future of Food and Farming (COM(2017) 713 final, 29.11.2017)

Consolidated version of the Treaty on the Functioning of the European Union — Part three — Union policies and internal actions — Title III — Agriculture and fisheries — Article 39 (ex Article 33 TEC) (OJ C 202, 7.6.2016, pp. 62-63)

Consolidated version of the Treaty on the Functioning of the European Union — Part three — Union policies and internal actions — Title III — Agriculture and fisheries — Article 40 (ex Article 34 TEC) (OJ C 202, 7.6.2016, pp. 63-64)