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CAP: New report on fraud, corruption and misuse of EU agricultural funds must be wake up call

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MEPs working on protection of the EU's budget from the Greens/EFA group have just released a new report: "Where does the EU money go?", which looks at the misuse of European agricultural funds in Central and Eastern Europe. The report looks at systemic weakness in EU agricultural funds and maps out in clear terms, how EU funds contribute to fraud and corruption and undermining the rule of law in five EU countries: Bulgaria, Czechia, Hungary, Slovakia and Romania.
 
The report outlines up to date cases, including: Fraudulent claims and payments of EU agricultural subsidies Slovakia; the conflicts of interest around Czech Prime Minister's Agrofert company in Czechia; and state interference by the Fidesz government in Hungary. This report comes out as the EU institutions are in the process of negotiating the Common Agricultural Policy for the years 2021-27.
Viola von Cramon MEP, Greens/EFA member of the Budgetary Control Committee, comments:   "The evidence shows that EU agricultural funds are fuelling fraud, corruption and the rise of rich businessmen. Despite numerous investigations, scandals and protests, the Commission seems to be turning a blind eye to the rampant abuse of taxpayer's money and member states are doing little to address systematic issues. The Common Agricultural Policy simply isn't working. It provides the wrong incentives for how land is used, which damages the environment and harms local communities. The massive accumulation of land at the expense of the common good is not a sustainable model and it certainly shouldn't be financed from the EU's budget.
 
"We cannot continue to allow a situation where EU funds are causing such harm in so many countries. The Commission needs to act, it cannot bury its head in the sand. We need transparency on how and where EU money ends up, the disclosure of the ultimate owners of large agricultural companies and an end to conflicts of interest. The CAP must be reformed just so it works for people and the planet and is ultimately accountable to EU citizens. In the negotiations around the new CAP, the Parliament team must stand firm behind mandatory capping and transparency."

Mikuláš Peksa, Pirate Party MEP and Greens/EFA Member of the Budgetary Control Committee said:   “We have seen in my own country how EU agricultural funds are enriching an entire class of people all the way up to the Prime Minister. There is a systemic lack of transparency in the CAP, both during and after the distribution process. National paying agencies in CEE fail to use clear and objective criteria when selecting beneficiaries and are not publishing all the relevant information on where the money goes. When some data is disclosed, it is often deleted after the mandatory period of two years, making it almost impossible to control.
 
“Transparency, accountability and proper scrutiny are essential to building an agricultural system that works for all, instead of enriching a select few. Unfortunately, data on subsidy recipients are scattered over hundreds of registers, which are mostly not interoperable with the Commission’s fraud detection tools. Not only is it almost impossible for the Commission to identify corruption cases, but it is often unaware of who the final beneficiaries are and how much money they receive. In the ongoing negotiations for the new CAP period, we cannot allow the Member States to continue operating with this lack of transparency and EU oversight."

The report is available online here.

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Agriculture

Common Agricultural Policy: How does the EU support farmers?

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From supporting farmers to protecting the environment, the EU's farm policy covers a range of different goals. Learn how EU agriculture is funded, its history and its future, Society.

What is the Common Agricultural Policy?

The EU supports farming through its Common Agricultural Policy (CAP). Set up in 1962, it has undergone a number of reforms to make agriculture fairer for farmers and more sustainable.

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There are about 10 million farms in the EU and the farming and food sectors together provide nearly 40 million jobs in the EU.

How is the Common Agricultural Policy funded?

The Common Agricultural Policy is funded through the EU budget. Under the EU's budget for 2021-2027, €386.6 billion has been set aside for farming. It is divided into two parts:

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  • €291.1bn for the European Agricultural Guarantee Fund, which provides income support for farmers.
  • €95.5bn for the European Agricultural Fund for Rural Development, which includes funding for rural areas, climate action and the management of natural resources.

How does EU agriculture look today? 

Farmers and the agriculture sector were affected by COVID-19 and the EU introduced specific measures to support the industry and incomes. Current rules on how CAP funds should be spent run until 2023 due to delays in budget negotiations. This required a transitional agreement to protect farmers’ incomes and ensure food security.

Will the reform mean a more environmentally-friendly Common Agricultural Policy?

EU agriculture accounts for about 10% of greenhouse gas emissions. The reform should lead to a more environmentally friendly, fairer and transparent EU farm policy, MEPs said, after a deal was reached with the Council. Parliament wants to link CAP to the Paris agreement on climate change, while increasing support to young farmers and small and medium-sized farms. Parliament will vote on the final deal in 2021 and it will come into effect in 2023.

Agriculture policy is linked to the European Green Deal and the Farm to Fork strategy from the European Commission, which aims to protect the environment and ensure healthy food for everyone, whilst ensuring farmers’ livelihoods.

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Agriculture

Proposed lift on USA lamb ban welcome news for industry

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The FUW met with the USDA in 2016 to discuss lamb export opportunities. From left, US agricultural specialist Steve Knight, US Counselor for agricultural affairs Stan Phillips, FUW senior policy officer Dr Hazel Wright and FUW President Glyn Roberts

The Farmers’ Union of Wales has welcomed news that the long standing ban on importing Welsh lamb into the United States is to be lifted soon. The announcement was made by UK Prime Minister Boris Johnson on Wednesday 22 September. 

The FUW has long discussed the prospect of lifting the unjustified ban with the USDA in various meetings over the past decade. Hybu Cig Cymru - Meat Promotion Wales have highlighted that the potential market for PGI Welsh Lamb in the USA is estimated to be worth as much as £20 million a year within five years of the export restrictions being removed.

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Speaking from his Carmarthenshire sheep farm, FUW Deputy President Ian Rickman, said: “Now more than ever we need to explore other export markets while also protecting our long established markets in Europe. The US market is one we are keen to develop much stronger relationships with and the news that this ban could soon be lifted is most welcome news for our sheep industry.”

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Agriculture

Agriculture: Commission approves new geographical indication from Hungary

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The Commission has approved the addition of ‘Szegedi tükörponty' from Hungary in the register of Protected Geographical Indications (PGI). ‘Szegedi tükörponty' is a fish of the carp species, produced in Szeged region, near Hungary's southern border, where a system of fish ponds was created. The alkaline water of the ponds gives the fish a particular vitality and resilience. The flaky, reddish, flavorsome flesh of the fish farmed in these ponds, and its fresh aroma with no side-tastes, can be directly attributed to the specific saline land.

The quality and flavour of the fish are directly influenced by the good oxygen supply at the lake bed in the fish ponds created on saline soil. The flesh of ‘Szegedi tükörponty' is high in protein, low in fat and very flavoursome. The new denomination will be added to the list of 1563 products already protected in the eAmbrosia database. More information online on quality products.

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