Opinion on the Contract between Agriculture and Society (94/C 393/18)

On 23 March 1993, the Economic and Social Committee decided, in accordance with Article 23(3) of the Rules of Procedure, to draw up an Opinion on the Contract between Agriculture and Society.

The Section for Agriculture and Fisheries, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 12 July 1994. The Rapporteur was Mr de Paul de Barchifontaine.

The Economic and Social Committee, at its 318th Plenary Session (meeting of 14 September 1994), adopted the following Opinion by a large majority, with one vote cast against and 3 abstentions.

SUMMARY

In recent years, the agricultural environment has been transformed with consequences which are still unclear. This transformation is connected with:

- the reform of the Common Agricultural Policy adopted on 22 May 1992, and the emergence of a European rural development policy;

- the conclusion on 15 December 1993 of the Uruguay Round of multilateral trade negotiations, which will affect the operation and even the approach of the CAP;

- the collapse of Communist regimes in central and eastern Europe, followed by the Soviet Union itself;

- the forthcoming enlargement of the European Union to include Austria and several Nordic countries, already members of the European Economic Area.

Attention also needs to be given to likely trends on world agricultural and foodstuffs markets, which have been disrupted by a surplus of supply over solvent demand and by competition among exporting countries.

In a world in the throes of radical changes, this Opinion is intended, in the spirit of the 'Granada Document', to clarify agriculture's place and many and valued functions in society.

It attempts to bring together aspects of a 'contract' between agriculture, the rural world and society in the European Union. To that end, it stresses the complementarity of rural activities and between town and country, the need for effective guidance of agricultural production, and action to benefit the individual, the family and society, to improve mutual understanding between farmers and other citizens.

The Opinion concludes with an appeal for a European Union rooted in greater solidarity and openness than hitherto.

AGRICULTURE, THE RURAL WORLD AND SOCIETY IN THE EUROPEAN UNION

1. Introduction

1.1. This Opinion is based on the 'Granada Document' (see the Appendix, which forms an integral part of the Opinion) and a number of other documents which analyze the sector's problems, in particular the following:

- COM(88) 501 final: The future of rural society ();

- ESC Opinion on this Commission text ();

- ESC Opinion on environment and agriculture ();

- ESC Opinion on disadvantaged island regions ();

- ESC Opinion on a policy for upland areas ();

- ESC Opinion on the contribution of the cooperative sector to regional development ();

- ESC Opinion on the LEADER initiative ();

- ESC Opinion on young farmers and the problem of succession in agriculture ();

- ESC Opinion on development and future of the CAP ();

- ESC Opinion on the GATT Uruguay Round ();

- ESC Opinion on the effects of the CAP on the social situation of farm workers in the Community ().

1.2. In all these documents on the problems of rural society, the Committee has reviewed the problems existing at the time and proposed measures to prevent other problems arising, while encouraging development.

1.3. Unfortunately, in relation to the objectives, which were relevant in political terms, the measures taken and resources allocated have been very limited, disappointing the expectations of the people of very extensive regions of the European Union.

1.4. Once again, the Committee is taking the initiative to draw attention to the situation of rural society in the European Union, and calls for the creation of practical conditions to support the rural population.

1.5. Society has a duty towards the rural population to stop the deterioration in conditions where it is still continuing.

2. Preliminary remarks

2.1. Agriculture is a strategic sector for all countries:

- it produces high quality food and non-food products, as well as services linked to its operation (farm holidays, leisure activities, etc.);

- it helps to protect the environment and participates in rural planning: this function is also important in peripheral urban areas;

- it plays an irreplaceable role in peopling the countryside, making full use of it and encouraging rural development;

- it is the driving force, in the modern economy, of a complex, large-scale system (the agri-food system), and as such is an important source of income and employment in rural and other areas. It provides jobs in many service-sector enterprises and in the trade and industry which supplies agricultural inputs, as well as in the agri-processing industry and distributive trade;

- it helps to maintain the vital equilibria, the recycling of carbon dioxide and fixation of carbon, the production of renewable raw materials, management and protection of soils, promotion of bioenergy, etc.;

- it is a direct source of jobs, above all in labour-intensive production;

- it guarantees and encourages a widespread distribution of incomes - especially income from land - which is highly desirable in socio-economic terms;

- it contributes to the diversity of customs and cultures.

2.2. Rural society fulfils many indispensable functions both for the economic activity of its inhabitants and for society as a whole.

2.2.1. The rural world constitutes the vital economic area and the place of origin of a large sector of the population. More than half the population of the European Union lives in rural areas, which represent nearly 80% of the surface area of the 12 Member States.

2.2.2. Great importance has been given in recent years to the key role agriculture must play in conserving nature (water, soil, air, flora and fauna), and thus ensuring a healthy environment to the benefit of all.

2.2.3. The countryside is one of the foundations for production of natural, healthy produce and raw materials. It is important that agriculture-related activities should be located, as far as possible, in the countryside in order to help with job creation.

2.3. The excessive emigration from the countryside and urban concentration of the population leads to demographic disadvantages (imbalance in the distribution of the population, both as a whole and by age groups), economic disadvantages (excessive costs involved in the concentration of the population) and social disadvantages (disappearance of rural traditions and culture, many problems linked with life in large agglomerations).

2.4. Agriculture in the European Union is heterogeneous. Alongside the efficient, highly capitalized and profitable enterprises, there are still medium-sized peasant holdings, mainly in upland and disadvantaged areas, whose economic situation is far from ideal. Such holdings work 55% of the useful agricultural surface area of the European Union. Their role in terms of human settlement, maintaining jobs, and safeguarding the natural and cultural heritage, is essential and irreplaceable.

2.5. The General Agreement on Tariffs and Trade (GATT), through successive 'Rounds' of negotiations, seeks to establish a system of gradual liberalization of trade. It is useful to remember that the system of variable levies applied to the import of agricultural products into the EC was agreed at the Dillon Round (1961-1962), the Kennedy Round (1964-1967) and the Tokyo Round II (1973-1979), only in exchange for certain concessions which distort Community preference - one of the three principles of the CAP (the others being the unity of markets and financial solidarity).

2.5.1. The Committee, while taking note of the commitments entered into recently by the EU in the GATT framework, feels duty bound to draw the attention of the Council and of the Commission to the serious negative consequences of the new agreement for the production and income of European farmers.

2.5.2. The Committee hopes that the future World Trade Organization intended to replace the GATT will devote the necessary attention to the problem of social and ecological costs, levels of which vary considerably from one country to another.

2.5.3. The Committee regrets that exchange rate instability frequently gives rise to unfair competition.

2.6. Moreover, the liberalization of agricultural trade - decided in December 1993 after the long, difficult and complex negotiations of the Uruguay Round - will contribute to establishing a more appropriate overall relationship between supply and demand on a world scale.

2.7. At the same time, reorganization and restructuring of its agriculture and its CAP are becoming inevitable for the European Union. It will have to substantially reduce its subsidized exports and improve access to its market because of the simultaneous effect of provisions on import quotas granted to third countries and reduction of customs duties.

2.8. Such measures will have some negative consequences for rural society, which according to the COPA will suffer a loss of agricultural jobs estimated at 750,000 full-time posts, further set-aside of useful agricultural land estimated at about 10 million hectares, further depopulation of the countryside and impoverishment resulting from a fall in the money value of land, buildings, woodland, etc.

3. The main points of a contract between agriculture, the rural world and society in the European Union

CONTRACT:

Legally, a 'contract' is an agreement whereby one or more persons assume an obligation towards one or more others to provide, do or refrain from doing something. In this Opinion, the term has a political and social sense, signifying a consensus among the members of society.

3.1.

The Granada document

3.1.1. In the spirit of the Granada document:

3.1.1.1. The Committee feels that any legislative action in the farming sector must cater for: safeguarding human rights for the whole population, protection of health, maintenance and improvement of the quality of the environment, careful, sensible use of natural resources and sound application of technical and biological progress (the scientific challenge).

3.1.1.2. The Committee considers that environmental protection must be incorporated in farming policy, as in other policies.

3.1.1.3. The Committee feels that it is important to:

- reinforce the synergy between farming, the environment and sustainable development;

- ensure consistency between economic growth and sustainable development, designed to safeguard and improve the quality of life and the purchasing power of the entire population;

- strike a balance between economic development, social development and regional development.

3.1.1.4. The Committee believes that priority should be given to attaining the objectives of international cooperation and solidarity between peoples, while taking into account the world famine problem and the difficulties of developing farming in countries haunted by poverty and destitution.

3.2.

The interdependence of rural activities and the complementarity of town and country

3.2.1. Family farming based on personal responsibility has been a hallmark of European civilization. It has contributed to economic and social development, adjusting its structures, production and management methods. Family farming is still intrinsic to a type of society characterized by freedom, respect for the patrimony and family-based living and working communities. These characteristics should be preserved.

3.2.2. Farming cannot be viewed separately from the upstream ('agri-supply') and downstream (agricultural trade and services, food and distribution) sectors. It is an integral part of the economy and social activity. It is a key element in rural life, and is fundamental to civilization and society.

3.2.3. Problems of rural society can only be solved through an active and balanced partnership of everyone involved in rural life. The way ahead lies in rural socio-occupational sectors consulting one another, double-jobbing by some workers under fair competition conditions, internally-generated development of the countryside, and provision of outside back-up in the form of capital, infrastructures, the establishment of economic activities, guidance, advice and research services - all this without prejudice to economic intervention by the public authorities which, provided it does not distort competition, is often necessary.

3.2.4. The Committee shares the view that it is necessary to strengthen solidarity and cooperation between town and country.

3.2.4.1. The countryside has had many problems resulting from depopulation, while excessive urban concentration has become difficult - or impossible - to manage, and involves heavy burdens without necessarily giving any extra benefit.

3.2.4.2. Town and country planning must help to strengthen or create growth points, in order to achieve optimal use of space and a balanced, integrated and coherent management of regional resources.

3.3.

Guidelines for agricultural production, and incomes of rural origin

3.3.1. Agriculture producing for large markets must gear its production quantitatively and qualitatively to the needs of the single market and to export possibilities.

3.3.1.1. Food and agricultural services must possess the quality sought by users. Consumers, for instance, want foodstuffs to be a safe, nutritional and agreeable product complying with regulations. They are also interested in whether the production methods used are 'eco-friendly'.

3.3.1.2. Demand trends are influenced by advertising, changes in the distribution sector and the agri-foodstuffs industry, better in-depth knowledge of dietary and food hygiene rules. Alongside mass consumption, there is a growing demand for quality products.

3.3.1.3. World trade in farm products is influenced by the play of supply and demand, but also by other factors, such as the rate of inflation in different countries, exchange rate instability, the existence of restrictions on imports or exports, and unfair competition practices. It is increasingly regulated by GATT, and will soon be covered by the World Trade Organization (WTO).

3.3.2. Agriculture should, in line with the Treaty of Rome, guarantee a secure supply to processing industries and consumers, at reasonable prices.

3.3.2.1. The dilemma now facing Europe is that agriculture is expected to guarantee, at one and the same time:

- in the case of mass products, reasonable prices and security of supply for processing firms and consumers;

- quality products which are ecologically sound;

- protection of the countryside and help in preserving, in both quantitative and qualitative terms, the land it uses.

The costs of these policies must be carefully assessed, particularly in the light of structural aid policies for internal and outlying areas.

3.3.3. Agriculture must defend the countryside. Farmers realise the need for quantitative and qualitative maintenance of their land. In particular, they consider that expropriations on grounds of public need should be justified in technical, economic, social and environmental terms. In addition, compensation should be fair and equitable. Land-use planning and expropriations on ground of public need must therefore be calculated to ensure optimum spatial and socio-economic land utilization.

3.3.4. The future of agriculture and the countryside depends particularly on access to farming for young people. This requires definition and application of measures suggested in the Own-initiative Opinion adopted by the ESC on Young Farmers and the Problem of Succession in Agriculture (CES 573/94 of 27 April 1994).

3.3.5. That future is also determined by the farm sector's attraction potential on the labour market.

3.3.6. Europe-wide alignment of sensible tax arrangements could help agriculture fulfil the major roles the European Union has assigned to it.

3.3.7. Agronomic research and development may no longer be seen exclusively in commercial terms, but should also cater for constraints associated with the multiple functions which farming and rural society are required to fulfil. They must also cover related sectors: food industries, renewable energy, conservation of the environment. Biotechnology and genetic engineering must receive special attention, and the long-term effects of introducing genetically modified organisms into eco-systems cannot be neglected. R & D must also take account of cultural and ethical considerations.

3.3.8. The farming population must have the chance of a reasonable standard of living.

3.3.8.1. Technical progress, the CAP reform and its back-up measures provide opportunities in this direction: compensation for permanent natural handicaps, more efficient farm structures, Structural Fund action - a major means of channelling aid to the poorer regions - and so on. The necessary financial resources must be available on a lasting basis.

3.3.8.2. There should be help in creating conditions favourable to the development of regional production, in order to make incomes more reasonable, in particular for agricultural populations. More specifically, society at large should pay for the environmental services rendered to it by farmers.

3.3.8.3. Previously impracticable solutions are now available, since the isolation of rural centres - which aggravated their depopulation and underdevelopment - can be broken.

3.3.8.4. The opportunities thrown up by technological developments in the fields of transport, energy and telecommunications should be seized urgently, in order to stimulate local growth.

3.4.

Protection and promotion of individuals, families and society

3.4.1. If it is to be of benefit to rural communities, development must entail the establishment and improvement of technical infrastructures (roads, public transport networks, energy, electricity, water supply, waste collection and disposal, etc.), together with careful land-use planning, and efficient public administration.

3.4.2. At the same time, general, technical and vocational training of farmers and farm labourers needs to be strengthened at all levels. Continuing training should become the norm.

3.4.2.1. All aspects of progress (transfer and original research, teaching, development and dissemination of knowledge) have a fundamental role to play.

3.4.3. The Committee welcomes the extension of social policy - necessarily involving cultural concerns - to the social, family and economic protection of workers, particularly farmers and farm labourers.

3.4.4. The Committee is aware of the problems of the rural housing stock, which is in need of renovation, modernization and rebuilding. The sometimes difficult question of coexistence of different generations is related to this.

3.4.5. The following problems should be highlighted in connection with the farm sector and the self-employed in general:

- the position of spouses jointly working or managing farms, and others associated with them (farmers' children);

- holiday arrangements and the establishment of farm locum services.

3.4.6. The Committee is concerned about the living and working conditions of farm labourers and the need to guarantee adequate legal security for seasonal and temporary workers.

3.4.7. Collective action (group farming; cooperation; production, buying, selling, processing and service associations) has a significant part to play in enhancing the standard and quality of life.

3.4.8. Social, family and economic protection represents a bond of solidarity between individuals, between occupations, and between the town and country.

3.4.9. Organizations and local and regional authorities must encourage a closer partnership between town and country.

3.5.

Familiarizing the general public with farming

3.5.1. The public is not knowledgeable enough about the role and functions of agriculture, although these are primary essentials for mankind.

Apart from the functions already listed under 2.1, it should be pointed out that:

- mostly capital-intensive, agriculture continues to employ a considerable workforce, and stimulates employment in upstream and downstream industries and in the service sector (tourism, insurance, banking, cooperatives, trade, research, consultancy, public and private services, etc.);

- agriculture generates high added-value, contributing to trade figures and the balance of payments;

- farming is an essential activity, helping to maintain and promote biological, ecological, social and human balance on our planet.

3.5.2. Technically, agricultural production is linked to surface area, climate, water and atmospheric conditions; the use of plants and animals makes it a highly sensitive area of activity.

3.5.3. The Committee believes that a continuing effort to inform the public objectively should be made.

3.5.3.1. Public relations campaigns should be organized particularly by the farming community, aiming at various occupational sectors (two-way flow of information), by the public authorities including the European Institutions, by trade associations, by the general, technical and vocational training and education authorities, by campaigning bodies, by the press (specialist and general) and by the other media (radio, TV, etc.).

3.5.3.2. It stresses that this effort to provide information on the importance of agriculture in society and daily life should be included as soon as possible in school syllabuses - and why not in the kindergarten?

3.5.3.3. Information on agriculture should focus on production, the sector's problems and characteristics, farm work and technologies, and foodstuffs (health, diet, cost of food, etc.). Agri-tourism provides an opportunity for fruitful exchanges, and model farms, farm shops and so on are valuable points of contact.

3.5.3.4. Information should be spread widely, and be two-way. In particular, farmers should be conscious of the problems of urban society: they cannot ignore the needs and changing requirements of consumers, the nature of other professions, or the risks, dangers and obligations inherent in numerous economic activities.

3.5.3.5. The Committee feels that experience acquired in the various Member States should be shared.

3.6.

Towards a more cooperative and open European Union

3.6.1. The Committee believes that if current difficulties are to be addressed, the European Union must set up a common project leading to economic and social convergence. Success will largely depend on the level of solidarity among the populations of the Union.

3.6.2. Agricultural policy comprises elements of solidarity between farmers and consumers. As it evolves, it must ensure a rational development of agricultural production which respects the environment, technical progress and optimal use of the factors of production, and guarantees a fair standard of living for the rural population, market stability, and secure supplies and reasonable prices for the consumer.

3.6.3. With a view to future Community enlargement, the Committee feels that the political authorities should give careful consideration to the role to be played by agriculture, which it believes should contribute actively to the consolidation of the European Union.

3.6.4. The Committee is convinced that a dynamic agriculture, supplied with the necessary resources to meet the technical, economic and other challenges facing it, will continue to play a dominant strategic role. This role embraces security of food supply, promotion of the environment, rural land use, and striking a social and human balance.

3.6.4.1. What is best for society and the environment does not necessarily, in this case, tally with what is best in immediate or short-term economic terms.

3.6.5. The bonds of solidarity between the urban and rural areas of the European Union should be strengthened, as should interregional cooperation, particularly in the fields of economic development (e.g. farmers' exchanges), education, training, research, culture and the environment.

3.6.6. A large part of the world's population does not have enough to eat. Hence the vital importance of agriculture, in Europe as elsewhere.

Agriculture is life: there is no future without it.

Done at Brussels, 14 September 1994.

The President

of the Economic and Social Committee

Susanne TIEMANN

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