CAP reform must tackle volatile markets, says NFU
Reform of the CAP must help farmers deal with market volatility if farmers are going to stand a chance of making a profit, according to the NFU.
Launching the union’s policy paper on CAP after 2013 in Brussels on Tuesday (4 May), NFU president Peter Kendall said reform of the policy should help farmers maintain their productivity while providing a buffer against unstable markets.
European Commission discussions around the future of the CAP should look to find ways to help farmers be more competitive, he said. Farmers should also be offered incentives to improve the environment.
Mr Kendall said farmers wanted to be less reliant on CAP support, but the functioning of the market needed to be addressed to make it fairer and more balanced so they could make a profit.
“Until then, direct support payments to farmers will remain a crucial component of the policy, helping farmers to deal with market shocks as well as supporting them in meeting the higher standards of production that are expected of European farmers.
“We do accept, however, that historical references cannot be justified after 2013.”
Setting out changes it wanted to see being made to the CAP, the NFU said rural development (Pillar 2) funding needed to be simplified.
“Rural development programmes should be playing an important part in the process of structural adjustment,” Mr Kendall said.
“But they have lost their way, becoming a dumping ground for a range of policy objectives and tied up in bureaucracy.
“Funding has to change to a more sustainable and fair basis for all EU farmers. This means modulation has to go.”
With the CAP facing massive financial and political pressure, Mr Kendall said there was no hiding from reform.
However the biggest fear was the threat of renationalised policy through more flexibility to member states or more co-financing of support, he added.
“This would be a disaster for European agriculture and totally negate the many positives that the CAP has brought to EU farmers and society.”