Sustainable Food CAP Health Check Reform Nov '08

There is greater focus now on the need for additional rural development funding (through increased 'modulation') to pay for the new challenges of climate change, renewable energy, water management and biodiversity:

· Climate and renewable energy are priority areas following the agreement reached on the 2020 targets to reduce CO2 emissions by at least 20% and to set a target of 20% of energy from renewable sources - including 10% of roadfuels - reached at the March 2007 European Council meeting. ‘Agriculture and forestry can make an important contribution in providing the feed stocks for bio-energy, in carbon sequestration and in further reducing GHG emissions.’

· The Water Framework Directive, agreed in October 2000, will start to be fully implemented in 2010 to 2012. The proposal states "Agriculture and forestry as main users of water .. resources have a major role to play in sustainable water management .., an increasingly important part of the adaptation strategy to deal with unavoidable climate change" and

· Biodiversity - ember states have committed themselves to halt biodiversity decline by 2010, a target which the Commission admits it is increasingly unlikely to meet. As "a large part of Europe's biological diversity is dependent on agriculture and forestry ... the efforts to protect biodiversity will have to be increased ... in the light of expected adverse effects of climate change and increasing water demand".

As a general principle, the Commission proposes that rural development support shall be targeted to operations which contribute to these new challenges . The Parliament voted to add additional challenges to this list. In order to meet these new priorities, member states will be encouraged to focus support on actions which could include:

· Axis 1: improving the competitiveness of the farming and forestry sectors.

Targeting axis 1 support towards energy, water and other input saving equipment, and to on-farm production of renewable energy and more sustainable ways of biofuels processing;

· Axis 2: improving the environment and countryside

Using axis 2 agri-environment and forestry measures to enhance biodiversity by conserving species-rich meadows and extensive forms of production; also better management of water resources and actions to curb emissions of nitrous oxide and methane and help with carbon sequestration;

· Axis 3: Rural quality of life and diversification of the rural economy

Under axis 3, support should be given to co-operation and diversification projects into bio-energy production. Leader groups should be encouraged to pick up climate change and renewable energy as cross cutting themes in their LDS (local development strategies);

There is also the Leader progamme (sometimes referred to as axis 4) which is not separately funded, but draws funds from axes 1 and 3. RDAs are responsible for axes 1 and 3, and for the Leader programme, and Natural England for axis 2, to which 80% of the funds are allocated in England.

Full Report (left hand side for download). The NFU press release says that here will be little difference for the average British farmer). The Country Land and Business Association finds the reforms to be a ‘missed opportunity' .

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