Tough on trade, but more lax on CAP – that’s a quick summary of the EU’s new blueprint for agriculture and food, according to a leaked draft that ARC2020 got its hands on. So what’s on the menu for agrifood policy for the next 5 years? Natasha Foote takes a first look at what the Vision envisages for the sector.
The Vision, due to be published by the Commission on 19 February, can be seen as the blueprint laying the groundwork for the direction of European agricultural and food policy over the next five years and beyond.
Kicking off by stressing the importance of farming and food as a ‘strategic sector’ for the EU, the draft document is orientated around four fundamental flagship actions. These include focusing on creating an agrifood sector that is: “attractive and predictable” with incomes that enable farmers to thrive; “competitive and resilient” in the face of rising global competition and shocks; “future-proof” and functioning within planetary boundaries; and lastly one which “values food, fair working and living conditions,” as well as “vibrant and well-connected rural and coastal areas”.
So how does it propose to set about doing this? Here we break down the juiciest policy bits:
CAP: More carrot, less stick
On the EU’s Common Agricultural Policy (CAP), two key things stand out.
The first is that direct payments will live on, but that money will be “more directed towards farmers that actively contribute to food security [and] the economic viability of farms”. This includes enhanced use of measures such as degressivity and capping – fancy ways to say that the payments would be weighted more in favour of “those that need it most”, with a ceiling on the top payment. It notes that all farms should be able to benefit from payments for ecosystem services.
Second is that the Commission is looking to make this next CAP much leaner, but not necessarily greener. This includes simplified income support tools to help small and medium sized farmers without too much red tape.
The Vision sets out that flexibility will be “extended to farmers” giving them “further agency in designing farming practices more tailored to their farms and context”. Meanwhile, the current system of conditionality will be simplified, and the Commission will orient the future CAP away from conditions to incentives – think more carrot, less stick.
In line with suggestions from the Strategic Dialogue on Food, the Commission will also commit to a ‘voluntary benchmarking system for on-farm sustainability assessment’, which it says will allow simplification and benchmarking to go “hand in hand”. This includes a ‘sustainability compass’ (yes, more transport analogies) to act as a “one-stop shop” that reduces administrative burdens for farmers, allowing them to monitor and record sustainability data “only once”. This can be used to benchmark their sustainability performance and demonstrate their provision to ecosystem services.
Keep it simple, stupid
As per the Commission’s focus on simplification, the roadmap promises an ‘unprecedented simplification effort’ in agriculture, adding that “numerous derogations” to obligations “prove that one-size-fits-all approaches are not the most appropriate tool for such a diversified sector”.
In the second quarter of 2025, the Commission will put forward a comprehensive simplification package of the current agricultural legislative framework. This will deliver on-farm simplification and streamlining of requirements, as well as “improved and simplified planning and access to financial instruments available under the current [EU budget]”. This includes offering greater flexibility to the member states for the management of the strategic plans.
This simplification plan includes, but goes wider than, the CAP, focusing on all elements that will “help farmers and food businesses become more competitive and resilient”.
Tough on trade
The Vision draft takes a tough stance on trade – one which is likely to raise eyebrows considering the current geopolitical context.
It stresses the need for a ‘fairer global level playing field’. Here the Vision envisages a two-pronged approach; on the one hand, a more assertive stance on ‘promoting and defending strategically the exports of EU products’ on the one hand, combined with a ‘stronger alignment of production standards applied to imported products’, notably pesticides and animal welfare.
For animal welfare, the roadmap maintains that future legislative proposals should apply the same standards for products produced in the EU and those imported from third countries, adding that a new targeted review of animal welfare legislation will be an opportunity to apply this in a way that is compliant with world trade rules.
On pesticides, this includes ensuring that the most hazardous pesticides banned in the EU for health and environmental reasons are not allowed back to the EU through imported products”.
It also adds a suggestion for a proposal on origin labelling to help strengthen this, as well as an intensification of its promotion policy.
Although the spirit is commendable and will be welcomed by both farmers and green campaigners, the caveat, of course, is that it says all of this must be done “in line with international rules”. Another caveat is that it stresses that the EU’s resilience “hinges on [its] ability to diversify its trade relationships, creating new export opportunities for the sector and reducing critical dependencies,” e.g. key inputs such as fertilisers.
Money talks
Just as negotiations get underway on the EU’s new budget, the Vision places a strong emphasis on money, both on farmers’ pockets and strengthening their position in the food chain. To do this, the EU must “draw on all sources of income,” it states, adding that this includes market revenues, public support, diversified and new complementary income sources.
The roadmap says it will “maximise public investment and leverage and de-risk private capital,” promising to work closely with “institutional investors” such as the EIB as well as the banking sector.
Meanwhile, it rests heavily on “innovative financing tools,” including blended public private financing for nature. “In addition to public support, [this can] reward farmers who maintain or transition to nature positive practices and bring them together with companies and investors with business interest in such practices,” it states.
This includes carbon farming as well as the development of nature credits, both of which are earmarked as potentials for additional income.
It also places strong emphasis on renewable energy production, such as solar panels, windmills and biogas production, as an avenue which it says “enhances energy security” while offering additional income and emission reductions.
There are also suggestions for how to ensure farmers get a better deal from the market. “Practices where farmers are systematically forced to sell below costs will not be tolerated”, it states. This principle will be enshrined in the ongoing revision of the Unfair Trade Practices and Common Market Organisation regulation, but it also promises “further initiatives”, without giving much more detail on what these could be.
Meanwhile, the blueprint suggests the creation of a new Agrifood Chain Observatory to create more transparency about how costs and margins are formed and shared in the food chain in efforts to help stimulate trust and fairness. This is also designed to help with the impacts of recent inflation.
‘Fork’ side
Despite a focus on helping people go back to their “roots” and re-establishing the link between food, territory, seasonality and local traditions, the Vision is thinner on the consumer side of the food chain.
But it does set out an aim to strengthen short supply chains. This includes a legal proposal on strengthening the role of public procurement. For this, it sets out that the lowest price “should no longer be the only criterion to award tenders when procuring food”. It also puts forward a review of the EU school scheme.
New, shiny things
There are also a number of new, shiny policy proposals outlined in the Vision, including a new generational renewal strategy, to be delivered in 2025. This will provide recommendations for the policy response and measures needed both at an EU and national/ regional level.
Noting that availability of land is a core problem, it also proposes a new EU observatory on farmland to help enhance transparency and cooperation for land transitions and transfers of land use rights, price trends and market behaviour
The roadmap also sets out a new pathway to fast-track approval and access to biopesticides, promising a new proposal in 2025 (which is looking like a busy year for the Commission). On the flip side, it looks like pesticide bans will get trickier, as it sets out that no chemicals will be banned if alternatives are “not available within a reasonable time and at reasonable cost”, except where human health or key farming habitats are at risk.
The roadmap also promises a new ‘long-term vision’ for the livestock sector and a ‘work stream on livestock’, which it maintains is an essential part of EU agriculture, competitiveness and cohesion. A new protein plan is also in the works.
Rural resilience
Last but not least, the policy blueprint promises an updated EU rural action plan, as well as a ‘rural proofing principle’ including territorial assessments, in efforts to reinvigorate connections between food and territory and revitalise rural areas.
It adds that a closer coordination of funding instruments, specifically between Cohesion and CAP, are needed to “further enhance effective support and tangible impact in rural areas”. This is likely to raise eyebrows among rumours that the Commission is looking to merge the two budget lines – something that has been poorly received in the farming community.
Meanwhile, participatory development tools, such as LEADER and community-led local development and other forms of cooperation, such as Smart Villages, will be “further strengthened”.
What next?
This is just the leaked version, so of course it is subject to change. The proof of the pudding will be the official unveiling of the Vision on 19 February. Put the date in your diary, and keep your eyes on ARC, where we’ll bring you the latest on the Vision and future plans for EU agrifood policy.
This article is produced in cooperation with the
Heinrich Böll Stiftung European Union.
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