| Abstract |
The new CAP integrates both CAP Pillars in one National Strategic Plan. Basic area payments, eco-schemes and agri-environmental measures are its three important cornerstones. There remains a direct payment per hectare but the 'new conditionality' raises the bar for farmers. This is like putting the horse behind the cart! The CAP should see a transition from measures (compliance) to outcomes (performance) but for the moment, farmers are facing more rules. The budget remains the limiting factor for the many ambitions of the CAP. Transferring more money from direct payments to environmental measures undermines the income safety net for farmers but is politically attractive. Income support is still a key objective of the CAP but it seems sometimes to be forgotten. Growers of high value crops such as vegetables, ornamental crops and seed potatoes will, in particular, carefully consider if the next CAP is still something to sign up to. Social conditionality is new with the possibility of deduction of direct payments if minimum labour standards are not met. The arrival of the new Commission with its Green Deal ambitions may further jeopardise farm incomes, particularly if land has to be taken out of production. We now wait to see how EU Member States will shape their National Strategic Plans. We accept the need for transition but the economics must also work for our farmers to make it happen. |