European Union: European agrarian policy re-articulated

This year, the European agency for agriculture, Common Agricultural Policy (CAP), will be 56 years of its creation and will face strong challenges that will have to be solved in the short term.

These happen mainly through the effective and institutional promotion of new agriculture with sustainable characteristics and by developing measures to lessen the impact of the absence of producers and markets in the United Kingdom, with regard to Brexit.

We Latin Americans observe the process with interest, because as a result of this new scenario we can open or close opportunities for the arrival of our products in those markets. Not only in terms of possible new phytosanitary barriers, but also to greater demands for responsible linkage with the environment, or other facets observed in the productive processes of the region.

Since its inception, the PAC has benefited from the allocation of the largest part of the community budget, although this high figure of resources has decreased, from the 75%, which it became in previous years, to an 40% of the resources with what counts today. In the period from 2014 to 2020, the direct payments destined to the promotion of agriculture for the whole of the European Union (EU), are located at 298.000 million euros.

The European Commission (EC), based in Brussels, wants to have this large amount of resources in its security, immigration or employment policies and for this, a major reform in the EU agricultural policy has been called for. Especially when the United Kingdom's contributions to the fund, amounting to 3.400 million euros per year, are destined to be completed.

Brussels proposes a better balance in its distribution for the benefit of small and medium-sized farms. Thus, to avoid that 20% of the seven million farms collect 80% of the funds, as is currently the case. Each country has the possibility of limiting the aid that a farm can receive up to 150.000 euros and Brussels raises the possibility of setting a range between 60.000 and 100.000 euros, or simply not talking about ceilings and signaling a change in the distribution for the benefit of the little ones.

Among other demands, Brussels is committed to conditioning the allocation of funds to respect the environment; greater investment for new technologies; promote the change of infrastructures as a way to improve agricultural incomes; new financial instruments, new mechanisms for risk management and, especially, more support for the incorporation of young people into the sector, since it is known about the aging of the European agricultural world, where only 6% of farmers have less than 35 years.

In the immediate future, priority will be given to collect these funds, those who have their way of life in agriculture and those who live from agriculture as active producers, that is, those who earn at least 20% of their income from the agricultural activity.

Source: Martín Carrillo O. - Blueberries Consulting

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