#CAPReform: A simpler and fairer farm policy

The reform of the Common Agricultural Policy (CAP), which is to take effect next year, was approved by 503 votes in favour to 87 against, with 13 abstentions.

Strengthening farmers in a fairer supply chain

New rules will allow all recognised farmers’ organizations to plan production and negotiate supply contracts on behalf of its members without falling foul of the EU’s competition rules. Collective negotiations have so far been allowed only in a few sectors such as milk, olive oil, beef or cereals.

Better tools to face market crises and production risks

Farmers will be more able to protect themselves against market volatility and natural risks such as bad weather conditions, plant pests or animal diseases. Measures to stabilise farmers’ income will be better tailored to their needs, including an increase in compensation by crop, animal and plant insurance and from farmer-owned mutual funds. The Commission will be able to respond faster than before to crises by using exceptional support measures for farmers.

Active and young farmers: More flexibility

Member states will have more flexibility in defining what constitutes an active farmer, thus being eligible for EU farm subsidies. They could also increase top-ups for young farmers - from 25% to 50% of their basic payment for the first 25-90 hectares, to make working in an ageing sector more attractive.

“Today we significantly strengthened farmers’ position in the supply chain, gave farmers better tools against market and production risks and boosted support for the young ones. This will make our farming policy fairer, simpler, better tailored towards farmers’ needs, and better equipped to deliver food security for EU citizens. New rules will be in place in time to allow our farmers to benefit from these positive changes as quickly as possible,” said rapporteur Albert Dess (EPP, DE).

“The package approved today represents an important result for our farmers: on the one hand, we have solved some of the most pressing problems in current legislation; on the other hand, we offer farmers new opportunities, especially to cope with increasing market volatility. This mid-term review of the CAP also proves that the role of Parliament in the EU law-making process is essential to achieve positive results for both EU farmers and citizens,” said head of Parliament’s negotiating team Paolo De Castro (S&D, IT).

Next steps and more details

An update of EU farming rules still needs to be endorsed by the EU Council before it enters into force on 1 January 2018. More details on the content of the reform is available here.