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European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy …more…
todays news



Euro = £0.6694 
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  • News

European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy …more…
todays news



Euro = £0.6694 
Creditworthy customers?
FWi Company Check gives peace of mind

Try the service for free – phone 0181-652 4903



    Read more on:
  • News

European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy …more…
todays news



Euro = £0.6746 



    Read more on:
  • News

European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

By FWi staff

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy (CAP).

Ministers from the 15 European Union (EU) countries struck a deal in the early hours of this morning (Thursday) which will reduce support for the cereals, dairy and beef sectors.

In what is perhaps a surprising move, there will be no capping of subsidies, no degressive budget, and no exclusion from the reduced subsidies for small farmers.

The reforms are as follows:

CEREALS

  • In the arable sector, intervention prices are to be cut by 20%, but in two steps instead of one.
  • Compensation is set at Euro66/t (£45/t) – equivalent to half the price cut, but with a E6.5/t (£4.40/t) premium for pulses.
  • Set-aside is set at 10% for the next two seasons, and 0% thereafter.
  • In a significant move for UK growers, ministers agreed that oilseed area payments may not fall below the cereal level. This should provide essential protection for the UK which would otherwise have suffered an even deeper cut in area aid next season due to the Blair House penalties.
  • All area aid payments will be paid between 16 November and 31 January, instead of the January-March payment window in the commissions original proposals.
MILK
  • Under the reform, dairy support prices will be cut by 15% between 2003 and 2005, with quotas increased across the board by 1.5% over the same time frame.
  • An additional 0.9% of quota will be given to Italy, Ireland, Spain, Greece and Northern Ireland in 2000 and 2001 to help with “specific supply problems”.
  • Compensation for price cuts will be paid on a direct litreage basis, rising to E0.1724/litre (11.7ppl) by 2005.
  • Delaying the dairy reform by three years compared with the commissions original proposal is estimated to save the EU budget some E4bn (£2.72bn).
  • There is also a commitment to review the future of milk quotas in 2003.
BEEF
  • In the beef sector, the basic price is cut by 20% to E2224 /t (£1512/t) – a more modest cut than the 30% originally proposed by the commission.
  • This will be phased in over three years from 2000, with private storage aid triggered when market prices get to 103% of this level.
  • Safety net intervention has been retained, though this only applies when market prices fall below E1560/t (£1061/t) – equivalent to just 58p/kg liveweight.
  • Compensation has been adjusted since the original proposal, moving money from the intensive to the extensive sector.
  • Beef special premium will fall to E150/head (£102) by 2002 for steers and E210/head (£143/head) for bulls.
  • Suckler cow premium goes up to E200/head (£136/head).
  • The total amount of money for beef compensation remains the same, however, even though the price cut is smaller.
Money has also been removed from the national envelope to fund a new slaughter premium which will pay E50/head (£34/head) for calves and E80/head (£54/head) for other bovines.

Regional ceilings will be based on the number of animals killed or exported to Third countries in 1995.

Minimum ages for beef special premium are reduced by one month to nine months and 21 months.

This will be of some help to UK producers, but not as much as the last minute decision to up the regional ceiling by 100,000 units to 1.52m head.

    Read more on:
  • News

European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy …more…
todays news



Euro = £0.6746 



    Read more on:
  • News

European farm ministers agree CAP reform

11 March 1999
European farm ministers agree CAP reform

By FWi staff

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy (CAP).

Ministers from the 15 European Union (EU) countries struck a deal in the early hours of this morning (Thursday) which will reduce support for the cereals, dairy and beef sectors.

In what is perhaps a surprising move, there will be no capping of subsidies, no degressive budget, and no exclusion from the reduced subsidies for small farmers.

The reforms are as follows:

CEREALS

  • In the arable sector, intervention prices are to be cut by 20%, but in two steps instead of one.
  • Compensation is set at Euro66/t (£45/t) – equivalent to half the price cut, but with a E6.5/t (£4.40/t) premium for pulses.
  • Set-aside is set at 10% for the next two seasons, and 0% thereafter.
  • In a significant move for UK growers, ministers agreed that oilseed area payments may not fall below the cereal level. This should provide essential protection for the UK which would otherwise have suffered an even deeper cut in area aid next season due to the Blair House penalties.
  • All area aid payments will be paid between 16 November and 31 January, instead of the January-March payment window in the commissionís original proposals.
MILK
  • Under the reform, dairy support prices will be cut by 15% between 2003 and 2005, with quotas increased across the board by 1.5% over the same time frame.
  • An additional 0.9% of quota will be given to Italy, Ireland, Spain, Greece and Northern Ireland in 2000 and 2001 to help with “specific supply problems”.
  • Compensation for price cuts will be paid on a direct litreage basis, rising to E0.1724/litre (11.7ppl) by 2005.
  • Delaying the dairy reform by three years compared with the commissions original proposal is estimated to save the EU budget some E4bn (£2.72bn).
  • There is also a commitment to review the future of milk quotas in 2003.
BEEF
  • In the beef sector, the basic price is cut by 20% to E2224 /t (£1512/t) – a more modest cut than the 30% originally proposed by the commission.
  • This will be phased in over three years from 2000, with private storage aid triggered when market prices get to 103% of this level.
  • Safety net intervention has been retained, though this only applies when market prices fall below E1560/t (£1061/t) – equivalent to just 58p/kg liveweight.
  • Compensation has been adjusted since the original proposal, moving money from the intensive to the extensive sector.
  • Beef special premium will fall to E150/head (£102) by 2002 for steers and E210/head (£143/head) for bulls.
  • Suckler cow premium goes up to E200/head (£136/head).
  • The total amount of money for beef compensation remains the same, however, even though the price cut is smaller.
Money has also been removed from the national envelope to fund a new slaughter premium which will pay E50/head (£34/head) for calves and E80/head (£54/head) for other bovines.

Regional ceilings will be based on the number of animals killed or exported to Third countries in 1995.

Minimum ages for beef special premium are reduced by one month to nine months and 21 months.

This will be of some help to UK producers, but not as much as the last minute decision to up the regional ceiling by 100,000 units to 1.52m head.

    Read more on:
  • News

European farm ministers agree CAP reform

By FWi staff

EUROPEAN agriculture ministers meeting in Brussels have agreed plans for major reform of the Common Agricultural Policy (CAP).

Ministers from the 15 European Union (EU) countries struck a deal in the early hours of this morning (Thursday) which will reduce support for the cereals, dairy and beef sectors.

In what is perhaps a surprising move, there will be no capping of subsidies, no degressive budget, and no exclusion from the reduced subsidies for small farmers.

The reforms are as follows:

CEREALS

  • In the arable sector, intervention prices are to be cut by 20%, but in two steps instead of one.
  • Compensation is set at Euro66/t (£45/t) – equivalent to half the price cut, but with a E6.5/t (£4.40/t) premium for pulses.
  • Set-aside is set at 10% for the next two seasons, and 0% thereafter.
  • In a significant move for UK growers, ministers agreed that oilseed area payments may not fall below the cereal level. This should provide essential protection for the UK which would otherwise have suffered an even deeper cut in area aid next season due to the Blair House penalties.
  • All area aid payments will be paid between 16 November and 31 January, instead of the January-March payment window in the commissions original proposals.
MILK
  • Under the reform, dairy support prices will be cut by 15% between 2003 and 2005, with quotas increased across the board by 1.5% over the same time frame.
  • An additional 0.9% of quota will be given to Italy, Ireland, Spain, Greece and Northern Ireland in 2000 and 2001 to help with “specific supply problems”.
  • Compensation for price cuts will be paid on a direct litreage basis, rising to E0.1724/litre (11.7ppl) by 2005.
  • Delaying the dairy reform by three years compared with the commissions original proposal is estimated to save the EU budget some E4bn (£2.72bn).
  • There is also a commitment to review the future of milk quotas in 2003.
BEEF
  • In the beef sector, the basic price is cut by 20% to E2224 /t (£1512/t) – a more modest cut than the 30% originally proposed by the commission.
  • This will be phased in over three years from 2000, with private storage aid triggered when market prices get to 103% of this level.
  • Safety net intervention has been retained, though this only applies when market prices fall below E1560/t (£1061/t) – equivalent to just 58p/kg liveweight.
  • Compensation has been adjusted since the original proposal, moving money from the intensive to the extensive sector.
  • Beef special premium will fall to E150/head (£102) by 2002 for steers and E210/head (£143/head) for bulls.
  • Suckler cow premium goes up to E200/head (£136/head).
  • The total amount of money for beef compensation remains the same, however, even though the price cut is smaller.
Money has also been removed from the national envelope to fund a new slaughter premium which will pay E50/head (£34/head) for calves and E80/head (£54/head) for other bovines.

Regional ceilings will be based on the number of animals killed or exported to Third countries in 1995.

Minimum ages for beef special premium are reduced by one month to nine months and 21 months.

This will be of some help to UK producers, but not as much as the last minute decision to up the regional ceiling by 100,000 units to 1.52m head.

    Read more on:
  • News
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