THE COMMON AGRICULTURAL POLICY REFORM AND THE COMPETITIVNESS OF THE ROMANIAN AGRI-FOOD SECTOR

Authors

  • Irimescu Achim

Keywords:

Common Agricultural Policy (CAP), the multiannual financial framework, CAP reform, CAP two pillars, direct payments capping, CAP greening, set aside.

Abstract

The CAP reform, aiming for the 2014 - 2020, basically envisages maintaining the competitiveness of the European agriculture, while applying higher environmental standards and better managing of the natural resources (water, soil and air). The reform also aims at offering financial support, mainly, to the small and medium sized farms, introduces direct payments capping for the larger ones, and encourages farms to use low environmental impact technologies.

The CAP budget will be frozen at the level of 2013, and thus generating competitiveness problems for the European farmers which apply higher standards (environmental protection, animal welfare, etc.) than the farmers in third countries. Romanian producers will be between the most affected farmers within the EU ones, bearing in mind the direct support they receive as a result of the new requirements/proposals.

Due to the direct payments gradual increase until 2016 (phasing-in), the funds allocated to Romania will increase a lot, by over 7 billion € as comparing with the present financial programming period (2007 – 2013). Nevertheless, the Romanian producers receiving only 203€/hectar, will remain well under the current EU average for direct payments of 270€/hectar. As a result, the competitiveness of the Romanian farmers will continue to be limited, compared to their colleagues from the majority of member states who receive substantial more direct payments.

Moreover, the capping will reduce the funding over a certain ceiling, thus affecting further the competitiveness of the most efficient Romanian producers.

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References

1. Peter Nowicki, Hans van Meijl (2011) : Disaggregated Impacts of CAP Reforms, ECD, pg 316, ISBN 9789264097070
2. Anne McIntosh, (2011) : Common Agricultural Policy towards 2020, TSO (The Stationery Offce), Corporate Author: Great Britain Parliament House of Commons European Committee A, ISBN 9780215562371
3. Daniele Bianchi, Nicolas-Jean Brehon,(2011) The CAP in quest of legimity, Fundation Robert Schuman, European issue nr. 209, Bruxelles
4. Commission Communication on the multiannual financial framework for 2014 – 2020, COM(2011) 500 final
5. Commission Communication on the "CAP towards 2020: solving the future challenges for food, natural resources and territorial", COM(2010) 672/5

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Published

2012-04-30

How to Cite

Achim, I. (2012). THE COMMON AGRICULTURAL POLICY REFORM AND THE COMPETITIVNESS OF THE ROMANIAN AGRI-FOOD SECTOR. Ekonomika Poljoprivrede, 59(Special nu), 148–154. Retrieved from https://ea.bg.ac.rs/index.php/EA/article/view/649