Opinion of the European Committee of the Regions on ‘CAP reform’

(2019/C 86/11)

Rapporteur-general: Guillaume CROS (FR/PES), Vice-President of the Regional Council of Occitanie Reference documents: Proposal for a Regulation of the European Parliament and of the Council establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulation (EU) No 1305/2013 of the European Parliament and of the Council and Regulation (EU) No 1307/2013 of the European Parliament and of the Council COM(2018) 392 final Proposal for a Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 COM(2018) 393 final Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products, (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union and (EU) No 229/2013 laying down specific measures for agriculture in favour of the smaller Aegean islands COM(2018) 394 final

I. RECOMMENDATIONS FOR AMENDMENTS

COM(2018) 392 final

Amendment 1

Recital 5

Text proposed by the Commission CoR amendment In order to retain the essential Union-wide elements to ensure comparability between Member State decisions, without however limiting Member States in reaching Union objectives, a framework definition for ‘agricultural area’ should be set out. The related framework definitions for ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ should be set out in a broad way to allow Member States to further specify definitions according to their local conditions. The framework definition for ‘arable land’ should be laid down in a way that allows Member States to cover different production forms, including system such as agroforestry and arable areas with shrubs and trees and that requires the inclusion of fallow land areas in order to ensure the decoupled nature of the interventions. The framework definition of ‘permanent crops’ should include both areas actually used for production and not, as well as nurseries and short rotation coppice to be defined by Member States. The framework definition of ‘permanent grassland’ should be set in a way that allows Member States to specify further criteria and allows them to include species other than grasses or other herbaceous forage that can be grazed or that may produce animal feed, whether used for actual production or not. In order to retain the essential Union-wide elements to ensure comparability between Member State decisions, without however limiting Member States in reaching Union objectives, a framework definition for ‘agricultural area’ should be set out. The related framework definitions for ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ should be set out in a broad way to allow Member States to further specify definitions according to their local conditions. The framework definition for ‘arable land’ should be laid down in a way that allows Member States to cover different production forms, including system such as agroforestry and arable areas with shrubs and trees and that requires the inclusion of fallow land areas in order to ensure the decoupled nature of the interventions. The framework definition of ‘permanent crops’ should include both areas actually used for production and not, as well as nurseries and short rotation coppice , as long as they are incorporated in plots of arable crops, to be defined by Member States. The framework definition of ‘permanent grassland’ should be set in a way that allows Member States to specify further criteria and allows them to include species other than grasses or other herbaceous forage that can be grazed or that may produce animal feed, whether used for actual production or not.

Reason

The idea is to encourage agroforestry practices, which are beneficial to the climate and the environment, rather than whole plots of coppices which are, in fact, non-agricultural forest areas.

Amendment 2

Recital 9

Text proposed by the Commission CoR amendment In view of further improving the performance of the CAP, income support should be targeted to genuine farmers. In order to ensure a common approach at Union level for such a targeting of support, a framework definition for ‘genuine farmer’ displaying the essential elements should be set out. On the basis of this framework, Member States should define in their CAP Strategic Plans which farmers are not considered genuine farmers based on conditions such as income tests , labour inputs on the farm, company object and inclusion in registers. It should also not result in precluding support to pluri-active farmers, who are actively farming but who are also engaged in non-agricultural activities outside their farm, as their multiple activities often strengthen the socioeconomic fabric of rural areas. In view of further improving the performance of the CAP, income support should be targeted to genuine farmers. In order to ensure a common approach at Union level for such a targeting of support, a framework definition for ‘genuine farmer’ displaying the essential elements should be set out. On the basis of this framework, Member States should define in their CAP Strategic Plans which farmers are not considered genuine farmers based on conditions such as the share of agricultural income, labour inputs on the farm, company object and inclusion in registers. It should also not result in precluding support to pluri-active farmers, who are actively farming but who are also engaged in non-agricultural activities outside their farm, as their multiple activities often strengthen the socioeconomic fabric of rural areas.

Reason

It is preferable to take account of the share of agricultural income rather than the criterion of income, which might exclude small farms.

Amendment 3

Recital 11

Text proposed by the Commission Amendment In order to give substance to the objectives of the CAP as established by Article 39 of the Treaty on the Functioning of the European Union (TFEU), as well as to ensure that the Union adequately addresses its most recent challenges, it is appropriate to provide for a set of general objectives reflecting the orientations given in the Communication on ‘The Future of Food and Farming’. A set of specific objectives should be further defined at Union level and applied by the Member States in their CAP Strategic Plans. While striking a balance across the dimensions of sustainable development, in line with the impact assessment, these specific objectives should translate the general objectives of the CAP into more concrete priorities and take into account relevant Union legislation, particularly with regard to climate, energy and environment. In order to give substance to the objectives of the CAP as established by Article 39 of the Treaty on the Functioning of the European Union (TFEU), as well as to ensure that the Union adequately addresses its most recent challenges, it is appropriate to provide for a set of general objectives reflecting the orientations given in the Communication on ‘The Future of Food and Farming’. A set of specific objectives should be further defined at Union level and applied by the Member States in their CAP Strategic Plans. While striking a balance across the dimensions of sustainable development, in line with the impact assessment, these specific objectives should translate the general objectives of the CAP into more concrete priorities and take into account relevant Union legislation, particularly with regard to climate, energy and environment. The CAP must explicitly take into consideration the European Union’s equality policy, paying particular attention to the need to promote women’s participation in the development of the socioeconomic fabric of rural areas. This Regulation should help make the work of women more visible, meaning that this work should be taken into account in the specific objectives to be addressed by the Member States in their strategic plans.

Reason

It is crucial to empower women in rural areas.

Amendment 4

Recital 12

Text proposed by the Commission CoR amendment A smarter, modernised and more sustainable CAP needs to embrace research and innovation, in order to serve the multi-functionality of Union agriculture, forestry and food systems, investing in technological development and digitalisation , as well as improving the access to impartial, sound, relevant and new knowledge. A smarter, modernised and more sustainable CAP needs to embrace research and innovation, in order to serve the multi-functionality of Union agriculture, forestry and food systems, investing in technological development , digitalisation and agro-ecological practices , as well as improving the access to impartial, sound, relevant and new knowledge , by taking account of farmers’ knowledge and exchanges between farmers .

Reason

Technological development, digitalisation, agro-ecological practices and knowledge-sharing among farmers will contribute to a smarter, modernised and more sustainable CAP.

Amendment 5

New recital after recital 12

Text proposed by the Commission CoR amendment Narrowing the digital divide in rural areas is essential for maintaining population numbers and economic development, especially for the provision of services. Agricultural digitalisation offers significant potential in the areas of production, marketing and consumer protection, as well as in the protection of natural and cultural heritage in rural areas. However, steps should be taken to ensure that small farms, whose access to new technologies may be limited, can benefit from this, and that technological development does not diminish farmers’ autonomy; they must retain control over the data collected on their farms.

Reason

All farms must be able to benefit from the advantages of digitisation.

Amendment 6

Recital 14

Text proposed by the Commission CoR amendment In order to foster a smart and resilient agricultural sector, direct payments keep on constituting an essential part to guarantee a fair income support to farmers. Likewise, investments into farm restructuring, modernisation, innovation, diversification and uptake of new technologies are necessary to improve farmers’ market reward . In order to foster a smart , sustainable and resilient agricultural sector in all regions , direct payments keep on constituting an essential part to guarantee a fair income support to farmers. Likewise, investments into modernisation, innovation, diversification and uptake of new technologies are necessary to improve the resilience of farms and remuneration through the market.

Reason

Direct payments should help farms become more resilient and promote better revenue through the market in all regions.

Amendment 7

Recital 15

Text proposed by the Commission CoR amendment In the context of greater market-orientation of the CAP, as outlined by the Communication on ‘The Future of Food and Farming’, market exposure, climate change and associated frequency and severity of extreme weather events, as well as sanitary and phytosanitary crises, may lead to risks of price volatility and increasing pressures on incomes. Thus, although farmers are ultimately responsible for designing their on-farm strategies, a robust framework should be set up to ensure appropriate risk management . To this aim, Member States and farmers may be able to draw on a Union-level platform on risk management for capacity-building in order to provide farmers with adequate financial instruments for investments and access to working capital, training, knowledge transfer and advice. In the context of greater market-orientation of the CAP, as outlined by the Communication on ‘The Future of Food and Farming’, market exposure, climate change and associated frequency and severity of extreme weather events, as well as sanitary and phytosanitary crises, may lead to risks of price volatility and increasing pressures on incomes. Thus, although farmers are ultimately responsible for designing their on-farm strategies, a robust framework should be set up to ensure that markets are regulated and risks are prevented as appropriate. To this aim, Member States and farmers may be able to draw on a Union-level platform on risk management for capacity-building in order to provide farmers with adequate financial instruments for investments and access to working capital, training, knowledge transfer and advice.

Reason

Given the increasing number of risks faced by farms, a robust prevention framework is needed.

Amendment 8

Recital 17

Text proposed by the Commission CoR amendment The CAP should keep ensuring food security, which should be understood as meaning access to sufficient, safe and nutritious food at all times. Moreover, it should help improving the response of Union agriculture to new societal demands on food and health, including sustainable agricultural production, healthier nutrition, food waste and animal welfare. The CAP should continue to promote production with specific and valuable characteristics, while at the same time helping farmers to proactively adjust their production according to market signals and consumers’ demands. The CAP should keep ensuring food security, which should be understood as meaning access to sufficient, safe and nutritious food at all times. Moreover, it should help improving the response of Union agriculture to new societal demands on food and health, including sustainable agricultural production, healthier nutrition, food waste and animal welfare , and conservation of agricultural genetic resources . The CAP should continue to promote production with specific and valuable characteristics , such as traditional local products , while at the same time helping farmers to proactively adjust their production according to market signals and consumers’ demands. The CAP should also contribute to meeting the Millennium Development Goals (MDGs) as regards access to food.

Reason

The European Union is still able to preserve many typical traditional products and agricultural genetic resources, which must be promoted.

Amendment 9

Recital 20

Text proposed by the Commission CoR amendment In order to ensure that the Union can respect its international obligations on domestic support as set out in the WTO Agreement on Agriculture, certain types of interventions provided for in this Regulation should continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, or to be notified as ‘Blue Box’ support under production-limiting programs and is so exempted from reduction commitments. While the provisions set out in this Regulation for such types of interventions are already in compliance with the ‘Green Box’ requirements as set out in Annex 2 to the WTO Agreement on Agriculture or the ‘Blue Box’ requirements set out in its Article 6.5, it should be ensured that the interventions planned by Member States in their CAP Strategic Plans for these types of interventions continue to respect those requirements.

Amendment 10

New recital after recital 20

Text proposed by the Commission CoR amendment In order to meet the Sustainable Development Goals (SDGs) adopted by the UN, in particular goals 1 and 2, and in keeping with the Union’s policy coherence for development (PCD), the CAP should promote the development of sustainable and prosperous family farming in developing countries, which helps maintain rural populations and ensures the security of their food supplies. To this end, EU agricultural and food products should not be exported at a price lower than European production costs.

Reason

In keeping with Article 54 of the CoR’s CAP outlook opinion, the CAP needs to be amended to meet this goal, which should be enshrined as a tenth objective of the CAP.

Amendment 11

Recital 22

Text proposed by the Commission CoR amendment The framework of standards of GAECs aims to contribute to the mitigation and adaptation to climate change, the tackling of water challenges, the protection and quality of soil and the protection and quality of biodiversity. The framework needs to be enhanced to take into account in particular the practices set until 2020 under the greening of direct payments, the mitigation of climate change and the need to improve farms sustainability, and in particular the nutrients management. It is acknowledged that each GAEC contributes to multiple objectives. In order to implement the framework, Member States should define a national standard for each of the standards set at Union level taking into account the specific characteristics of the area concerned, including soil and climatic conditions, existing farming conditions, land use, crop rotation, farming practices and farm structures. Member States may also define in addition other national standards related to the main objectives laid down in Annex III in order to improve the environmental and climate delivery of the GAEC framework. As part of GAEC framework, in order to support both the agronomic and the environmental performance of farms, nutrient management plans will be established with the help of a dedicated electronic Farm Sustainability Tool made available by the Member States to individual farmers. The tool should provide on-farm decision support starting from minimum nutrient management functionalities. A wide interoperability and modularity should also ensure the possibility to add other electronic on-farm and e-governance applications. In order to ensure a level playing field between farmers and across the Union, the Commission may provide support to the Member States in the design of the Tool as well as with the data storage and processing services required. The framework of standards of GAECs aims to contribute to the mitigation and adaptation to climate change, the tackling of water challenges, the protection and quality of soil and the protection and quality of biodiversity including agricultural genetic resources. The framework needs to be enhanced to take into account in particular the practices set until 2020 under the greening of direct payments, the mitigation of climate change and the need to improve farms sustainability, and in particular the nutrients management. It is acknowledged that each GAEC contributes to multiple objectives. In order to implement the framework, Member States should define a national standard for each of the standards set at Union level taking into account the specific characteristics of the area concerned, including soil and climatic conditions, existing farming conditions, land use, annual crop rotation, farming practices and farm structures. Member States may also define in addition other national standards related to the main objectives laid down in Annex III in order to improve the environmental and climate delivery of the GAEC framework. As part of GAEC framework, in order to support both the agronomic and the environmental performance of farms, nutrient management plans will be established with the help of a dedicated electronic Farm Sustainability Tool made available by the Member States to individual farmers. The tool should provide on-farm decision support starting from minimum nutrient management functionalities. A wide interoperability and modularity should also ensure the possibility to add other electronic on-farm and e-governance applications. In order to ensure a level playing field between farmers and across the Union, the Commission may provide support to the Member States in the design of the Tool as well as with the data storage and processing services required.

Reason

In order to be effective, crop rotation has to be annual, with flexibility (see Good Agricultural and Environmental Condition 8, Annex III). Action must be taken against the depletion of agricultural genetic resources.

Amendment 12

Recital 24

Text proposed by the Commission CoR amendment Member States should set farm advisory services for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses, covering economic, environmental and social dimensions, and to identify the necessary improvements as regards all measures at farm level provided for in the CAP Strategic Plans. These farm advisory services should help farmers and other beneficiaries of CAP support to become more aware of the relationship between farm management and land management on the one hand, and certain standards, requirements and information, including environmental and climate ones, on the other hand. The list of the latter includes standards applying to or necessary for farmers and other CAP beneficiaries and set in the CAP Strategic Plan, as well as those stemming from the legislation on water, on the sustainable use of pesticides , as well as the initiatives to combat antimicrobial resistance and the management of risks. In order to enhance the quality and effectiveness of the advice, Member States should integrate advisors within the Agricultural Knowledge and Innovation Systems (AKIS), in order to be able to deliver up-to-date technological and scientific information developed by research and innovation. Member States should set farm advisory services for the purpose of improving factor productivity, the sustainable management and overall performance of agricultural holdings and rural businesses, covering economic, environmental and social dimensions, and to identify the necessary improvements as regards all measures at farm level provided for in the CAP Strategic Plans. These farm advisory services should help farmers and other beneficiaries of CAP support to become more aware of the relationship between farm management and land management on the one hand, and certain standards, requirements and information, including environmental and climate ones, on the other hand. The list of the latter includes standards applying to or necessary for farmers and other CAP beneficiaries and set in the CAP Strategic Plan, as well as those stemming from the legislation on water, on the sustainable use of plant protection products , as well as the initiatives to combat antimicrobial resistance and the management of risks. In order to enhance the quality and effectiveness of the advice, Member States should integrate advisors within the Agricultural Knowledge and Innovation Systems (AKIS), in order to be able to deliver up-to-date technological and scientific information developed by research and innovation.

Amendment 13

Recital 27

Text proposed by the Commission CoR amendment When providing decoupled direct support based on the system of payment entitlements, Member States should continue to manage a national reserve or reserves per group of territories. Such reserves should be used, as a matter of priority, for young farmers and farmers commencing their agricultural activity. Rules on the use and transfers of payment entitlements are also necessary in order to guarantee a smooth functioning of the system. When providing decoupled direct support based on the system of payment entitlements, Member States should continue to manage a national reserve or reserves per group of territories. Such reserves should be used, as a matter of priority, for young farmers and farmers commencing their agricultural activity. Rules on the use and transfers of payment entitlements are also necessary in order to guarantee a smooth functioning of the system , excluding a market for payment entitlements .

Reason

It is not acceptable for there to be a trade in public subsidies.

Amendment 14

Recital 28

Text proposed by the Commission CoR amendment Small farms remain a cornerstone of Union agriculture as they play a vital role in supporting rural employment and contribute to territorial development. In order to promote a more balanced distribution of support and to reduce administrative burden for beneficiaries of small amounts, Member States should have the option of offering to small farmers the possibility of replacing the other direct payments by providing a round some payment for small farmers. Small farms remain a cornerstone of Union agriculture as they play a vital role in supporting rural employment and contribute to territorial development. In order to promote a more balanced distribution of support and to reduce administrative burden for beneficiaries of small amounts which support jobs , Member States should have the option of offering to small farmers the possibility of replacing the other direct payments by providing a round some payment for small farmers.

Reason

Small farms play a crucial role in keeping up the dynamics of a region and maintaining the land.

Amendment 15

Recital 38

Text proposed by the Commission CoR amendment Support for management commitments may include organic farming premia for the maintenance of and the conversion to organic land; payments for other types of interventions supporting environmentally friendly production systems such as agro-ecology, conservation agriculture and integrated production; forest environmental and climate services and forest conservation; premia for forests and establishment of agroforestry systems; animal welfare; conservation, sustainable use and development of genetic resources. Member States may develop other schemes under this type of interventions on the basis of their needs. This type of payments should cover additional costs and income foregone only resulting from commitments going beyond the baseline of mandatory standards and requirements established in Union and national law, as well as conditionality, as laid down in the CAP Strategic Plan. Commitments related to this type of interventions may be undertaken for a pre-established annual or pluri-annual period and might go beyond seven years where duly justified. Support for management commitments may include organic farming premia for the maintenance of and the conversion to organic land; payments for other types of interventions supporting environmentally friendly production systems such as agro-ecology, conservation agriculture and integrated production; forest environmental and climate services and forest conservation; premia for forests and establishment of agroforestry systems; animal welfare; conservation, sustainable use and development of genetic resources. Member States may develop other schemes under this type of interventions on the basis of their needs. In order to act as an incentive, this type of payments should cover more than the additional costs and income foregone resulting from commitments going beyond the baseline of mandatory standards and requirements established in Union and national law, as well as conditionality, as laid down in the CAP Strategic Plan. Commitments related to this type of interventions may be undertaken for a pre-established pluri-annual period and might go beyond seven years where duly justified.

Reason

To encourage environmentally-friendly practices, we are proposing that payment not be limited to covering forgone revenue. Multi-annual periods are more suited to having an environmental impact.

Amendment 16

Recital 40

Text proposed by the Commission CoR amendment In order to ensure a fair income and a resilient agricultural sector across the Union territory, Member States may grant support to farmers in areas facing natural and other area-specific constraints. As regards payments for ANC, the designation of the 2014-2020 Rural Development policy should continue to apply. For the CAP to deliver enhanced Union added on the environment and reinforce its synergies with the financing of investments in nature and biodiversity, it is necessary to keep a separate measure aiming at compensating beneficiaries for disadvantages related to the implementation of Natura 2000 and Water Framework Directives. Support should therefore continue to be granted to farmers and forest holders to help address specific disadvantages resulting from the implementation of Directive 2009/147/EC and Directive 92/43/EEC and in order to contribute to the effective management of Natura 2000 sites. Support should also be made available to farmers to help address disadvantages in river basin areas resulting from the implementation of the Water Framework Directive. Support should be linked to specific requirements described in the CAP Strategic Plans that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding with eco schemes. Furthermore, the specific needs of Natura 2000 areas should be taken into account by Member States in the overall design of their CAP Strategic Plans. In order to ensure a fair income and a resilient agricultural sector across the Union territory, Member States shall grant support to farmers in areas facing natural and other area-specific constraints. As regards payments for ANC, the designation of the 2014-2020 Rural Development policy should continue to apply. For the CAP to deliver enhanced Union added on the environment and reinforce its synergies with the financing of investments in nature and biodiversity, it is necessary to keep a separate measure aiming at remunerating beneficiaries for the implementation of Natura 2000 and Water Framework Directives. Support should therefore continue to be granted to farmers and forest holders to help address specific disadvantages resulting from the implementation of Directive 2009/147/EC and Directive 92/43/EEC and in order to contribute to the effective management of Natura 2000 sites. Support should also be made available to farmers to help address disadvantages in river basin areas resulting from the implementation of the Water Framework Directive. Support should be linked to specific requirements described in the CAP Strategic Plans that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding with eco schemes. Furthermore, the specific needs of Natura 2000 areas should be taken into account by Member States in the overall design of their CAP Strategic Plans.

Reason

Maintaining farming in all areas, including difficult ones, across Europe is necessary. To encourage environmentally-friendly practices, we are proposing that payment not be limited to covering forgone revenue.

Amendment 17

Recital 41

Text proposed by the Commission CoR amendment The objectives of the CAP should also be pursued through support for investments, productive as well as non-productive, on farm as well as off-farm. Such investments may concern, inter alia, infrastructures related to the development, modernisation or adaptation to climate change of agriculture and forestry, including access to farm and forest land, land consolidation and improvement, agro-forestry practices and the supply and saving of energy and water. In order to better ensure the consistency of the CAP Strategic Plans with Union objectives, as well as a level playing field between Member States, a negative list of investment topics is included in this Regulation. The objectives of the CAP should also be pursued through support for investments, productive as well as non-productive, on farm as well as off-farm. Such investments may concern, inter alia, infrastructures related to the development, modernisation or adaptation to climate change of agriculture and forestry, including access to farm and forest land, land improvement, agro-forestry practices, the supply and saving of energy and water and conservation of agricultural genetic resources . In order to better ensure the consistency of the CAP Strategic Plans with Union objectives, as well as a level playing field between Member States, a negative list of investment topics is included in this Regulation. Such investment shall be capped per farm. The envelope earmarked for this mechanism shall be limited to 10 % of the EAFRD funds allocated to the Member State concerned.

Reason

Capping investment aid allows more projects to be supported. Limiting the envelope enables more funds to be earmarked for other EAFRD priorities.

Amendment 18

Recital 44

Text proposed by the Commission CoR amendment In the light of the need to ensure appropriate risk management tools, insurance premia and mutual funds should be maintained , financed by the EAFRD . The category of mutual funds encompasses both those linked to production losses, and the general and sector-specific income stabilisation tools, linked to income losses. In the light of the need to ensure appropriate risk management tools, insurance premia and mutual funds should be maintained. The category of mutual funds encompasses both those linked to production losses, and the general and sector-specific income stabilisation tools, linked to income losses.

Reason

Financing through the EAFRD would require a corresponding increase in EAFRD resources.

Amendment 19

Recital 56

Text proposed by the Commission CoR amendment In the process of development of their CAP Strategic Plans, Member States should analyse their specific situation and needs, set targets linked to the achievement of the objectives of the CAP and design the interventions which will allow reaching these targets, while being adapted to the national and specific regional contexts, including the outermost regions pursuant to Article 349 TFEU. Such process should promote more subsidiarity within a common Union framework, while compliance with the general principles of Union law and the objectives of the CAP should be ensured. It is therefore appropriate to set rules on the structure and content of the CAP Strategic Plans. In the process of development of their CAP Strategic Plans, Member States , providing for their rural development plans to be drawn up at the most appropriate geographical level, should analyse their specific situation and needs, set targets linked to the achievement of the objectives of the CAP and design the interventions which will allow reaching these targets, while being adapted to the national and specific regional contexts, including the outermost regions pursuant to Article 349 TFEU and the most disadvantaged regions referred to in the third subparagraph of Article 174 TFEU . Such process should promote more subsidiarity within a common Union framework, while compliance with the general principles of Union law and the objectives of the CAP should be ensured. It is therefore appropriate to set rules on the structure and content of the CAP Strategic Plans.

Reason

Although it may be that some aspects of strategic plans are established at regional level, we do not know the extent of this potential regionalisation. The Regulation should provide for rural development programmes to be drawn up at the appropriate level, at least in the outermost regions. When developing CAP Strategic Plans and designing interventions adapted to specific national and regional contexts, the Member States must consider in particular the most disadvantaged regions referred to in Article 174 TFEU, such as island, cross-border and mountain regions.

Amendment 20

Article 4(1)(a) and (b)

Text proposed by the Commission CoR amendment Definitions to be formulated in the CAP Strategic Plans Definitions to be formulated in the CAP Strategic Plans 1. Member States shall provide in their CAP Strategic Plan the definitions of agricultural activity, agricultural area, eligible hectare, genuine farmer and young farmer: 1. Member States shall provide in their CAP Strategic Plan the definitions of agricultural activity, agricultural area, eligible hectare, genuine farmer and young farmer: (a) ‘agricultural activity’ shall be defined in a way that it includes both the production of agricultural products listed in Annex I to the TFEU, including cotton and short rotation coppice , and maintenance of the agricultural area in a state which makes it suitable for grazing or cultivation, without preparatory action going beyond usual agricultural methods and machineries; (a) ‘agricultural activity’ shall be defined in a way that it includes both the production of agricultural products listed in Annex I to the TFEU, including cotton and agroforestry , and maintenance of the agricultural area in a state which makes it suitable for grazing or cultivation, without preparatory action going beyond usual agricultural methods and machineries; (b) ‘agricultural area’ shall be defined in a way that it is composed of arable land, permanent crops and permanent grassland. The terms ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ shall be further specified by Member States within the following framework: (b) ‘agricultural area’ shall be defined in a way that it is composed of arable land, permanent crops and permanent grassland. The terms ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ shall be further specified by Member States within the following framework: (i) ‘arable land’ shall be land cultivated for crop production or areas available for crop production but lying fallow, and include areas set aside in accordance with Articles 22, 23 and 24 of Council Regulation (EC) No 1257/1999 (1) , with Article 39 of Council Regulation (EC) No 1698/2005 (2) , with Article 28 of Regulation (EU) No 1305/2013 or with Article 65 of this Regulation; (i) ‘arable land’ shall be land cultivated for crop production or areas available for crop production but lying fallow, and include areas set aside in accordance with Articles 22, 23 and 24 of Council Regulation (EC) No 1257/1999 (1) , with Article 39 of Council Regulation (EC) No 1698/2005 (2) , with Article 28 of Regulation (EU) No 1305/2013 or with Article 65 of this Regulation; (ii) ‘permanent crops’ shall be non-rotational crops other than permanent grassland and permanent pasture that occupy the land for five years or more, which yield repeated harvests, including nurseries and short rotation coppice; (ii) ‘permanent crops’ shall be non-rotational crops other than permanent grassland and permanent pasture that occupy the land for five years or more, which yield repeated harvests, including nurseries and short rotation coppice incorporated into the crops grown ; (iii) ‘permanent grassland and permanent pasture’ (together referred to as ‘permanent grassland’) shall be land not included in the crop rotation of the holding for five years or more, used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown). It may include other species such as shrubs and/or trees which can be grazed or produce animal feed; (iii) ‘permanent grassland and permanent pasture’ (together referred to as ‘permanent grassland’) shall be land not included in the crop rotation of the holding for five years or more, used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown). It may include other species such as shrubs and/or trees which can be grazed or produce animal feed provided that the grasses and other herbaceous forage are predominant; it may also be land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas or land which can be grazed where grasses and other herbaceous forage are not predominant or are absent in grazing areas. This status shall also apply to silvopastoral systems where herbaceous forage is not predominant but exploited by livestock, as is the case with dehesa systems and/or shrub and wooded pastures in mountain areas ;

Reason

It is proposed that the current wording of the ‘Omnibus’ regulation be retained, which took account of the particular characteristics of Mediterranean pastures, such as dehesa pastures and wooded pastures in mountain areas.

Amendment 21

Article 4(1)(d)

Text proposed by the Commission CoR amendment ‘genuine farmers’ shall be defined in a way to ensure that no support is granted to those whose agricultural activity forms only an insignificant part of their overall economic activities or whose principal business activity is not agricultural, while not precluding from support pluri-active farmers. The definition shall allow to determine which farmers are not considered genuine farmers, based on conditions such as income tests, labour inputs on the farm , company object and/or inclusion in registers. ‘genuine farmers’ shall be defined in a way to ensure that no support is granted to those whose agricultural activity forms only an insignificant part of their overall economic activities or whose principal business activity is not agricultural, while not precluding from support pluri-active farmers. The definition shall allow to determine which farmers are not considered genuine farmers, based on conditions such as share of income from agricultural production , company object and/or inclusion in registers. The definition must, in any event, preserve the family farming model of the European Union of an individual or group nature, in which the farmer works in agriculture and lives off it directly, and may take into account, if necessary, the special features of the regions defined in Article 349 TFEU.

Reason

Taking income into account could have the effect of excluding small farmers. Taking account of the share of agricultural income makes it easier to determine who are the genuine farmers. There is a need to reaffirm the European model of family farming.

Amendment 22

Article 5

Text proposed by the Commission CoR amendment Support from the EAGF and EAFRD shall aim to further improve the sustainable development of farming, food and rural areas and shall contribute to achieving the following general objectives: Support from the EAGF and EAFRD shall aim to further improve the sustainable development of farming, food and rural areas and shall contribute to achieving the following general objectives: (a) to foster a smart, resilient and diversified agricultural sector ensuring food security; (a) to foster a smart, resilient and diversified agricultural sector ensuring food security; (b) to bolster environmental care and climate action and to contribute to the environmental- and climate-related objectives of the Union; (b) to bolster environmental care and climate action and to contribute to the environmental- and climate-related objectives of the Union; (c) to strengthen the socioeconomic fabric of rural areas. (c) to strengthen the socioeconomic fabric of rural areas with particular emphasis on pursuing a fair standard of living for agricultural communities, in accordance with Article 39(b) TFEU, paying particular consideration to rural areas affected by serious depopulation problems . Those objectives shall be complemented by the cross-cutting objective of modernising the sector by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas, and encouraging their uptake. Those objectives shall be complemented by the cross-cutting objective of modernising the sector by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas, and encouraging their uptake. It is also a question of fostering relations between the various actors in the food value chain, while at the same time strengthening contractual relations and transparency in contractual relations, incorporating tools such as standardised observatories of prices and production costs.

Reason

The CAP must comply with Article 39 TFEU, pay particular attention to rural areas affected by depopulation and improve the way in which food chains operate.

Amendment 23

Article 6(1)

Text proposed by the Commission CoR amendment Specific objectives Specific objectives 1. The achievement of the general objectives shall be pursued through the following specific objectives: 1. The achievement of the general objectives shall be pursued through the following specific objectives: (a) support viable farm income and resilience across the Union to enhance food security; (a) support viable farm income , comparable with those obtained across the whole of the economy, and resilience across the Union to enhance food security; (b) enhance market orientation and increase competitiveness, including greater focus on research, technology and digitalisation; (b) enhance market orientation and increase economic, social, environmental and territorial competitiveness, including greater focus on research, technology and digitalisation as well as agro-ecology and disseminating sustainable forms of production ; (c) improve farmers’ position in the value chain; (c) improve the productivity of production factors, including with a view to reducing the costs of the goods and services produced by the agricultural sector; (d) contribute to climate change mitigation and adaptation, as well as sustainable energy; (d) improve farmers’ position in the value chain; (e) foster sustainable development and efficient management of natural resources such as water, soil and air; (e) contribute to climate change mitigation and adaptation, as well as sustainable energy; (f) contribute to the protection of biodiversity, enhance ecosystem services and preserve habitats and landscapes; (f) foster sustainable and efficient management of natural resources , including agricultural genetic resources, such as water, soil and air; (g) attract young farmers and facilitate business development in rural areas; (g) contribute to the protection of biodiversity, enhance ecosystem services and preserve habitats and landscapes; (h) promote employment, growth, social inclusion and local development in rural areas, including bio-economy and sustainable forestry; (h) attract young and new farmers , especially in the most depopulated regions, and facilitate business development in rural areas; (i) improve the response of EU agriculture to societal demands on food and health, including safe, nutritious and sustainable food, food waste, as well as animal welfare. (i) promote employment, growth, social inclusion , the participation of women in the rural economy and local development in rural areas, including bio-economy and sustainable forestry; (j) improve the response of EU agriculture to societal demands on food and health, including safe, nutritious and sustainable food, food waste, as well as animal welfare; (k) encourage the development of sustainable family farming in developing countries in line with Goals 1 and 2 of the United Nations’ Sustainable Development Goals (SDGs) and the EU’s Policy Coherence for Development (PCD).

Amendment 24

Article 8

Text proposed by the Commission CoR amendment Member States shall pursue the objectives set out in Title II by specifying interventions based on the types of interventions set out in Chapters II, III and IV of this Title in accordance with the common requirements set out in this Chapter. Member States , and the regions when they are Managing Authorities, shall pursue the objectives set out in Title II by specifying interventions based on the types of interventions set out in Chapters II, III and IV of this Title in accordance with the common requirements set out in this Chapter.

Reason

It is necessary to maintain and strengthen the role played by Europe’s regions in the management and implementation of the CAP so that policy choices can be adapted to specific territorial and sectoral characteristics.

Amendment 25

Article 9

Text proposed by the Commission CoR amendment Member States shall design the interventions of their CAP Strategic Plans in accordance with the Charter of Fundamental Rights of the European Union and the general principles of Union law. Taking into account that the common agricultural policy is the basis for the agri-food sector economy and the economic and social fabric of the rural environment of the EU, Member States, and the regions when they are Managing Authorities, shall design the interventions of their CAP Strategic Plans in accordance with the Charter of Fundamental Rights of the European Union and the general principles of Union law , including the subsidiarity principle . Member States shall ensure that interventions are set out on the basis of objective and non-discriminatory criteria, are compatible with the internal market and do not distort competition. Member States shall establish the legal framework governing the granting of Union support to beneficiaries on the basis of the CAP Strategic Plan and in accordance with the principles and requirements set out in this Regulation and Regulation (EU) [HzR]. Member States shall ensure that interventions are set out on the basis of objective and non-discriminatory criteria, are compatible with the internal market and do not distort competition. Member States shall establish the legal framework governing the granting of Union support to beneficiaries on the basis of the CAP Strategic Plan and in accordance with the principles and requirements set out in this Regulation and Regulation (EU) [HzR].

Reason

Reference should be made to the basis for the common agricultural policy and the need for Member States to implement it while respecting compatibility with the internal market and without distorting competition.

Amendment 26

Article 11

Text proposed by the Commission CoR amendment Member States shall include in their CAP Strategic Plans a system of conditionality, under which an administrative penalty shall be imposed on beneficiaries receiving direct payments under Chapter II of this Title or the annual premia under Articles 65, 66 and 67 who do not comply with the statutory management requirements under Union law and the standards for good agricultural and environmental condition of land established in the CAP Strategic Plan, as listed in Annex III, relating to the following specific areas: Member States shall include in their CAP Strategic Plans a system of conditionality, under which an administrative penalty shall be imposed on beneficiaries receiving direct payments under Chapter II of this Title or the annual premia under Articles 65, 66 and 67 who do not comply with the statutory management requirements under Union law and the standards for good agricultural and environmental condition of land established in the CAP Strategic Plan, as listed in Annex III, relating to the following specific areas: 1. the climate and the environment; 2. public health, animal health and plant health; 3. animal welfare. 1. the climate and the environment; 2. public health, animal health and plant health; 3. animal welfare; 4. social: respect for the rights of agricultural employees .

Reason

It is important that farms receiving public funding from the CAP respect the social rights of their employees.

Amendment 27

Article 12(3)

Text proposed by the Commission CoR amendment Member States shall establish a system for providing the Farm Sustainability Tool for Nutrients referred to in Annex III, with the minimum content and functionalities defined therein, to beneficiaries, who shall use the Tool. The Commission may support the Member States with the design of that Tool and with data storage and processing services requirements. Member States shall establish a system for providing the Farm Sustainability Tool for Nutrients referred to in Annex III, with the minimum content and functionalities defined therein, to beneficiaries, who shall use the Tool. The Commission may support the Member States with the design of that Tool. Data storage, processing and protection services requirements must ensure that farmers have control over nutrients .

Reason

Soil fertility depends less on the digitalised recording of nutrients than on compliance with good agronomic practices that ensure the good biological condition of the soil. Farmers must remain in control of nutrients on their farms, while complying with legislation.

Amendment 28

Article 12(4)

Text proposed by the Commission CoR amendment The Commission is empowered to adopt delegated acts in accordance with Article 138 supplementing this Regulation with rules for good agricultural and environmental condition, including establishing the elements of the system of the ratio of permanent grassland, the year of reference and the rate of conversion under GAEC 1 as referred to in Annex III, the format and additional minimum elements and functionalities of the Farm Sustainability Tool for Nutrients.

Reason

Good agricultural and environmental conditions must be covered by the regulations and not delegated acts.

Amendment 29

Article 13(4)(d)

Text proposed by the Commission CoR amendment risk management as referred to in Article 70; risk prevention and management as referred to in Article 70;

Reason

Risk prevention through agro-ecological practices and the de-specialisation of farms and areas will make farms more resilient to climate and health contingencies. Costly risk management will not be enough to make farms safe.

Amendment 30

Article 15(4)

Text proposed by the Commission CoR amendment The Commission is empowered to adopt delegated acts in accordance with Article 138 supplementing this Regulation with rules establishing a harmonised basis for calculation for the reduction of payments laid down in paragraph 1 to ensure a correct distribution of the funds to the entitled beneficiaries.

Reason

Distribution of direct payments must be covered by the regulations and not delegated acts.

Amendment 31

Article 24(1)

Text proposed by the Commission CoR amendment Except in the case of transfer by actual or anticipated inheritance, payment entitlements shall be transferred only to a genuine farmer. Except in the case of transfer by actual or anticipated inheritance, payment entitlements shall be transferred only to a genuine farmer and shall remain tied to the land .

Reason

There is no justification for enabling entitlements to public support to be traded independently of the purchase or rental of farming land.

Amendment 32

Article 25

Text proposed by the Commission CoR amendment Member States may grant payments to small farmers as defined by Member States by way of a round sum, replacing direct payments under this Section and Section 3 of this Chapter. Member States shall design the corresponding intervention in the CAP Strategic Plan as optional for the farmers. Member States shall grant payments to small farmers as defined by Member States by way of a round sum, replacing direct payments under this Section and Section 3 of this Chapter. The amount of this round sum payment shall be set at a level sufficient to ensure the long-term viability of these farms. Member States shall establish criteria for identifying small farmers and design the corresponding intervention in the CAP Strategic Plan as optional for the farmers.

Reason

‘Small farms’ play a real role in keeping up employment and the dynamics of a region and maintaining the land. This provision must be obligatory for the Member States.

Amendment 33

Article 28(6)

Text proposed by the Commission CoR amendment Support for eco-schemes shall take the form of an annual payment per eligible hectare and it shall be granted as either:payments additional to the basic income support as set out in Subsection 2 of this Section; or Support for eco-schemes shall take the form of an annual payment per eligible hectare and it shall be granted as either: (a) payments additional to the basic income support as set out in Subsection 2 of this Section; or (a) payments compensating beneficiaries for all or part of the additional costs incurred and income foregone as a result of the commitments as set pursuant to Article 65. (b) payments remunerating beneficiaries beyond the additional costs incurred and income foregone as a result of the commitments as set pursuant to Article 65.

Reason

To encourage farmers to continue or further develop environmentally-friendly practices, support must go beyond the cost of additional production linked to good practices.

Amendment 34

Article 29

Text proposed by the Commission CoR amendment 1. Member States may grant coupled income support to genuine farmers under the conditions set out in this Subsection and as further specified in their CAP Strategic Plans. 1. Member States may grant coupled income support to genuine farmers under the conditions set out in this Subsection and as further specified in their CAP Strategic Plans. 2. The Member States’ interventions shall help the supported sectors and productions or specific types of farming therein listed in Article 30 addressing the difficulty or difficulties they undergo by improving their competitiveness, their sustainability or their quality. 2. The Member States’ interventions shall help the supported sectors and productions or specific types of farming therein listed in Article 30, with the following aims: — preventing the cessation of farming in rural areas and boosting the EU’s self-sufficiency in food, or — addressing the difficulty or difficulties they undergo by improving their competitiveness, their sustainability or their quality. 3. Coupled income support shall take the form of an annual payment per hectare or animal. 3. Coupled income support shall take the form of an annual capped payment per hectare or animal.

Reason

Coupled support should cover areas in difficulty as well as producers in difficulty, and aim to maintain production rather than develop it, which justifies the cap per farm.

Amendment 35

Article 30

Text proposed by the Commission CoR amendment Coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic, social or environmental reasons: cereals, oilseeds, protein crops, grain legumes, flax, hemp, rice, nuts, starch potato , milk and milk products, seeds, sheepmeat and goatmeat, beef and veal, olive oil, silkworms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables, short rotation coppice and other non-food crops, excluding trees, used for the production of products that have the potential to substitute fossil materials . Coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic, social or environmental reasons: cereals, oilseeds with the exception of agricultural biofuel crops , protein crops, grain legumes, forage legumes either alone or as a grass-legume mixture, grasslands , flax, hemp, rice, nuts, milk and milk products, seeds, sheepmeat and goatmeat, beef and veal, pork, poultry, olive oil, silkworms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables, and short rotation coppice that is part of crop plots .

Reason

Coupled income must promote all legumes. It should not exclude pork and poultry, unlike agricultural biofuel crops.

Amendment 36

Article 40

Text proposed by the Commission CoR amendment Mandatory and optional sectoral types of interventions Mandatory and optional sectoral types of interventions 1. The sectoral type of interventions in the fruit and vegetables sector referred to in point (a) of Article 39 and in the apiculture sector referred to in point (b) of Article 39 shall be mandatory for every Member State. 1. The sectoral type of interventions in the fruit and vegetables sector referred to in point (a) of Article 39 and in the apiculture sector referred to in point (b) of Article 39 shall be mandatory for every Member State. 2. The sectoral type of intervention in the wine sector referred to in point (c) of Article 39 shall be mandatory for the Member States listed in Annex V. 2. The sectoral type of intervention in the wine sector referred to in point (c) of Article 39 shall be mandatory for the Member States listed in Annex V. 3. Member States may choose in their CAP Strategic Plan to implement the sectoral types of interventions referred to in points (d), (e) and (f) of Article 39. 3. Member States may choose in their CAP Strategic Plan to implement the sectoral types of interventions referred to in points (d), (e) and (f) of Article 39. 4. The Member State referred to in Article 82(3) may implement in the hops sector the sectoral type of intervention referred to in point (f) of Article 39 only if that Member State decides in its CAP Strategic Plan not to implement the sectoral type of intervention referred to in point (d) of Article 39. 4. The Member State referred to in Article 82(3) may implement in the hops sector the sectoral type of intervention referred to in point (f) of Article 39 only if that Member State decides in its CAP Strategic Plan not to implement the sectoral type of intervention referred to in point (d) of Article 39. 5. The Member States referred to in Article 82(4) may implement in the olive oil and table olives sector the sectoral type of intervention referred to in point (f) of Article 39 only if those Member States decide in their CAP Strategic Plans not to implement the sectoral type of intervention referred to in point (e) of Article 39. 5. The Member States referred to in Article 82(4) may implement in the olive oil and table olives sector the sectoral type of intervention referred to in point (f) of Article 39 only if those Member States decide in their CAP Strategic Plans not to implement the sectoral type of intervention referred to in point (e) of Article 39. 6. Member States may include interventions on crisis prevention and risk management in any sector in their strategic plans, for the purposes of preventing and dealing with crises in the sector. These objectives are linked to the specific objectives set out in Article 6(1)(a)(b) and (c). These measures shall facilitate the participation of producer, interbranch and cooperative organisations in the system. 7. On the basis of a common guideline applicable to the whole of the European Union, Member States shall include in their strategic plans tools, such as standardised observatories of prices and production costs, which allow information on the development of the markets to be obtained.

Reason

The possibility of interventions to prevent and manage risk needs to be extended to all sectors. Introducing instruments such as standardised observatories of prices and production costs will make it possible to obtain warning signals about developments in agricultural markets, should the need arise.

Amendment 37

Article 43(1)

Text proposed by the Commission CoR amendment As regards the objectives referred to in points (a) to (h) of Article 42, Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention: As regards the objectives referred to in points (a) to (h) of Article 42, Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention: (a) investments in tangible and non-tangible assets, in particular focused on water saving, energy saving, ecological packaging and waste reduction; (a) investments in tangible and non-tangible assets, in particular focused on water saving, energy saving, ecological packaging and waste reduction; (b) research and experimental production, in particular focused on water saving, energy saving, ecological packaging, waste reduction, pest resilience, reduction of risks and impacts of pesticides use, preventing damage caused by adverse climatic events and boosting the use of fruit and vegetable varieties adapted to changing climate conditions; (b) research and experimental production, in particular focused on water saving, energy saving, ecological packaging, waste reduction, pest resilience, reduction of risks and impacts of pesticides use, preventing damage caused by adverse climatic events and boosting the use of fruit and vegetable varieties adapted to changing climate conditions; (c) organic production; (c) organic production; (d) integrated production; (d) integrated production; (e) actions to conserve soil and enhance soil carbon; (e) actions to conserve soil and enhance soil carbon; (f) actions to create and maintain habitats favourable for biodiversity or to maintain the landscape, including the conservation of its historical features; (f) actions to create and maintain habitats favourable for biodiversity or to maintain the landscape, including the conservation of its historical features; (g) actions to save energy, increase energy efficiency and to increase renewable energy use; (g) actions to save energy, increase energy efficiency and to increase renewable energy use; (h) actions to improve pest resilience; (h) actions to improve pest resilience; (i) actions to improve use and management of water, including water saving and drainage; (i) actions to improve use and management of water, including water saving and drainage; (j) actions and measures to reduce waste production and to improve waste management; (j) actions and measures to reduce waste production and to improve waste management; (k) actions to increase sustainability and efficiency of transport and of storage of products of the fruit and vegetables sector; (k) actions to increase sustainability and efficiency of transport and of storage of products of the fruit and vegetables sector; (l) actions to mitigate climate change, to adapt to climate change and to increase renewable energy use; (l) actions to mitigate climate change, to adapt to climate change and to increase renewable energy use; (m) implementation of Union and national quality schemes; (m) implementation of Union and national quality schemes; (n) promotion and communication, including actions and activities aimed at diversification and consolidation of the fruit and vegetables markets and at informing about the health advantages of consumption of fruit and vegetables; (n) promotion and communication, including actions and activities aimed at diversification and consolidation of the fruit and vegetables markets and at informing about the health advantages of consumption of fruit and vegetables; (o) advisory services and technical assistance, in particular concerning sustainable pest control techniques, sustainable use of pesticides and climate change adaptation and mitigation; (o) advisory services and technical assistance, in particular concerning sustainable pest control techniques, reduction in the use of pesticides and climate change adaptation and mitigation; (p) training and exchange of best practices in particular concerning sustainable pest control techniques, sustainable use of pesticides and contributing to climate change adaptation and mitigation (p) training and exchange of best practices in particular concerning sustainable pest control techniques, reduction in the use of pesticides and contributing to climate change adaptation and mitigation; (q) measures to preserve the diversity of genetic resources of fruit and vegetables.

Reason

For the safety of farmers and of the public, it is time to significantly reduce the use of pesticides. The diversity of genetic resources is a sign of resilience.

Amendment 38

Article 49

Text proposed by the Commission CoR amendment Types of intervention in the apiculture sector and the Union financial assistance […] Types of intervention in the apiculture sector and the Union financial assistance […] 2. Member States shall substantiate in their CAP Strategic Plans their choice of specific objectives and types of intervention. Within the chosen types of intervention they shall define interventions. […] 2. Member States shall substantiate in their CAP Strategic Plans their choice of specific objectives and types of intervention. Within the chosen types of intervention they shall define interventions. […] 4. The Union financial assistance to the interventions referred to in paragraph 2 shall be maximum 50 % of the expenditure. The remaining part of the expenditure shall be borne by the Member States. […] 4. The Union financial assistance to the interventions referred to in paragraph 2 shall be maximum 50 % of the expenditure , with the exception of the outermost regions, where this maximum shall be 85 % . The remaining part of the expenditure shall be borne by the Member States. […]

Reason

Reducing the rates of EU co-financing compared with previous programming periods would jeopardise the implementation of rural development programmes in the outermost regions and would double their own financing efforts for EU projects.

Amendment 39

Article 52(1)

Text proposed by the Commission CoR amendment Types of intervention in the wine sector Types of intervention in the wine sector For each objective chosen from among those laid down in Article 51 the Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention: For each objective chosen from among those laid down in Article 51 the Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention: (a) restructuring and conversion of vineyards, including replanting of vineyards where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority, but excluding the normal renewal of vineyards consisting of replanting of the same parcel of land with the same grape variety according to the same system of vine cultivation, when vines have to come to the end of their natural life; (a) restructuring and conversion of vineyards, including replanting of vineyards where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority, but excluding the normal renewal of vineyards consisting of replanting of the same parcel of land with the same grape variety according to the same system of vine cultivation, when vines have to come to the end of their natural life; (b) reducing the use of pesticides.

Reason

Wine-growing is one of the sectors using the most pesticides and this must be urgently reduced.

Amendment 40

Article 64

Text proposed by the Commission CoR amendment Types of interventions for rural development Types of interventions for rural development The types of interventions under this Chapter shall be the following: The types of interventions under this Chapter shall be the following: (a) environmental, climate and other management commitments; (a) environmental, climate and other management commitments; (b) natural or other area-specific constraints; (b) natural or other area-specific constraints; (c) area-specific disadvantages resulting from certain mandatory requirements; (c) area-specific disadvantages resulting from certain mandatory requirements; (d) investments; (d) investments to improve quality of life and public services in rural areas ; (e) installation of young farmers and rural business start-up; (e) installation of young farmers and rural business start-up; (f) risk management tools; (f) risk management tools; (g) cooperation; (g) cooperation; (h) knowledge exchange and information. (h) knowledge exchange and information.

Amendment 41

Article 65(6)

Text proposed by the Commission CoR amendment Member States shall compensate beneficiaries for costs incurred and income foregone resulting from the commitments made. Where necessary, they may also cover transaction costs. In duly justified cases, Member States may grant support as a flat-rate or as a one-off payment per unit. Payments shall be granted annually. Member States shall compensate beneficiaries beyond costs incurred and income foregone resulting from the commitments made. Where necessary, they may also cover transaction costs. In duly justified cases, Member States may grant support as a flat-rate or as a one-off payment per unit. Payments shall be granted annually.

Reason

To encourage a mass transition of production systems towards more resilient production methods, a payment is needed that acts as an incentive and the payment for good practices should not be limited to the covering of forgone revenue.

Amendment 42

Article 68(2)

Text proposed by the Commission CoR amendment Member States may only grant support under this type of interventions for tangible and/or intangible investments, which contribute to achieving the specific objectives set out in Article 6. Support to the forestry sector shall be based on a forest management plan or equivalent instrument. Member States may only grant support under this type of interventions for tangible and/or intangible investments, which contribute to achieving the specific objectives set out in Article 6. Support to the forestry sector shall be based on a forest management plan or equivalent instrument. The grant of support shall be conditional on the predicted (ex ante) environmental effects derived from an environmental impact assessment.

Reason

Public funds cannot be used for investments that would have a negative environmental impact. To prevent beneficiaries having to pay funds back because the environmental impact turns out be worse than initially calculated (ex post), the conditionality should be ex ante.

Amendment 43

Article 68(3)

Text proposed by the Commission CoR amendment Member States shall establish a list of ineligible investments and categories of expenditure, including at least the following: Member States shall establish a list of ineligible investments and categories of expenditure, including at least the following: (a) purchase of agricultural production rights; (a) purchase of agricultural production rights; (b) purchase of payment entitlements; (b) purchase of payment entitlements; (c) purchase of land with the exception of land purchase for environmental conservation or land purchased by young farmers through the use of financial instruments; (c) purchase of land with the exception of land purchase for environmental conservation or land purchased by young farmers through the use of financial instruments; (d) purchase of animals, annual plants and their planting other than for the purpose of restoring agricultural or forestry potential following natural disaster and catastrophic events; (d) purchase of animals, annual plants and their planting other than for the purpose of restoring agricultural or forestry potential following natural disaster and catastrophic events; (e) interest rate on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy; (e) interest rate on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy; (f) investments in irrigation which are not consistent with the achievement of good status of water bodies, as laid down in Article 4(1) of Directive 2000/60/EC, including expansion of irrigation affecting water bodies whose status has been defined as less than good in the relevant river basin management plan; (f) investments in irrigation which are not consistent with the achievement of good status of water bodies, as laid down in Article 4(1) of Directive 2000/60/EC, including expansion of irrigation affecting water bodies whose status has been defined as less than good in the relevant river basin management plan; (g) investments in large infrastructures not being part of local development strategies; (g) investments in large infrastructures not being part of regional and local development strategies; (h) investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation. (h) investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation.

Reason

It is important that large infrastructure investments which are part of regional development strategies should also be eligible.

Amendment 44

Article 71

Text proposed by the Commission CoR amendment LEADER 1. Member States shall grant support for the LEADER initiative, referred to as community-led local development in Article 25 of Regulation (EU) [CPR]. Member States, through the EAFRD, may grant support for measures contributing to one or more of the objectives laid down in Article 6, including outside the scope of the options set down in Chapter IV, Section 1. The decision to approve a local development strategy also implies approval of the measures comprising that strategy.

Reason

LEADER, with its budget which is 5 % of the EAFRD budget, could be implemented more efficiently with more flexible and autonomous rules which are not laid down by the national strategic plan (regional operational plans).

Amendment 45

Article 71(1) and (5)

Text proposed by the Commission CoR amendment 1. Member States may grant support for cooperation under the conditions set out in this Article and as further specified in their CAP Strategic Plans to prepare and to implement Operational Group projects of the European Innovation Partnership for agricultural productivity and sustainability as referred to in Article 114 and LEADER, referred to as community-led local development in Article 25 of Regulation (EU) [CPR] , and to promote quality schemes, producer organisations or producer groups or other forms of cooperation. […] 1. Member States may grant support for cooperation under the conditions set out in this Article and as further specified in their CAP Strategic Plans to prepare and to implement Operational Group projects of the European Innovation Partnership for agricultural productivity and sustainability as referred to in Article 114 and local development in the framework of LEADER , and to promote quality schemes, producer organisations or producer groups or other forms of cooperation. […] 5. Where support is paid as an overall amount, Member States shall ensure that Union rules and requirements pertaining to similar actions covered under other types of interventions are respected. This paragraph does not apply to LEADER, referred to as community-led local development in Article 25 of Regulation (EU) [CPR]. 5. Where support is paid as an overall amount, Member States shall ensure that Union rules and requirements pertaining to similar actions covered under other types of interventions are respected.

Reason

LEADER, with its budget which is 5 % of the EAFRD budget, could be implemented more efficiently with more flexible and autonomous rules which are not laid down by the national strategic plan (regional operational plans).

Amendment 46

Article 74(5)

Text proposed by the Commission CoR amendment Eligible expenditure of a financial instrument shall be the total amount of CAP Strategic Plan contributions paid, or, in the case of guarantees, set aside as agreed in guarantee contracts, by the financial instrument within the eligibility period, where that amount corresponds to: Eligible expenditure of a financial instrument shall be the total amount of CAP Strategic Plan contributions paid, or, in the case of guarantees, set aside as agreed in guarantee contracts, by the financial instrument within the eligibility period, where that amount corresponds to: (a) payments to, or for the benefit of, final recipients, in the case of loans, equity and quasi-equity investments; (a) payments to, or for the benefit of, final recipients, in the case of loans, equity and quasi-equity investments . Moreover, payments to final recipients may only be taken into account as working capital in the case of farmers who are affected by extreme adverse weather and/or market price crises; (b) resources set aside as agreed in guarantee contracts, whether outstanding or already come to maturity, in order to honour possible guarantee calls for losses, calculated based on a multiplier ratio covering a multiple amount of underlying disbursed new loans or equity investments in final recipients; (b) resources set aside as agreed in guarantee contracts, whether outstanding or already come to maturity, in order to honour possible guarantee calls for losses, calculated based on a multiplier ratio covering a multiple amount of underlying disbursed new loans or equity investments in final recipients; (c) payments to, or for the benefit of, final recipients where financial instruments are combined with any other Union contribution in a single financial instrument operation in accordance with Article 52(5) of Regulation (EU) [CPR]; (c) payments to, or for the benefit of, final recipients where financial instruments are combined with any other Union contribution in a single financial instrument operation in accordance with Article 52(5) of Regulation (EU) [CPR]; (d) payments of management fees and reimbursements of management costs incurred by the bodies implementing the financial instrument. (d) payments of management fees and reimbursements of management costs incurred by the bodies implementing the financial instrument. For the purposes of point (b) of this paragraph, the multiplier ratio shall be established in a prudent ex ante risk assessment and agreed in the relevant funding agreement. The multiplier ratio may be reviewed, if justified by subsequent changes in market conditions. Such a review shall not have retroactive effect. For the purposes of point (b) of this paragraph, the multiplier ratio shall be established in a prudent ex ante risk assessment and agreed in the relevant funding agreement. The multiplier ratio may be reviewed, if justified by subsequent changes in market conditions. Such a review shall not have retroactive effect. For the purposes of point (d) of this paragraph, management fees shall be performance based. Where bodies implementing a holding fund and/or specific funds, in accordance with Article 53(3) of Regulation (EU) [CPR], are selected through a direct award of contract, the amount of management cost and fees paid to these bodies that can be declared as eligible expenditure shall be subject to a threshold of [up to 5 %] of the total amount of CAP Strategic Plan contributions disbursed to final recipients in loans, equity or quasi-equity investments or set aside as agreed in guarantee contracts. For the purposes of point (d) of this paragraph, management fees shall be performance based. Where bodies implementing a holding fund and/or specific funds, in accordance with Article 53(3) of Regulation (EU) [CPR], are selected through a direct award of contract, the amount of management cost and fees paid to these bodies that can be declared as eligible expenditure shall be subject to a threshold of [up to 5 %] of the total amount of CAP Strategic Plan contributions disbursed to final recipients in loans, equity or quasi-equity investments or set aside as agreed in guarantee contracts. This threshold shall not apply where the selection of bodies implementing financial instruments is made through a competitive tender in accordance with the applicable law and the competitive tender establishes the need for higher level of management costs and fees. Where arrangement fees, or any part thereof, are charged to final recipients, they shall not be declared as eligible expenditure. This threshold shall not apply where the selection of bodies implementing financial instruments is made through a competitive tender in accordance with the applicable law and the competitive tender establishes the need for higher level of management costs and fees. Where arrangement fees, or any part thereof, are charged to final recipients, they shall not be declared as eligible expenditure.

Reason

The possibility of using financial instruments to obtain working capital in the event of extreme weather events or market crises should be taken into account.

Amendment 47

Article 85(2)

Text proposed by the Commission CoR amendment The maximum EAFRD contribution rate shall be: The maximum EAFRD contribution rate shall be: (a) 70 % of the eligible public expenditure in the outermost regions and in the smaller Aegean islands within the meaning of Regulation (EU) No 229/2013; (a) 85 % of the eligible public expenditure in the outermost regions and in the smaller Aegean islands within the meaning of Regulation (EU) No 229/2013; (b) 70 % of the eligible public expenditure in the less developed regions; (b) 75 % of the eligible public expenditure in the less developed regions; (c) 65 % of the eligible expenditure for payments under Article 66; (c) 75 % of the eligible expenditure for payments under Article 66; (d) 43 % of the eligible public expenditure in the other regions. (d) 53 % of the eligible public expenditure in the other regions; (e) the above rates shall be increased by at least ten percentage points in regions with serious depopulation problems. The minimum EAFRD contribution rate shall be 20 %.

Reason

The current EAFRD co-financing rates should be maintained. A larger EAFRD contribution should also be considered in areas with higher depopulation rates than the European average.

Amendment 48

Article 86(2)

Text proposed by the Commission CoR amendment At least 30 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex IX shall be reserved for interventions addressing the specific environmental- and climate-related objectives set out in points (d), (e) and (f) of Article 6(1) of this Regulation, excluding interventions based on Article 66. At least 30 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex IX shall be reserved for interventions addressing the specific environmental- and climate-related objectives set out in points (d), (e) and (f) of Article 6(1) of this Regulation, excluding interventions based on Article 66 , and risk management tools (Article 70) and support for investments (Article 68) .

Reason

Environmental and climate objectives must be respected.

Amendment 49

Article 86(5)

Text proposed by the Commission CoR amendment The indicative financial allocations for the coupled income support interventions referred to in Subsection 1 of Section 2 of Chapter II of Title III, shall be limited to a maximum of 10 % of the amounts set out in Annex VII. The indicative financial allocations for the coupled income support interventions referred to in Subsection 1 of Section 2 of Chapter II of Title III, shall be limited to a maximum of 13 % of the amounts set out in Annex VII. By way of derogation from the first subparagraph, Member States that in accordance with Article 53(4) of Regulation (EU) No 1307/2013 used for the purpose of voluntary coupled support more than 13 % of their annual national ceiling set out in Annex II to that Regulation, may decide to use for the purpose of coupled income support more than 10 % of the amount set out in Annex VII. The resulting percentage shall not exceed the percentage approved by the Commission for voluntary coupled support in respect of claim year 2018. By way of derogation from the first subparagraph, Member States that in accordance with Article 53(4) of Regulation (EU) No 1307/2013 used for the purpose of voluntary coupled support more than 13 % of their annual national ceiling set out in Annex II to that Regulation, may decide to use for the purpose of coupled support more than 13 % of the amount set out in Annex VII. The resulting percentage shall not exceed the percentage approved by the Commission for voluntary coupled support in respect of claim year 2018. The percentage referred to in the first subparagraph, may be increased by a maximum of 2 %, provided that the amount corresponding to the percentage exceeding the 10 % is allocated to the support for protein crops under Subsection 1 of Section 2 of Chapter II of Title III. The percentage referred to in the first subparagraph, may be increased by a maximum of 2 %, provided that the amount corresponding to the percentage exceeding the 13 % is allocated to the support for protein crops , including legumes, under Subsection 1 of Section 2 of Chapter II of Title III. The amount included in the approved CAP Strategic Plan resulting from the application of the first and second subparagraphs shall be binding. The amount included in the approved CAP Strategic Plan resulting from the application of the first and second subparagraphs shall be binding.

Amendment 50

Article 86

Text proposed by the Commission CoR amendment […] 8. The indicative financial allocations for redistributive employment support interventions referred to in Subsection 26 of Section 3 of Chapter II of Title III shall be set at a minimum of 30 % of the amounts set out in Annex VII. 9. The indicative financial allocations for climate and environment programme interventions referred to in Subsection 28 of Section 3 of Chapter II of Title III shall be set at a minimum of 30 % of the amounts set out in Annex VII. 10. A maximum of 10 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex IX shall be reserved for the risk management tools defined in Article 70 of the Regulation. 11. A maximum of 10 % of EAFRD Strategic Plan funds shall be reserved for investments (Article 68). 12. The EAFRD financial allocation shall cover a specific supplement in rural areas with low populations.

Reason

Being one of the main handicaps faced by rural areas, depopulation should also be taken into account, alongside issues linked to climate change.

Amendment 51

Article 90(1)

Text proposed by the Commission CoR amendment 1. As part of their CAP Strategic Plan proposal referred to in Article 106(1), Member States may decide to transfer: 1. As part of their CAP Strategic Plan proposal referred to in Article 106(1), Member States may decide to transfer: (a) up to 15 % of the Member State’s allocation for direct payments set out in Annex IV after deduction of the allocations for cotton set in Annex VI for calendar years 2021 to 2026 to the Member State’s allocation for EAFRD in financial years 2022-2027 ; or (a) up to 15 % of the Member State’s allocation for direct payments set out in Annex IV after deduction of the allocations for cotton set in Annex VI for calendar years 2021 to 2026 to the Member State’s allocation for EAFRD in financial years 2022-2027; (b) up to 15 % of the Member State’s allocation for EAFRD in financial years 2022 - 2027 to the Member State’s allocation for direct payments set out in Annex IV for calendar years 2021 to 2026.

Reason

As stated in its previous opinions, the Committee is opposed to this possibility of transfer from the second to the first pillar, which goes against the interests of rural areas.

Amendment 52

Article 91

Text proposed by the Commission CoR amendment CAP Strategic Plans Member States shall establish CAP Strategic Plans in accordance with this Regulation to implement the Union support financed by the EAGF and the EAFRD for the achievement of the specific objectives set out to in Article 6. CAP Strategic Plans Member States shall establish CAP Strategic Plans in accordance with this Regulation to implement the Union support financed by the EAGF and the EAFRD for the achievement of the specific objectives set out to in Article 6. Based on the SWOT analysis referred to in Article 103(2) and an assessment of needs referred to in Article 96, Member State shall establish in the CAP Strategic Plans an intervention strategy as referred to in Article 97 in which quantitative targets and milestones shall be set to achieve the specific objectives set out to in Article 6. The targets shall be defined using a common set of result indicators set out in Annex I. Based on the SWOT analysis referred to in Article 103(2) and an assessment of needs referred to in Article 96, Member State shall establish in the CAP Strategic Plans an intervention strategy as referred to in Article 97 in which quantitative targets and milestones shall be set to achieve the specific objectives set out to in Article 6. The targets shall be defined using a common set of result indicators set out in Annex I. To reach these targets Member States shall set out interventions based on the types of interventions laid down in Title III. Each CAP Strategic Plan shall cover the period from 1 January 2021 to 31 December 2027. To reach these targets Member States shall draw up rural development programmes established at the most appropriate geographical level, at least in the outermost regions, based on the types of interventions laid down in Title III. Each CAP Strategic Plan shall cover the period from 1 January 2021 to 31 December 2027.

Reason

A reinforced regional approach is needed for the definition and management of rural development programmes, in line with the subsidiarity principle. Strategic Plans should be implemented through rural development plans at the most appropriate geographical level.

Amendment 53

Article 102

Text proposed by the Commission CoR amendment Modernisation Modernisation The description of the elements that ensure modernisation of the CAP referred to in point (g) of Article 95(1) shall highlight the elements of the CAP Strategic Plan that support the modernisation of the agricultural sector and the CAP and shall contain in particular: The description of the elements that ensure modernisation of the CAP referred to in point (g) of Article 95(1) , as well as the agro-ecological transition, shall highlight the elements of the CAP Strategic Plan that support the modernisation of the agricultural sector and the CAP and shall contain in particular: (a) an overview of how the CAP Strategic Plan will contribute to the cross-cutting general objective related to fostering and sharing of knowledge, innovation and digitalisation and encouraging their uptake set out in the second subparagraph of Article 5, notably through: (a) an overview of how the CAP Strategic Plan will contribute to the cross-cutting general objective related to fostering and sharing of knowledge , agricultural knowhow, technical and social innovation and digitalisation, and encouraging their uptake set out in the second subparagraph of Article 5, notably through: (i) a description of the organisational set-up of the AKIS designed as the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields; (i) a description of the organisational set-up of the AKIS designed as the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields; (ii) a description of how advisory services as referred to in Article 13, research and CAP networks will work together within the framework of the AKIS, and how advice and innovation support services are provided; (ii) a description of how advisory services as referred to in Article 13, research and CAP networks will work together within the framework of the AKIS, and how advice and innovation support services are provided; (b) a description of the strategy for the development of digital technologies in agriculture and rural areas and for the use of these technologies to improve the effectiveness and efficiency of the CAP Strategic Plan interventions. (b) a description of the strategy for the development of digital technologies in agriculture and rural areas and for the use of these technologies to improve the effectiveness and efficiency of the CAP Strategic Plan interventions.

Reason

Farm modernisation must be carried out as part of the agro-ecological transition, by means of technical and social innovation.

Amendment 54

Article 93

Text proposed by the Commission CoR amendment Each Member State shall establish a single CAP Strategic Plan for its entire territory. Where elements of the CAP Strategic Plan are established at regional level, the Member State shall ensure the coherence and the consistency with the elements of the CAP Strategic Plan established at national level. Each Member State shall establish a single CAP Strategic Plan for its entire territory. Where elements of the CAP Strategic Plan are established at regional level or implemented through regional rural development programmes , the Member State shall ensure the coherence and the consistency with the elements of the CAP Strategic Plan established at national level.

Reason

See amendment 24.

Amendment 55

Article 95(1)

Text proposed by the Commission CoR amendment Each CAP Strategic Plan shall contain the following sections: Each CAP Strategic Plan shall contain the following sections: (a) an assessment of needs; (a) an assessment of needs; (b) an intervention strategy; (b) an intervention strategy; (c) a description of elements common to several interventions; (c) a description of elements common to several interventions; (d) a description of the direct payments, sectoral and rural development interventions specified in the strategy; (d) a description of the direct payments, sectoral and rural development interventions specified in the strategy; (e) target and financial plans; (e) target and financial plans; (f) a description of the governance and coordination system; (f) a description of the governance and coordination system; (g) a description of the elements that ensure modernisation of the CAP; (g) a description of the elements that ensure modernisation of the CAP; (h) a description of the elements related to simplification and reduced administrative burden for final beneficiaries. (h) a description of the elements related to simplification and reduced administrative burden for final beneficiaries; (i) where appropriate, the list of regional rural development programmes.

Reason

See amendment 24.

Amendment 56

Article 106

Text proposed by the Commission CoR amendment Approval of the CAP Strategic Plan Approval of the CAP Strategic Plan, including, where appropriate, the regional rural development programmes 1. Each Member State shall submit to the Commission a proposal for a CAP Strategic Plan, containing the information referred to in Article 95 no later than 1 January 2020. 1. Each Member State shall submit to the Commission a proposal for a CAP Strategic Plan, containing the information referred to in Article 95 no later than 1 January 2020. 2. The Commission shall assess the proposed CAP Strategic Plans on the basis of the completeness of the plans, the consistency and coherence with the general principles of Union law, with this Regulation and the provisions adopted pursuant to it and with the Horizontal Regulation, their effective contribution to the specific objectives set out in Article 6(1), the impact on the proper functioning of the internal market and distortion of competition, the level of administrative burden on beneficiaries and administration. The assessment shall address, in particular, the adequacy of the strategy of the CAP Strategic Plan, the corresponding specific objectives, targets, interventions and the allocation of budgetary resources to meet the specific CAP Strategic Plan objectives through the proposed set of interventions on the basis of the SWOT analysis and the ex ante evaluation. 2. The Co