Long-term Common Agricultural policy (CAP) vision

Abstract

Tekst częśc. w jęz. ang., fr.

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Viktória Vásáry, senior lecturer
Andrea Elekes, associate professor
Péter Halmai, professor, director of Institute Szent István University, Gödöllő, Hungary
Faculty of Economic and Social Sciences
Institute of European Studies


Long-Term Common Agricultural Policy (Cap) Vision

Introduction

Can we agree fully with the statement, that “agricultural spending is a major distorting
factor in the EU economy and a distinct obstacle to the Lisbon agenda’s implementation”?
(Gros, 2008) Is it true in all cases, that member states are in a better position to execute the
agricultural policy and there is a need for non-intervention at EU level? Is it a good option to
phase out Common Agricultural Policy (CAP), if the CAP can be considered to be much more
than a factor (tool) having put into force the UK rebate which allows a special treatment of
one member state and results in a more opaque budget? Is it unambiguous in every respect,
that the challenges facing the sector – globalization, trade liberalization, climate change, water
management, Lisbon process, enlargement, changing preferences – could be answered at
national level utilizing exclusively national financial sources? Is it without question that
Europe’s agriculture is in position to become sustainable and competitive without certain kind
of common policy with no Community financing? (Sustainable development at sectoral (here
agriculture) and territorial (rural areas) level represents a priority objective of the European
Union strategy, as can be derived from many of the most recent documents.) Shall one
consider agriculture to be more than economic activity? The answers to these questions are
complex. So the purpose of the paper is the assessment of the progress of the CAP towards
the path of sustainability and outlining a possible sustainable alternative.

Sustainability of agricultural activities

The first crucial aspect attains the definition of sustainability. Sustainable agriculture has
attracted great attention in recent decades. Several studies were developed on this issue by
FAO, OECD, USDA, the European Union etc. However, there is no universally agreed
definition of the concept of sustainability, nor general consensus on its representation.
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In our paper we adopt the definition included in the Brundtland report (WCED, 1987)
which is the most widely quoted and generally accepted. According to this very broad
definition sustainable is the development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
Whatever the adopted definition, the operational interpretation of the concept of
sustainability includes three dimensions: economic, social and environmental. And these need
to be considered in an interdisciplinary and integrated approach covering also a wide range of
spatial and organizational scales that allows an all-round understanding of the issues facing
stakeholders. Globalization, trade, policy, climate change, supply-chains, business structures
and stakeholder preferences, consumer preferences all have profound effects on the
sustainability of farming systems. (Furthermore the aggregate effects of decisions in farming
systems also have significant spill-over effects into related sectors.)
a) Globalization. Globalization means more intensive competition, significant global
trade flow and market opening. Supply side adjustment and product differentiation
becomes more and more important. At the same time, with the increasing global
trade flow the risk of food safety, animal and plant health is higher too. Structural
adjustment is inevitable.
b) Trade liberalization. Trade liberalization further broadens international agricultural
trade, increases international competition and therefore the need to improve the
competitiveness of agricultural market players.
c) Climate change. Increasing concentration of CO2 and the higher average temperature
may result in higher yields. The letter increase may be limited by the difficulties in
the water supply. Agriculture is also an important climate influencing factor: land
management adjusted to the changing climatic conditions may limit unintended
changes.
d) New sources of demand. Increasing attention is focused on renewable energies (e.g.:
agriculture based bio fuels) as resources of carbohydrates are limited, their price is
increasing and both fossils and nuclear energy are accompanied with unfavorable
environmental effects.
e) Structural reforms. The Lisbon strategy aims to strengthen economic growth, broaden
employment and improve competitiveness while at the same time insuring
sustainable utilization of natural resources.


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Agriculture/ agricultural activity (Figure 1) under the abovementioned circumstances could
be sustainable if it is backed up also by a sustainable agricultural policy.

Figure 1
Sustainable agriculture
Agriculture/agricultural activities
(Land use - food-feed production, biofuels,
forestry, fishery)
bearable
Sustainable
from the point of view of
environment
Sustainable
from the point of view
of economy
Sustainable
from the point of view of
society
viable equitable


IF:
Agricultural activity responds
the old and new challenges such
as:
enhancement of environmental
quality
preservation of natural resources
climate change -
soil erosion, soil depletion
nutrition loading
desertification
eutrophication
water management +flood
management (integrated approach
- agriculture as a cause and a
solution to flooding)
waste management
biodiversity

An agricultural policy is sustainable if it is 1. aimed at certain well defined goals and 2.
equipped with adequate instruments to help stakeholders to reach these goals.
Goals that should be aimed at and policy tools to be used by sustainable agricultural
policies
In environmental context agricultural policy instruments should contribute to:
– conserving resources (e.g. Farmers should diversify the spatial organization of their
fields through the insertion of new patches of natural vegetation well connected with
the surrounding habitat. The presence of vegetation (hedgerows) along the farm
boundaries reduces windspeed thus minimizing soil loss by wind erosion and water
loss by excess of transpiration./ Minimum tillage and cover cropping management can
Agricultural activity fulfills
the requirement of
competitiveness under the
circumstances of liberalized
trade and globalization
Farm operations are viable,
rentable, economically,
technically efficient
Is characterized by efficient
use of resources,
diversification of income
sources within farm families
(income is ensured),
sufficient adaptability,
minimized dependency on
direct and indirect subsidies
Agricultural activity matches
consumer’s needs: satisfies
human food and fiber needs, the
need for healthy modern nutrition
provides employment of rural
population and access to
resources and social services
enhances the quality of life for
farmers and society as a whole
maintains material and non-
material cultural heritage
contributes to the catching up of
rural areas
Changes in agricultural structures
are bearable by rural society
Inter-generational continuation of
farming activity is ensured
to
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be used to conserve soil. In irrigated orchards drip irrigation and irrigation planning
can be used to conserve water. )
– using renewable resources
– adjusting to local environments
– managing ecological relationships (e.g. In organic olive orchards minimum tillage
can be used as well as mulches, minimizing disturbance. Cover cropping and an
ecological infrastructure can be used to enhance beneficial biota and beneficial insects.
Management of pruning residues, cover crops and animal manures recycle nutrients.
Insect pests, diseases, and weeds can be managed with the use of cultural practices,
mass trapping methods and biological control. Patches of natural vegetation provide
important habitats for the propagation and protection of a wide range of natural
biological control agents of agricultural pests.)
– minimizing toxics (e.g. use of organic farm regulations/ The use of trap crops can
drastically reduce the quantity of pyrethroids sprayed in the environment. This broad
spectrum insecticide can be used only in a small area and not on the crop. The
reduction of the use of insecticides enhances beneficial insects in the agroecosystem. It
allows the natural control of other important pests. By not applying insecticides
directly on the target crop, there can be a reduction in the amount of insecticides used,
which greatly benefits human and environmental health.)
– diversifying (e.g. Undisturbed areas of native species encourage the creation of a
more complex and diverse agroecosystem with a variety of living organisms.)
– managing whole systems (Landscape ecology and geographical information analyses
emphasize a whole-system approach of the agricultural landscape focusing the
attention on the relationship between farms and natural systems.)
– maximizing long-term benefits (e.g. By reestablishing the balance between an exotic
weed and its herbivorous pest, certain insects act as a permanent weed management
tool.)
In economic context agricultural policy instruments should contribute to:
– eliminating market distorting effects (e.g. distortion of input markets through
machinery support)
– producing competitive outputs
– decreasing policy-related transaction costs
– diversifying income sources of farms
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– establishing and implementing special design methodologies (Appropriately
designed farming methods are essential for achieving the objectives of sustainable
farming systems. E.g. Designing and Disseminating Ecological Production Systems
for Perennials.)
– finding the best-management-practice options
– creating instruments to enable producers using sustainable practices to market
their goods to a wider public.
In social context agricultural policy instruments should contribute to:
– finding strategies that broaden consumer perspectives, so that environmental
quality, resource use, and social equity issues are also considered in shopping
decisions.
– valuing health (e.g. use of native medicine, cultural celebration, healthy food
education and ecological restoration.)
– empowering people (An agri-environmental group can promote an ecological
knowledge system in the rural area.)
In order to make sure of reaching the goals aimed at assessment tools have to be used.
For sustainability evaluation of production systems, a variety of assessment tools has been
developed in the past, including Life Cycle Assessment (LCA), Cost–Benefit Analysis
(CBA), Environmental Impact Assessment (EIA) and Sustainability Standards with
Principles, Criteria and Indicators (PC&I). These and new ones help measuring the level of
sustainability. (Van Cauwenbergh et al., 2007)
In order to attain the objectives agricultural policy has to be backed up by a mix of policy
instruments that are simple, transparent, adaptive, accepted by the whole society and shaped
through a targeted approach. The aims of funds have to be dissociated. One specific objective
should be attributed to one payment. (Certain payments with multiple objectives e.g. direct
payments need to be restructured, not necessarily abolished)







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