The Ministers of Agriculture of the European Union (EU) approved today, after a year of negotiation, a reform of its Common Agricultural Policy (CAP) which provides for the reduction of direct aid and an increase in quotas the Dairy, European sources said.
The 27 members of the bloc reached agreement for the review of the CAP after 18 hours of negotiations and two compromise proposals that softens the changes proposed by the European Commission (EC, the EU's executive arm).
The reform increases the reduction of subsidies to producers who receive more than 5 thousand euros, so that the reduction reaches 10% in 2012. It includes a high annual quota of 1% of the dairy, which can be changed according to changes in the market.
This reduction in aid is already applied at 5% of support, and money made goes to other policies in the countryside: rural development. The EU decided to increase the cut in several years, until the percentage scheduled for 2012.
In addition, the EU has reached an agreement for higher cuts for farmers receiving subsidies of more than 300 thousand euros. In this case, the reduction will reach 14%.
The EU Commissioner for Agriculture, Mariann Fischer Boel, stressed that the money obtained from the reduction to serve new challenges in the industry, such as water management, climate change and aid to milk producers with difficulties.
Moreover, the agreement confirms the end of milk quotas in 2015 and in the meantime, annual increments of such quotas by 1% in five years to adapt the cattle farmers to market liberalization, said in press conference, the president Council of Ministers of Agriculture and Fisheries of the EU, the Frenchman Michel Barnier.
In December of 2010 and 2012, the higher the quota can be revised according to changes in milk prices.
With respect to tobacco, the EU decided that from 2010, years ending in the current system of subsidies, there is the possibility of an added bonus for cultivation "and with little difficulty," although it is not new money, but founded the funds for rural development.
This amount would be granted under certain conditions, such as a restructuring plan, and could reach 4.5 thousand euros per farm in 2011, 3 thousand euros in 2012 and 1.5 thousand euros in 2013.
The EU also decided that as much as possible of the grants would become in the so-called "single payment", ie by holding a hand or surface, which does not require the farmer or the farmer to produce a given volume or to declare it.
This payment, which is already in force for many agricultural support, will be applied from January 2010 for arable crops, durum wheat and olive oil.
However, the EU will allow a transitional period so that countries can maintain a link with the production and postpone the change in aid to the beef sector, rice and dried fruit.
The CAP is the policy that absorbs most of the budget of the European Union, with 55.8 billion euros.
The 27 members of the bloc reached agreement for the review of the CAP after 18 hours of negotiations and two compromise proposals that softens the changes proposed by the European Commission (EC, the EU's executive arm).
The reform increases the reduction of subsidies to producers who receive more than 5 thousand euros, so that the reduction reaches 10% in 2012. It includes a high annual quota of 1% of the dairy, which can be changed according to changes in the market.
This reduction in aid is already applied at 5% of support, and money made goes to other policies in the countryside: rural development. The EU decided to increase the cut in several years, until the percentage scheduled for 2012.
In addition, the EU has reached an agreement for higher cuts for farmers receiving subsidies of more than 300 thousand euros. In this case, the reduction will reach 14%.
The EU Commissioner for Agriculture, Mariann Fischer Boel, stressed that the money obtained from the reduction to serve new challenges in the industry, such as water management, climate change and aid to milk producers with difficulties.
Moreover, the agreement confirms the end of milk quotas in 2015 and in the meantime, annual increments of such quotas by 1% in five years to adapt the cattle farmers to market liberalization, said in press conference, the president Council of Ministers of Agriculture and Fisheries of the EU, the Frenchman Michel Barnier.
In December of 2010 and 2012, the higher the quota can be revised according to changes in milk prices.
With respect to tobacco, the EU decided that from 2010, years ending in the current system of subsidies, there is the possibility of an added bonus for cultivation "and with little difficulty," although it is not new money, but founded the funds for rural development.
This amount would be granted under certain conditions, such as a restructuring plan, and could reach 4.5 thousand euros per farm in 2011, 3 thousand euros in 2012 and 1.5 thousand euros in 2013.
The EU also decided that as much as possible of the grants would become in the so-called "single payment", ie by holding a hand or surface, which does not require the farmer or the farmer to produce a given volume or to declare it.
This payment, which is already in force for many agricultural support, will be applied from January 2010 for arable crops, durum wheat and olive oil.
However, the EU will allow a transitional period so that countries can maintain a link with the production and postpone the change in aid to the beef sector, rice and dried fruit.
The CAP is the policy that absorbs most of the budget of the European Union, with 55.8 billion euros.
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