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Women's Food and Farming Women's Food and Farming National Conference National Conference
1212thth April 2012 April 2012
CAP ReformCAP Reform
Presentation by Presentation by Richard Ashworth MEPRichard Ashworth MEP
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Food security and the CAP• World population reaches 9 billion by 2050.• That means an extra 182K people per day, or -• A new population the size of the UK every year for 30 years.
• 1 billion lifted out of poverty.
• Climate change impact and global productivity.
• Foresight report, UNFAO and the European Commission agree that the world must double food output by 2050.
• Food security: Of strategic importance to governments.
• Supported agriculture is here to stay.
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Food industry: Important to the EU economy
• Food industry is one of the largest and most important manufacturing sectors in Europe.
• It is the second largest (after metal) in the manufacturing industry, with 14.5% of total manufacturing turnover (€917bn for the EU-27).
• Employment in the food industry represents about 14% of the total manufacturing sector.
• Europe is the world’s largest importer of food.
• That is greater than 35 million hectares entering the EU each year.
• Economic and moral case for increased productivity.
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European budget 2014-2020
• Limited size.
• Changing priorities.
• Jobs, growth and competitiveness.
• Pressure on traditional spend.
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Public perception
• Low awareness of global food security.
• No awareness of the impact on the EU.
• Perceived conflict between output and environment.
• Perceived conflict between technology and food quality.
• “Disconnect” between opinion in the car park and behaviour with the trolley!
• Low awareness of imbalance of power in food chain.
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Commission proposals
• Greening: Pillar 1 or Pillar 2?
• Compulsory set aside: Multi-cropping, permanent pasture and organic.
• Definition of an active farmer.
• Capping: Proposed ceiling of €300K affects UK most.
• New member states: Equalisation of payments.
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The Commissioner’s proposals• Reverses the direction of travel of 3 previous reforms.
• Compulsory set aside, permanent pasture -• A logical method to control output.
• Perverse: • Stimulates and subsidises food mountains when there is a
global surplus.• Promotes “extensification” when there is a global shortage.
• Simplification: 15% increase in admin cost!
• MEPs powers under Lisbon Treaty: Agreement in 2013?
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Who? & What?
• WHO should the CAP support?• WHAT is the purpose of the CAP?
• Q: Food, Environment, Regional, or Social policy?• Different nations = Different priorities.
• FACT: UK receives €3bn (£2.5bn) from CAP p.a.• FACT: 56% of the net farm income of an
average UK farmer is the Single Farm Payment. (source: Ernst & Young)
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What if the EU didn’t fund the CAP?
Either: Treasury would pay farmers £2.5bn per annum.
Or: Consumers would pay £2.5bn extra.
• Adds inflationary costs to industrial society.
• Attracts large scale imports particularly from countries with subsidised agriculture.
• Strategically dangerous at a time of global food security concern.
• Would still have to pay for public goods.
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Conclusion
• Not realistic to end farm support.
• There will never be a level playing field. USA and France will always subsidise.
• Supported agriculture is here to stay.
• Is €50bn a year value for money?