Departament for European Afaiers – Government of Romania Twinning BG 2007/AG/09/UE TWL Common Agricultural Policy and direct payment component implementation in Romania Dr. Cristu CHIRFOT – counsellor Sofia, 12 05 2010 1
Overview of Romanian agriculture � Share of agriculture, forestry and aquaculture in GDP is 9,7%; � Labor force 34,4% - one third of the total employed population works in agriculture domain; Romania has a wide range of soil types with high � potential, about 60% of arable land having a good and medium fertility. � Total country’s territory is 23, 4 million ha � The total agricultural area in Romania is 14,7 mil. ha (61,7%) of the country’s territory � Total arable land - 9,4 mil. ha , 67.6 % of the total agricultural area 2
FARM STRUCTURE IN ROMANIA Farm distribution is highly dualistic Legal Total Number of Utilized Average of utilized units Agricultur agricultural area – UUA status agricultur al utilizing al (ha) units agricultural Area area - UUA (ha) Per unit (UUA) Total 4.256.152 4.121.247 13.906.701, 3,4 3 Individual 4.237.889 4.103.404 9.102.018,2 2,2 farmers Legal 18.263 17.843 4.804.683,1 269,3 persons 3
Common Agricultural Policy – implementation in Romania In February 2005: European Commission has launched Lisbon Strategy The strategy was ment to offer solutions for the European Unions need regarding the imbold for economic growth, creation of new jobs and increse of competitivity due development of global market. The strategy was focused on providing fair and better living standards by offering a sustainable natural and social environment Have been established basic principles regarding PAC contribution to the strategy, thus, increasing economic performance, competitiviness in concordance with sustainable and judicios use of natural resources, a sound management. 4
CAP actors UE Global WTO Farmers OECD/FAO Tax payers Traders Consumers ACP countries- (Statele din Common zona Africa, Caraibe ş i Stake-holders administration Pacific) and farmers organizations Agricultural LDCs Civil society (NGOs, Copa Policy Cogeca) ... MERCOSUR - (State Sud ş i Central Americane) CAN - (Comunitatea Andin ă ) BRIPS countyries ... European Enlargment / Health Check Challanges 5
CAP objectives for which Romania pleeds as defined in Art. 39 of the Treaty on the Functioning European Union • to increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour; • thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture; • to stabilise markets • to assure the availability of supplies ; • to ensure that supplies reach consumers at reasonable prices. In working out the common agricultural policy and the special methods for its application, account shall be taken of: (a) the particular nature of agricultural activity, which results from the social structure of agriculture and from structural and natural disparities between the various agricultural regions; 6
CAP Context CAP reform – “Health check ” November 2007- 28 november 2008 (Reg 73/2009) Rural development Structural Funds Regulation of 2005 Change Development of global markets, increase of Reform of Comon market organizations, 2005-2007 : competition sugar, wine, fruts and veg. FEADR A single common WTO - Doha Round organization by published WHO/FAO – concerning Reg 1234/2007 signals Financial In 2003 – starts the process Perspective International trade of decoupling introduction relations of SPS, and for NMS the 2007-2013 simplified SAPS. EU – Council from Enlarged EU October 2002 EU 25 MTR 2002-2003 Enforced finanvial EU 27 framedue to enlarged EU …+3 EU AGENDA 2000 7
European Agricultural Model in EU The Model is based on a multifunctional egriculture, competitive, sustainable, social and covering all teritory. Agricultural policy – to be based on the sinergy between agriculture and rural development policy, as premises for social and economical development of rural areas Economic viability – market orientation and agriculture competitiviness by direct payments support Rural society development – essential element Food security whithin EU and contribution as global actor Environment integrity, sound use of resources, increase afforestation (joudicious water and soil management fertilizersa and oils, alternative energy for irigations pumps and ilumination), big projects EERP from 2009. Definition of public goods 8
Results for Romania Health Check of CAP Prolong possibility to apply SAPS until end 2013. Romania obtained the possibility to top up direct • payment with 50% rather than 30% from the level of direct payments applied in Community in 2004, from the national budget The CNDP on area is increased with approx. 40 euro, than the classical top up of 30%. The provision is • available for 2012-2012, afterwards the top up is not justified any longer. Under Council Regulation (EC) No 2012/2006, Member States applying the SAPS will have to implement • the SMRs as part of cross-compliance as from 2009. Experience with the other Member States has shown that setting up this element of cross-compliance was facilitated by a 3-year phasing-in period. A proposal is envisaged to apply the same 3-year phasing-in period for the Member States applying the SAPS – this period would start in 2009 for all except Bulgaria and Romania, for whom it would start in 2012. Animal welfare shall be introduced into the scope of cross compliance as of 1 of January 2016 for the • dead line of implementing the mandatory cross compliance request for farm animal welfare. Art. 68 Specific Support – granting from 2010 the sensibles sectors, as follows, 22,47 thou euro support • scheme to milk sector milion euro according to Article 68(1)(b), and 3,098 thou euro for granting specific support schemes for improving the quality in the organic farming sector in accordance with Article 68(1)(a)(ii) 9
Future of CAP • Romania will support the maintaining of the present CAP structure, based on two pillars (First pillar - direct payments and market mechanisms and Second pillar – rural development policy), but also with a sufficient strong First pillar able to assure a decent and equitable living standard for farmers , to avoid the abandonment of agricultural production, lands, rural migration in order to maintain the specificity of local traditions (that bring added value to products) and agricultural works. • Romania also considers as a necessity the equitable distribution of direct payments at European level by increasing the financial allotment for the new member states , in order for this to lead to the increase in productivity and competitiveness of the European agriculture as a whole. 10
CAP framework - 2007-2013 FEGA FEADR PILLAR I PILLAR II Politica de Direct payments dezvoltare rural ă And Market measures Environment Food supplier Rurality and function and economic social function function. Agriculture, sustainable rural areas and natural resources 11
Institutions involved in CAP implementation Ministry of Agriculture, Forests and Rural Development • - MAFRD Paying and Intervention Agency for Agriculture - PIAA • Paying Agency for Rural Development and Fisheries - • PARDF Competent Authority • Coordination body of the paying agencies • Competent Authority (MAFRD) PARDF PIAA UE Coordination Body (MAFRD) 12
FIRST PILLAR – DIRECT PAYMENTS POLICY SAPS implementation 1. Single area payment scheme (SAPS) Romania decided to implement SAPS from 2007, after HC of CAP until 1 of January 2013 Legal basis: R 1782/2003, R 1973/2004, Reg. 796/2004, after HC CAP R 73/2009, R 1120/2009. PIAA implements support measures for farmers financed from European Agricultural Guarantee Fund – EAGF as direct payment under SAPS and support measures financed from national budget as Complementary National Direct Payments – CNDP, other direct payments and state aids SAPS starts in 2007 – phasing in according art. 143a of 1782/2003, as follows: • Community as constituted on 30 April 2004: • — 25 % in 2007, • — 30 % in 2008, • — 35 % in 2009, • — 40 % in 2010, • — 50 % in 2011, • — 60 % in 2012, • — 70 % in 2013, • — 80 % in 2014, • — 90 % in 2015, • — 100 % as from 2016. 2. CNDP for vegetal and animal breeders sectors are authorized by the European • Commission on annual basis. 13
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