# CE2004088EN.01053801.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/538 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/538

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(2004/C 88 E/0550)

WRITTEN QUESTION E-0813/04

by Johanna Boogerd-Quaak (ELDR) to the Commission

(15 March 2004)

Subject:   Agri-environmental payments

Subject:

On 5 February 2004 I had the honour to host a conference on agri-environmental programmes, ‘How to improve agri-environmental measures for biodiversity and sustainable use’, organised by IUCN.

During that conference critical remarks were made about the calculation of agri-environmental payments as based on the current rules of the Rural Development Regulation (EC) No 1257/1999 (1).

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| 1. | Has the Commission considered that the current basis for agri-environmental payments, as laid down in the Rural Development Regulation (EC) No 1257/1999, is not satisfactory in all situations? |
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1.

Has the Commission considered that the current basis for agri-environmental payments, as laid down in the Rural Development Regulation (EC) No 1257/1999, is not satisfactory in all situations?

| 2. | Has the Commission considered proposing to base agri-environmental payments in the future on the delivery of public goods? |
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2.

Has the Commission considered proposing to base agri-environmental payments in the future on the delivery of public goods?

| 3. | Has the Commission considered steps in this respect in the context of preparing the new Rural Development Regulation and in the WTO negotiations on the rules for the Green Box of the Agreement on Agriculture? |
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3.

Has the Commission considered steps in this respect in the context of preparing the new Rural Development Regulation and in the WTO negotiations on the rules for the Green Box of the Agreement on Agriculture?

Answer given by Mr Fischler on behalf of the Commission

(28 April 2004)

(28 April 2004)

The conference hosted by the Honourable Member certainly has contributed to a very useful reflection on the current design of agri-environment measures and possible approaches for their future evolution. The Commission has taken note of the points raised during the conference, including the critical remarks. In the case of measures with such a broad uptake under a great variety of objectives and regional/local conditions it is to be expected that weaknesses can occur and be observed.

| 1. | Agri-environmental payments are granted for voluntary commitments going beyond ‘good farming practice’. The reference level of ‘good farming practices’ represents at least statutory requirements with which farmers are expected to comply without being paid. The current basis for agri-environmental payments is article 24 of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations. Agri-environment payments are calculated on the basis of income foregone, additional costs resulting from the commitment given by a farmer, and — where deemed necessary to facilitate a sufficient uptake of the measure by the farmers — an incentive element covering transaction costs. These calculations reflect average cost/income situations in an area covered by a programme and not the situation in an individual holding. |
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1.

Agri-environmental payments are granted for voluntary commitments going beyond ‘good farming practice’. The reference level of ‘good farming practices’ represents at least statutory requirements with which farmers are expected to comply without being paid. The current basis for agri-environmental payments is article 24 of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations. Agri-environment payments are calculated on the basis of income foregone, additional costs resulting from the commitment given by a farmer, and — where deemed necessary to facilitate a sufficient uptake of the measure by the farmers — an incentive element covering transaction costs. These calculations reflect average cost/income situations in an area covered by a programme and not the situation in an individual holding.

| 2. | The Commission considers its agri-environment policy as a reasonable and justifiable way of encouraging the provision of public goods in the field of the environment by farmers. Basing agri-environmental payments on the above described principle of calculation of farmers' costs incurred/income foregone allows a desired outcome to be achieved with respect to the delivery of public goods at lowest cost. Weaknesses and difficulties in the practical implementation identified are at present under examination and the Commission will, on this basis, make appropriate proposals for the future design of agri-environment in the framework of Rural Development. |
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2.

The Commission considers its agri-environment policy as a reasonable and justifiable way of encouraging the provision of public goods in the field of the environment by farmers. Basing agri-environmental payments on the above described principle of calculation of farmers' costs incurred/income foregone allows a desired outcome to be achieved with respect to the delivery of public goods at lowest cost. Weaknesses and difficulties in the practical implementation identified are at present under examination and the Commission will, on this basis, make appropriate proposals for the future design of agri-environment in the framework of Rural Development.

| 3. | The principle is in full compliance with World Trade Organisation agreements regarding support under the Green Box. Any envisaged change in approach has to be carefully considered against this background. |
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3.

The principle is in full compliance with World Trade Organisation agreements regarding support under the Green Box. Any envisaged change in approach has to be carefully considered against this background.

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(1)  OJ L 160, 26.6.1999, p. 80.

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