Biznes Fakty
Agriculture. The European Commission has presented the assumptions of the new Common Agricultural Policy
On Wednesday, the European Commission declared its commitment to ensuring that farmers are not compelled to sell their goods at prices lower than production costs. Detailed proposals are expected to be released in the upcoming months. The upcoming Common Agricultural Policy (CAP) in the next seven-year EU budget aims to be „more straightforward”.
On Wednesday, the European Commission revealed its long-term „vision” for the agricultural policy of the EU. While it lacks numerous specific proposals, it outlines objectives that the EU body has set for itself. Detailed specifics are anticipated in the coming months.
Response to Farmers’ Protests
The new „vision” seeks to address the protests by farmers that occurred throughout Europe last year.
Demonstrations were held multiple times in Brussels and Strasbourg in front of EU institutions, where farmers demanded, among other things, the termination of the trade agreement with Mercosur, a coalition of South American nations, and the repeal of certain provisions of the Green Deal, the EU strategy aimed at achieving climate neutrality by 2050. The EC’s „vision” aims to respond to farmers’ requests, promising support and fair wages. – Food and agriculture are vital for the people, economy, and societies of Europe. We need the agri-food sector to thrive and compete fairly in the global market, to be resilient against crises and shocks. Ensuring our food sovereignty is also crucial – stated EU Commissioner for Agriculture Christophe Hansen on Wednesday. The strategy envisions making agriculture more „appealing” so that farmers remain in the profession. Incomes in this sector are expected to be „fair,” and public support will be „better targeted.” Additionally, farmers will have improved access to loans to supplement their income.
They Will Not Sell Below Cost
Significantly, the European Commission has pledged to guarantee that farmers will not be pressured to sell their produce below production costs. However, it has not specified what concrete measures will be implemented to achieve this. Only a review of the directive on unfair commercial practices has been announced. This issue has persisted for many years, stemming from low purchase prices for agri-food products that fail to cover production costs and the lack of farmers’ influence over the pricing set by intermediaries and corporations.
The EC also stated it would protect the interests of European farmers against external competition. This was one of the protesters’ demands, as they pointed out that they must adhere to strict EU standards, while agricultural product exporters from outside the EU are not bound by the same requirements. This, farmers argue, creates unfair competition.
The Bans Are to Be Analyzed
EU officials have also announced plans to review any additional bans on pesticides and take measures to enhance access to biopesticides within the EU market. This was another demand from protesting farmers, who indicated that pesticide usage restrictions hinder their production, benefiting farmers from non-EU countries. The forthcoming Common Agricultural Policy (CAP) in the next seven-year EU budget is expected to be „more straightforward,” with support directed more specifically at farmers actively engaged in food production, particularly young farmers. The EC’s strategy favors incentives over conditions.
