LV position on CAP after 2020
Priorities of Latvia
of the Common Agricultural Policy (CAP) after 2020
• Regardless of possible changes in the structure or amount of the next MFF, CAP must remain a strong policy.
• Latvia does not support such a significant reduction in the budget of the CAP, given that the new policy sets ambitious new objectives and given the fact that the CAP must meet the goals set out in the EU Treaty. It is important for Latvia to maintain a targeted, effective and strong EU common agricultural policy, in which all EU farmers are provided with fair and equal support.
• EU must finally ensure that conditions for all the farmers within the EU are fair and equal. Therefore the convergence process of direct payments that has been lasting for 16 years already – must be concluded as soon as possible in next period.
• The EU average level of direct payments must be guaranteed for Latvian farmers. European Council on February 8, 2013 approved that Latvian farmers in 2020 should receive 75% (196 EUR/ha) of the EU average (260 EUR/ha). The EC proposal foresees that Latvian farmers in 2026 will receive 77% of the EU average (263EUR/ha). Consequently, the proposed approximation to the EU average is only 2%.
• Latvia does not support the reduction of rural development financing for Latvia. Financing should be maintained at the amount of current period (2014-2020). For countries whose CAP funding per hectare (in both pillars) does not reach 90% of the EU average (EUR/ha), rural development financing should not be reduced. In the existing period, Latvia had an economically unjustified 8.1% reduction in the envelope.
• Latvia welcomes the continuation of the Single Area Payment Scheme, the support scheme for small farmers, support for young farmers and voluntary coupled support.
• Latvia supports the Commission proposal on the need to set thresholds for the reduction of direct payments (i.e. capping), however, certain levels should be based on the socio-economic justification made by the Commission.
• Latvia considers that the proposed Conditionality is too strict and certain conditions would be more appropriate as compensatory payments under the ecosystem or agri-environmental measures.
• The distribution of the EU funding for rural development must be based on the conditions and criteria that encourage the development of those EU’s rural areas that are significantly lagging behind the average level of the EU’s rural areas. Latvia must attain the average development level of EU’s rural areas.
• Recent market crises and events in the global markets have proved that the current market measures and risk management instruments need to be improved. We should aim for measures that are capable for timely reaction and provide necessary support for farmers in situation of market crises and instabilities.
• It is crucial to strengthen the farmers’ position in the food supply chain as farmers are left with the lowest bargaining power.
• Persistent work on simplification process must be carried out to reduce administrative burden.
• Latvia acknowledges the new challenges Europe is facing but the main aim of CAP to provide EU citizens with high quality and safe food has to be maintained.