CAP Health check

The goal of the legislative proposals of the Commission’s Health Check was to focus attention on three main fields:
 

the simplification and efficiency increase of the direct payment system (CAP I pillar); 

•  the role of market organization measures and developing market orientation;
•  meeting new challenges (risk management, climate change, bioenergy, water resources management and biological diversity).
   

Several topics created a lot of discussions between the Member States but the issues, which created the most disagreements, were modulation, the simplification of cross-compliance system, Article 68 and the abolishment of the milk quota. During the Council of Agriculture and Fisheries Minister of 19 – 20 November 2008, a political agreement was reached regarding the compromise text of Health Check draft legislation.

 

The Estonian positions regarding CAP Health Check were the following:

Full decoupling of direct aids from historical references

• Common implementation simultaneously and on comparable grounds in all similar Member States
• The equal treatment of farmers in paying basic subsidy (enforcing Flat Rate EU 27) for continuing agricultural activities
• Defining the basic service provided to the society and, according common agreements, to ensure substantially reduced support rates for people who have finished production, but maintain agricultural land in good condition based on minimal requirements.
   

The harmonization and simplification of direct aid administration

•  According to the joint declaration of new Member States, the continuation possibility of SAPS until 2013 would be important. In other words, continuation until the time, when new measures of CAP, which may differ both from SPS and SAPS, but include the best elements from both systems, can be implemented.
   

Cross-compliance 

•  We support the simplification and the optimization of administrative burden;
•  A consolidated checklist on the level of the Community, which accrues from the requirements of 18 directives, has to be compiled ;
•  A supplementary clarification is needed about the conditions of the decrease in subsidies with the purpose of harmonization between Member States;
•  We support a step-by-step conversion to the cross-compliance system and full implementation should not take place before reaching the 100% support level direct aid when compared to EU-15.

Modulation

•  We support the increase of weight of rural development measures in EU´s budget through compulsory modulation;
•  In the framework of modulation, at least 50% or resources deriving from CAP Pillar I, should be redistributed between the Member States according to EAFRD allocation criterion.

Rural development

•  The purposes of rural development measures under Pillar II of CAP should continually be to assist the structural adaptation of agriculture, promote environment-friendly activities and enhance diversification of economic activities.
•  Bringing decision-making process to local level improves cooperation between sectors and mobilization of regional potential, as well as enables to involve the local mental potential in the development of local life.
•  We are of the opinion that in the future, the support for the development of rural enterprise (including agricultural enterprise) should be as integrated as possible. At this point, an important step has been taken with the 2003 reform.
   

Supply management instrument

•  We support the abolishment of compulsory set- aside scheme;
• To harmonize the minimum size of agricultural parcel in respect of which an aid application may be made in all Member States up to 1ha;
•  The final abolishment of sugar quota;
•  Preparation for the abolishment of milk quota after 2015 and the increase of quota during conversion period;
•  We support the step-by-step liquidation of intervention and its replacement with crisis management.

Risk management 

•  We expect fast solution for this question, but not through the means of Community wide risk management schemes;
•  We support proposals, which further develop private insurance schemes by producers, inclusion and the diversification of risk management instruments in order to dispel risks.

Energy crops aid scheme 

•  We support the abolishment of energy crops aid scheme in the future.

Equalization of competition

•  Prescribing an upper limit to combined assistance hectare;
•  A more transparent state aid reporting for EU-27;
•  Total sum of state aid limited with a relative maximum in mid-term perspective (e.g. % out of total production) on the level of a Member State.