Market Intervention Public Intervention & Private Storage Aid - - PowerPoint PPT Presentation

Market Intervention

Public Intervention & Private Storage Aid

• Part of CAP for wheat, barley, maize, rice, meat, butter, skimmed milk

powder, sugar, olive oil, flax, pigmeat, sheepmeat, goatmeat

• Reduction in price and income volatility
• Run by EU; delivered in UK by Rural Payments Agency
• Powers will transfer to Secretary of State, Scottish Ministers, Wales

and NI.

• Not currently used. Last UK stock of SMP sold 2019. Beef and sheep

not used in 20 yrs; limited SMP and butter 2015-18, pigmeat 2015, 16

Public Intervention & Private Storage Aid

UK Agriculture Bill

• Clause 20 (England) and similar

for Wales, NI

• Modify EU law on PI/PSA so it

ceases to have effect otherwise that in exceptional market conditions; or alter its effect in the meantime. Scottish Agriculture Bill

• Clause 5
• Modify EU law on PI/PSA so it a)

ceases to have effect; b) ceases to apply temporarily; c) simplify

• r improve op.eration

Crisis Powers

• European Commission under Common Market Organisation

Regulations on “exceptional measures”

• “Market disturbance” – significant price rises/falls internal or external

market – can “take the measures necessary”

• Specific measures re animal disease, loss of consumer confidence due

to public, animal or plant health risks

• Catch all “emergency measures to resolve specific problems”, eg 2018

Baltic flooding

Crisis Powers

• 2016 €350m EU (€30m in UK) for

milk and other sectors re Russian import bans

• 2017 Italian earthquakes.

Flexibility for Italy to support

• 2019 €50m (+domestic match)

for Irish beef and veal – Brexit

• uncertainty. Reducing

production and restructuring – quality schemes, market diversification, sustainability

• Crisis reserve €2800m held back

from direct payments, disbursed later if not used

Crisis Powers

UK Agriculture Bill

• New power for Secretary of State

to declare “exceptional market conditions” – severe disturbance in agricultural markets

• Triggers powers to give financial

assistance to agricultural producers whose incomes are adversely affected – grant, loan, guarantee &c

• PI/PSA can be invoked

Scottish Agriculture Bill

• European powers retained, in

hands of Scottish Ministers

• PI/PSA still available