CAP rules and organisation

1. Technical Assistance for Development of a Strategy for Alignment with • Common Market Organisation (CMO) Requirements • TR2014/AG/10-A1-01/001 • This Project is co-financed by the European Union and the Republic of Turkey CAP rules and organisation Antalya, 28 February, 2018

2. Treaty on the functioning of the European Union (title III).Article 39 1. The objectives of the common agricultural policy shall be: (a) 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; (b) thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture; (c) to stabilise markets; (d) to assure the availability of supplies; (e) to ensure that supplies reach consumers at reasonable prices

3. Four main regulations govern the common agricultural policy , introduced by a reform in 2013 to simplify legislation. The rules have applied since 2014. • Direct payments linked to environmental-friendly practices • Market measures • Ruraldevelopment • Horizontalissues

4. 1)Direct payments linked to environmental-friendly practices A set of common rules for direct for active farmers including a mandatory «greening" component and a focus on young farmers; all payments are subject to cross-compliance. Greening‘ is a major innovation brought in under the 2013 CAP reform, makes the direct payments system more environment-friendly. Farmers who use farmland more sustainably and care for natural resources as part of their everyday work benefit financially.

5. How does cross-compliance work? In order to receive payments, farmers shall respect a set of basic rules. Farmers not respecting EU law on environmental, public and animal health, animal welfare or land management will see the EU support they receive reduced. These reductions are proportional to the extent, permanence, severity and repetition of the infringement specified.

6. Cross-compliance covers two elements: • Statutory Management Requirements (SMRs): These requirements refer to 13 legislative standards (not part of the PAC) in the field of the environment, food safety, animal and plant health and animal welfare. • Good agricultural and environmental conditions (GAECs): The obligation of keeping land in good agricultural and environmental condition refers to a range of standards related to soil protection, maintenance of soil organic matter and structure, avoiding the deterioration of habitats, and water management.

7. 2) Market measures - OCM The CMOs cover around 90% of European Union agricultural production. They govern the production and trade of products or groups of products (cereals, fruit and vegetables, pigmeat, eggs, wine, etc.) with the aim of ensuring steady revenue for farmers, a market for their production and a continued supply for European consumers keeping the prices at a reasonable level. The CMOs are fundamental instruments in the common agricultural market in that they eliminate obstacles to intra-Community trade in agricultural products and maintain a common customs barrier with respect to third countries.

8. In order to fulfill their role, the CMOs use several mechanisms: • market intervention (buy-back of surplus production, aid with storage, price fixing across the market); • limiting production; • trade measures (customs duties, tariff quotas and export refunds).

9. 3) Ruraldevelopment • Fosters the development of rural areas in terms of competitiveness, sustainable management of natural resources and job creation. It outlines priorities such as the transfer of knowledge and innovation, the promotion of food chain organisations in sectors such as fruits and vegetables, energy or water efficiency in agriculture and food processing, etc. • EU countries can align rural development programmes to best respond to country-specific needs

10. HorizontalIssuesThe Semplificationmeetings The relation between CMO and first and second pillar has an importantplace in the Meetings of the Experts’ group for Horizontalquestionsconcerning the CAP. Duringthesemeetings (with workshops and discussions) the MS payattention to all the unnecessaryburdens and to the regulations to be repealed. The aim is to harmonize the regulations, lighten the administrative burden always keeping in mind the importance of controls.

11. An Example: RuralDevelopementSemplification Diagnosis • Heavy procedures both for administration and, in particular, the beneficiaries. • Extremely complex legal framework. • 24 regulations, huge number of guidelines has to be done more comprehensive. • Climate of mistrust - has to be change.

12. Is necessary to have a strategic interlinkage between the different policy instruments. • Importance to show the contribution of the policy to the European Strategy. • Programmestructure (Analysis, Strategy, measures). • Measure description: discussion on how detailed it should be. • Simplified annual reporting.

13. More subsidiarity • For area based measures: same rules in both CAP pillars. • Administrative Checks. Controls and warnings. • Change of mentality is necessary: we don't have to check every detail. • Maintain a certain continuity - change of a system is always challenging.

14. THANK YOU Runa Casaretti

15. The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o.and can in no way be taken to reflect the views of the European Union This publication has been produced with the financial assistance of the European Union