Pantone 390 Pantone 364 CMYK 73 / 9 / 94 / 39 Proposals ... · CMYK 73 / 9 / 94 / 39 Pantone 390 CMYK 24 / 0 / 98 / 8 . PROPOSALS FOR THE FUTURE CAP: A JOINT POSITION FROM THE EUROPEAN

Proposals for the future CAP: a joint position from the European Landowners’ Organization

and BirdLife International

Pantone 364CMYK 73 / 9 / 94 / 39

Pantone 390CMYK 24 / 0 / 98 / 8

PROPOSALS FOR THE FUTURE CAP: A JOINT POSITION FROM THE EUROPEAN LANDOWNERS’ ORGANIZATION AND BIRDLIFE INTERNATIONAL

PREFACE

The sound management of our natural resources is essential to underpin the vital role of food production from farming. The unique farmed landscapes of Europe have arisen as a result of centuries of interaction between nature and human management. Many of our charismatic species and habitats are now dependent on the continuation of appropriate farming practices. Good land management is also vital for ecosystem services such as water, soil and green house gas regulation.

For many decades the Common Agriculture Policy has shaped the way Europe’s land is managed and farmed, but it is clear that it is now in need of further reform to enable the policy to respond to future challenges. A number of issues are forcing the debate about the future of the EU’s land into centre stage: the growing global demand for food, the threat of global warming and the threats to Europe’s environmental quality; all brought into focus by the debate that is just starting on the next EU budget.

Environmental groups and those who farm and manage the land are often assumed to take opposing positions on these issues. For this reason, the European Landowners’ Organization and BirdLife International feel it important at this early stage in the debate to highlight some common principles that both organisations share. There are many detailed issues over which our organisations have different perspectives, but we do not want this to obscure the fact that there are some very fundamental matters we agree on as we enter the EU Budget debate.

Most fundamentally, both organisations see a continuing role for a European policy and budget to help achieve our food and environmental security. We agree that the current CAP must change to meet the emerging challenges of the 21st Century. And although we have our own distinct views on what the policy should look like, we share considerable common ground over what the policy needs to deliver and the principles that it must embrace.

We commend this joint declaration to all parties as the debate over the EU budget and the future CAP gets underway, and we would welcome your feedback on this document.

Angelo Caserta, Thierry de l’Escaille, Regional Director, Secretary General,BirdLife International European Division European Landowners Organization

Cover photos from left to right: Andy Hay (rspb-images.com), M.Demko, Andy Hay.Main Photo: Ariel Brunner, BirdLife International.


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SUMMARY: THE KEY MESSAGES

1. Appropriatelandmanagementiscrucialfortheconservationofarangeofecosystemservices,acriticaloneofwhichisfoodproductionforthehumanpopulationandunderpinningthis,thelong-termcapacityoflandforfoodproduction.

2. SustainablemanagementofEurope’s land requirescontinuedactive interventionby farmersandlandowners.

3. There isaparticularneedtoensurethemaintenanceofextensive livestock,andotherHighNatureValue,systems

4. Europeplaysanimportantroleinglobalfoodsecurityandindrivinghigherglobalenvironmentalstandardsofproduction.

5. PoliciesandbudgetsattheEuropeanlevelarejustifiedtoenableustorisetothesefoodandenvironmentalchallenges.

6. Futurepolicy therefore requires theevolutionof theCAPtoensurealignmentbetweenCAPsupportandpublicbenefits.

7. ThemechanismsandmeasurestoachievethisarelikelytoshowmorecharacteristicsofcurrentCAPruraldevelopmentandagri-environmentmeasuresthancurrentfarmsupportmeasures.


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1. Land management is crucial for the conservation of a range of ecosystem services, a critical one of which is food production for the human population and underpinning this, the long-term capacity of land for food production.

Farmingandother land-basedeconomicactivities,suchas forestmanagement,areverydifferent fromother sectors of the economy because of their extraordinary level of associated externalities. Theseare the inescapablesideeffectsofmanaginga largepartof the territoryandcanbepositive,suchaslandscape and habitat creation, and negative, including air and water pollution. As farming in effectmanages the environment, with significant influence on its wildlife and natural processes, the role offarmersas landmanagers isgenerallyessential inarangeofenvironmentalconcerns:biodiversityandheritageconservation,watershedmanagement,soilconservationandcarbonsequestration.ItisalsovitalforothersocietalconcernssuchasthelandscapewhichformsthebasisforEurope’sthrivingruraltourismandrecreationindustries.

Farmingisakeysectorofoureconomyandoursociety,notjustbecauseofitsroleinlandmanagement,butprimarilybecauseitisresponsiblefortheproductionoffood-themostfundamentalofhumanneeds.Themainbusinessofmostfarmersremainstheproductionofsufficient,healthyandsafefoodthatconsumerswanttobuy.WithrecentreformsoftheCAPandthegradualopeningupofworldmarkets,farminghasbecomemoreofa“normal”economicsectorwherefarmersactasentrepreneursrespondingtomarketdemand. However, the overwhelming importance of food requires much more attention and strongerpublic safeguard policies than “normal” industries. While it is inefficient for the state to get directlyinvolvedinfoodproduction,ortotryandmicro-managedemandandsupply,societymustmakeconsciousarrangementstoensurethelongtermsecurityandstabilityofitsfoodsupplies.Centraltothisisensuringtheenvironmentalsustainabilityoffarming.Maintainingthelong-termproductivecapacityofthelandcanbeviewedasapublicgoodinitself.


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2. Sustainable management of Europe’s land requires continued active intervention by farmers and landowners.

MostofEurope’slandismanagedbyprivateowners-mainlyfarmersandforesters.Europehasverylittlepristinehabitatleft,thegreatmajorityoflandhasbeenforcenturies,ifnotmillennia,activelymanagedbyhumansanditishumanactivitythathasshapedsomeofEurope’smosttreasuredlandscapes.

Plant communities and their associated animal life have co-evolved with human activities over thecenturiesandareinmanycasesnowdependentonthecontinuationoftraditionalmanagementpractices.Whileinsomecasesnaturerestorationandeventheabandonmentofactivemanagementarejustifiedandindeedwelcome,overthevastmajorityofEuropeanlandtheconservationofbiodiversity,theappropriatemanagementofwatercyclesandthepreservationoflandscapes,allrequireongoingactivemanagement.ThismanagementcanbeprovidedinsomecasesbypublicbodiesorNGOsbutaboveallitrequirestheengagement of the economic and social actors owning and managing land: landowners, farmers andforesters.

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3. There is a particular need to ensure the maintenance of extensive livestock, and other High Nature Value, systems.

Almost all land managers can deliver important public goods: appropriate agricultural and forestmanagement isvital for thedeliveryofavarietyofecosystemservicesandgoodsaswellas the foodand other products they provide, these include, water, flood and carbon management, biodiversity,cultural landscape and access. Because, by definition, public goods are not rewarded by the market,publicpaymentsorsomeothercollectiveactionsareneededifeconomicoperatorsaretodeliverthematasufficientlevel.Acomprehensiveagri-environmentalpaymentsframework,andotherpaymentsforspecificenvironmentalservices,couldprovidesuchasystem.Thereare,however,certaintypesof,usuallytraditional and extensive, farming that are nowadays economically marginal and find it impossible tosurviveonthefreemarket.SuchsystemswouldcollapseifcurrentCAPPillar1paymentswerewithdrawn,eveniftheycontinuedtoreceivecurrentlevelsofenvironmentalandLessFavouredAreapayments.

Insuchareas,wheremarketincomeismarginal,publicgoodspaymentsbasedonagriculturalincomeforegonewillsimplynotguaranteethesurvivalofthesebusinesses.Critically,therapiddisappearanceofsuchbusinesseswouldbeaccompaniedbyunacceptablesocial,landscapeandbiodiversitychange.ThisisthecaseofmanyofEurope’sHighNatureValuefarmingsystems,andinparticularofmanyextensivelivestockoperationsthatarevitalfortherangeofservicessummarisedabove.ThefutureCAPmustgivemuchmorefocus to targetingsupportat theseeconomicallymarginalbutenvironmentally rich farmingsystems.Thisshouldbeachievedthroughacombinationoftwokindsofeffort:

• Redefining the basis of environmental payments in such zones.Bydefinition, inareas“lessfavoured” for agricultural production, the production forgone by deploying less intensiveproductionssystemsisnotverygreat.Therealopportunitycostofthesefarmersiswhattheycould earn outside agriculture by relocating their families, and therefore the environmentalservices lost from the abandonment of farming. The challenge is to exploit the full rangeof flexibility in international agreements on the principles of environmental payment toaccommodatethislogic.

• Targeted rural development investmenttopromoteHNVandotherlandmanagementsystemswhichareimportantforpublicgooddeliveryThesesystemsoftenhaveintrinsicallylowyieldsandtryingtoincreasethemmaycomeattheexpenseofthedeliveryofpublicgoods.Ontheotherhand,HNVfarmingcanbemademorecompetitivebyplayingon itsnaturalpointsofstrength:productqualityandcharacter,andenvironmentalquality.Public investmentshouldsupportfarmers inaddingvaluetotheirtraditionalproduction,throughlabelling,promotion,marketing and local processing, and in finding new sources of revenue linked to their landstewardshipmainlythroughtourismandrecreation.


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4. Europe plays an important role in global food security and in driving higher global environmental standards of production.

Europe is one of the world’s biggest food producers, is the world number one importer and amongstthe largestexportersof food. It thereforehasnotonlyself interest in itsownfoodsecurity,butalsoaresponsibility tocontribute toglobal foodsecurity. In thepast,subsidisedexports fromtheEUharmedfarmers in developing countries by pushing international food prices down. The 2006-08 price spikes,partiallydrivenbyexportrestrictionsinpartsoftheworldsuddenlymeantfoodwasmuchlessaffordable,hurtingpoorpeople in food importingcountriesandcities.Global foodsecurity ismuchmorecomplexthan a question of simply producing more and trade rules and disciplines are also important for thesmootheroperationofmarkets.Broadlyspeaking,theEUshouldmaintainitscapacitytoproducemostofthetemperatezonefooditconsumes,whileatthesametimeengagingintheworldmarketinafairandconstructiveway.Populationandaffluencegrowth,both insideandoutsideEuropemean thatdemandforagriculturalproductswillcontinueto increase in thecomingdecades.This is likely toplacefurtherstrainonecosystemsandrisks leadingtoanevengreaterdegradationofnaturalresources.Ecosystemdegradationisalreadycausingsignificantproblemstowaterresources,soilqualityandbiologicalservicessuchasinsectpollination,andifuncheckedcouldjeopardiseourabilitytoproducefoodintheforeseeablefuture. Europe must lead the way toward truly sustainable systems of food production by setting andchampioninghighstandardsofenvironmental,aswellassocialandproduct,quality.

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5. Policies and budgets at the European level are justified to enable us to rise to these food and environmental challenges.

Theenvironmentalchallengeswefaceinthisnewcenturyareglobalbynature.Climatechangecallsforcollectiveaction tostabilise theclimate - theultimatesharedpublicgood.Biodiversity,becauseof itsinfinitelyintricateweboflinksbetweenorganisms,speciesandecosystems,isagaininherentlyglobal.Animalsandplantseedmoveacrossborders,populationsoforganisms(includingplants)areinterconnectedthroughdemographicandgeneticmechanisms.Itisimpossibletosavebiodiversitylocally,inisolationtoactiontakenelsewhere,andsimilarly,thevalueofbiodiversityisatleastpartiallyuniversal.Waterbasinsoftenspannationalbordersandpollutionultimatelyendsupintheseathatissharedbyall.Ifwearetoconserveourecosystemsandmakethemresilientinthefaceofclimatechangeweneedtoactglobally.

European action is the next best to global action as the EU comprises such a big portion of land and

containssuchahugesingleblockofconsumers,producersandcitizens.TheEuropeanCommunityhasalsocommittedtoactthroughitsstatusassignatorytointernationalcommitmentsonbiodiversityandclimatechange.Similarly,foodsecurityisaglobalissuethoughitisalwaysmanifestatlocallevel.EUcompetenceforfood,agriculture,environmentandtradearelong-establishedprinciplesandfunctionsoftheEuropeanUnion.WhiletheEUcannot,throughitsagriculturalpolicy,solvetheissueofhungerandmalnourishmentinthedevelopingworld,itcantrytoensurealongtermstabilityofatleastasignificantpartoftheworld’sfoodproduction.WethusbelievethatthereisastrongcaseforcommonEUactiononlandmanagement,foodandtheenvironment.

CommonobjectiveswithintheEUsinglemarketcannotbeachievedwithoutacommonframeworkofpolicy.Inparticular,landuserequiresconstantbalancingbetweentheneedtoproduceprivateandpublicgoodsandbetweendifferenttypesofproduction.WithintheEU,thereisariskthatintheabsenceofacommonpolicyfordealingwiththeland-basedpublicgoodswewouldwitness,withrespecttosomeaspectsoftheenvironment,aracetothebottomwherebyeverycountrytendstomaximiseitsagriculturemarketshareattheexpenseofpublicgoodsprovision.Inparallel,therecouldbearacetothetopwherewealthyregionsarewillingandabletosupporttraditionalfarmingsystemswhichhavepositiveenvironmental impactstothecompetitivedisadvantageoflesswealthyregions.ThisarguesforacommonEUframeworkforpublicgoodsdelivery.

Whilethecaseforacommonpolicyisstrong,thehugevariabilityofecologicalandeconomicconditionsacrossEuropemeansthatthepolicyneedstobeflexibleenoughtoaccommodatethediverseneedsoflocalconditions.Webelievethatitispossible,andindeedindispensable,tohaveonecommonEUpolicythatsetstheframework,objectivesandaccountabilityrules,whileallowingMemberStatesandregionstotailortheactualmeasurestotheirownsituationsandtakecareofdeliveryontheground,andatthesametimeavoidingdistortionoftherelatedfarmproductmarkets.

ArguingforcommonEUframeworksandactionisnotthesameasarguingforanEUbudget.Nonethelessitisvitalthatpolicygoalsdrivethebudgetandnottheotherwayround.ThisrequiresasystematicEUexercisetocalculatethenecessaryEUbudget todeliver thequantumofenvironmentalserviceswhilstachievingtheappropriatedegreeoffoodsecurity.TherearecleardangersthattheEUisheadingintheoppositedirection.


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6. Future policy therefore requires the evolution of the CAP to ensure alignment between CAP support and public benefits

The CAP has steadily adapted tochangingcircumstancessinceitwascreatedinthelate1960s,butithastoadaptfurthertofacethesedauntingfood and environmental challenges.Currentfundingallocation(toMemberStates,regions,sectorsorindividualfarmers) still reflects a policy tunedtosupportingagriculturalcommodityproduction. The significant reformssince the mid-1990s have moved toa more market oriented agriculture,where commodity markets can anddoworkwell,changingthethrustofthepolicytowardsthemarketfailuressurroundinglandmanagement.Thereisagrowingconsensusthatthisisthedirectioninwhichfurtherreformsmustmove.Howevertheallocationoffundinghasyettocatchupwiththisshiftinpolicy.

Therearetworeasonstosupposethatthescaleofpublicgoodstobedeliveredbyfarmersandthecostsoftheirdeliverymayriseinfuture.First,asthepressureformoreglobalfoodproductiongrows,thiswillmoveusintoahigherpriceerathanforthelastfewdecades.Theintensificationofproductionwhichthisdriveswillincreaseboththescarcityandthevalueoftheenvironment.Thismeansthatifwewishtotakecounteractivemeasurestoconservetheenvironmentthenitwillcostusmore.Thesecondargumentisthatadaptation toclimatechange, inter alia, requiresanetworkofenvironmentalcorridorsacross theentireterritorytoprovidetheconnectivityofhabitatsandtoallowspeciesmovement.Thisimpliessomebroad-applicationstewardshipschemesoverthebulkoftheterritoryincludingtheintensivelyfarmedmostfertileareas.ToregainpublicsupportasalegitimateinstrumentofEUpolicytheCAPmustberealignedsothatpublicexpenditurematches,asmuchaspossible,thedeliveryofpublicbenefitswhicharevitalforachievingbothfoodandenvironmentalsecurity.Thecostsassociatedwithpublicgooddelivery,althoughlikelytorise,shouldnotdemandanincreaseintheEUbudget,butinsteadcouldbeaccommodatedbyaredeploymentofdirectagriculturalsupports.

Theclearerthelinkbetweenwhatbeneficiariesreceivefromtaxpayers,andwhattaxpayersreceive(ascitizens)fromthebeneficiaries,themorejust,robustandfunctionalthesystemwillbe.

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7. The mechanisms and measures to achieve this are likely to show more characteristics of current CAP rural development and agri-environment measures than current farm support measures

WemustlearnfromthelongexperiencewiththecurrentarrayofCAPtoolswhenitcomestodesigningfuturetools.PillarIhascertainstrengthinitsrelativeadministrativesimplicityandinthestrongelementofcertaintyandrevenuestabilityitgivesfarmers.Ontheotherhanditsdistributionwithinandbetweenmemberstatesisstilllargelybasedonits1960sto1990sfunctionascommoditymarketsupportratherthanasacontractlinkingpaymenttothedeliveryofpublicgoods.WestillhavemuchtolearnaboutdevisingandoperatingcosteffectivePillarIIschemes,buttheyhavedemonstratedthatintherightcircumstancestheycanproduceeffectiveandsophisticatedresults.Webelievethatafuturesystemshouldcapturethebestofbothpillarsandincludethefollowingprinciples:

• Contractual base-Allpaymentsshouldeventuallybebasedonaclearcontractbetweenthecontractorandsociety,spellingoutthepublicgoodsthatthecontractorisexpectedtodeliverinexchangeforthepayments.Thesecontractsshouldbemultiannualandlongenoughtogivethe farmers a sufficient level of certainty and business stability, while they should includeelementsofflexibilitytoallowforcontinualimprovementandreactiontochangingeconomicandenvironmentalconditions.

• Transparency-allrelevantdataaboutpublicpaymentsandcontractors’commitmentsshouldbemadepublic.

• Targeting- all payments should clearly aimat thedelivery of specific public goods. Specificdoesn’tneed tomeannarrowbut itmustbeclearwhatapayment is trying toachieveandresultsshouldbequantifiableandmeasurableagainstsecurebaselines.

• Monitoring-itisessentialthatthereshouldbeasoundsystemofmonitoringoftheperformanceoftheschemestoensurethetargetsaresensibleandachievableandresultsacceptable.Thiswillguidethefurtheradaptationoftheschemesovertimeatalllevels,fromthefarmtotheoverallpolicy.There isno reason toexpectnature,or society’sevaluationofenvironmentalpublicgoods,tobestatic.

• Accountability-contractorsshouldbefullyaccountableforcomplyingwiththetermsoftheircontract, but even more important, national and regional authorities responsible for thespendingshouldbefullyaccountablefortheachievementofagreedEUobjectives.IffundingistocomefromtheEuropeantaxpayers’pocket,theeffectivenessofspendingmustbeaccountedfortotherepresentativesofthetaxpayers.

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BirdLife International is a global Partnership of conservation organisationsthat strives to conserve birds, their habitats and global biodiversity, working

with people towards sustainability in the use of natural resources. The BirdLifePartnership operates in more than 100 countries and territories worldwide.

BirdLife International is represented in 42 countries in Europe and is active in all EU Member States.

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Disclaimer:This publication is supported by the European Commission DG Environment under the LIFE+ programme Operating Grant Agreement n° 07.0307/2009/SI2.535265SUB/A1,

but it solely reflects the views of its authors. These views should not be relied upon as representing a Commission position. Neither the EC, nor person or any acting on its behalf can be held responsible for the use that might be made of the information arising from this document.

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