P9_TA(2020)0287

Common agricultural policy — support for strategic plans to be drawn up by Member States and financed by the EAGF and by the EAFRD ***I

Amendments (*1) adopted by the European Parliament on 23 October 2020 on the 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)0392 — C8-0248/2018 — 2018/0216(COD)) (1)

(Ordinary legislative procedure: first reading)

(2021/C 404/18)

Amendments 776 and 847

Proposal for a regulation

Recital 1

Text proposed by the Commission Amendment (1) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘The Future of Food and Farming’ of 29 November 2017 sets out the challenges, objectives and orientations for the future Common Agricultural Policy (CAP) after 2020. These objectives include, inter alia, the need for the CAP to be more result-driven, to boost modernisation and sustainability, including the economic, social, environmental and climate sustainability of the agricultural, forestry and rural areas, and to help reducing the Union legislation-related administrative burden for beneficiaries. (1) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘The Future of Food and Farming’ of 29 November 2017 sets out the challenges, objectives and orientations for the future Common Agricultural Policy (CAP) after 2020. These objectives include, inter alia, the need for the CAP to be more result-driven, market-oriented, to boost modernisation and sustainability, including the economic, social, demographic, environmental and climate sustainability of the agricultural, forestry and rural areas, and to help reducing the Union legislation-related administrative burden for beneficiaries. The new policy should also represent a simplification for beneficiaries who should receive a fair income. In order for the CAP to achieve those objectives, it is of utmost importance to keep the same level of financing in the 2021-2027 Multiannual Financial Framework as during the 2014-2020 period.

Amendment 1

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission Amendment (1a) The CAP continues to play a key role in the development of the Union’s rural areas. It is therefore necessary to attempt to slow down the gradual abandonment of agricultural activity by keeping a CAP that is strong, with adequate resources, to mitigate the depopulation of rural areas and to continue meeting consumer expectations in terms of the environment, food safety and animal welfare. In view of the challenges faced by Union producers in responding to new regulatory requirements and a higher level of environmental ambition, against a background of price volatility and Union borders that are more open to imports from third countries, the CAP budget should be kept at least at the same level as during the 2014-2020 period.

Amendment 2

Proposal for a regulation

Recital 1 b (new)

Text proposed by the Commission Amendment (1b) In order to address the global dimension and implications of the CAP, the Commission should ensure coherence and continuity with the other Union external policies and instruments, in particular in development cooperation and trade. The Union’s commitment to policy coherence for development requires the taking into account of development objectives and principles when designing policies.

Amendment 3

Proposal for a regulation

Recital 2

Text proposed by the Commission Amendment (2) Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at Union, international, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden. In the CAP based on delivery of performance (‘delivery model’), the Union should set the basic policy parameters, such as objectives of the CAP and basic requirements, while Member States should bear greater responsibility as to how they meet the objectives and achieve targets. Enhanced subsidiarity makes it possible to better take into account local conditions and needs, tailoring the support to maximise the contribution to Union objectives. (2) Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at Union, international, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden , in particular to the final beneficiaries . In the CAP based on delivery of performance (‘delivery model’), the Union should set the basic policy parameters, such as objectives of the CAP and basic requirements, while Member States should bear greater responsibility as to how they meet the objectives and achieve targets , whilst ensuring policy certainty and financial security for the sector . Enhanced subsidiarity makes it possible to better take into account local conditions and needs, tailoring the support to maximise the contribution to Union objectives. Nevertheless, in order to ensure that such subsidiarity does not represent a ‘renationalisation’ of the CAP, this Regulation should include a strong body of Union provisions designed to prevent the distortion of competition and to ensure non-discriminatory treatment for all Union farmers throughout the territory of the Union.

Amendment 4

Proposal for a regulation

Recital 3

Text proposed by the Commission Amendment (3) The use of common definitions entirely set at Union level has caused certain difficulties for Member States to cater their own specificities at national, regional, and local level. Member States should therefore be given the flexibility to specify certain definitions in their CAP Strategic Plan. In order to ensure a common level playing field, a certain framework has, however, to be set at Union level constituting the necessary essential elements to be included in those definitions (‘framework definitions’). (3) Member States should be given the flexibility to specify certain definitions in their CAP Strategic Plan. In order to ensure a common level playing field, a certain framework has, however, to be set at Union level constituting the necessary common elements to be included in those definitions (‘framework definitions’).

Amendment 5

Proposal for a regulation

Recital 4

Text proposed by the Commission Amendment (4) In order to ensure that the Union can respect its international obligations on domestic support as set out in the WTO Agreement on Agriculture, and in particular that the basic income support for sustainability and related types of interventions continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, the framework definition for ‘agricultural activity’ should provide for both the production of agricultural products or the maintenance of the agricultural area. In light of adjusting to local conditions, Member States should lay down the actual definition of agricultural activity in their CAP Strategic Plans. (4) In order to ensure that the Union can respect its international obligations on domestic support as set out in the WTO Agreement on Agriculture, and in particular that the basic income support for sustainability and related types of interventions continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, the framework definition for ‘agricultural activity’ should provide for both the production of agricultural products or the maintenance of the agricultural area. In light of adjusting to local conditions, Member States should lay down the definition of agricultural activity in their CAP Strategic Plans , complying with the common elements of the Union framework definition .

Amendment 6

Proposal for a regulation

Recital 5

Text proposed by the Commission Amendment (5) 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. (5) In order to retain common essential Union-wide elements to ensure comparability between Member State decisions and equal treatment between Union farmers , 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 and traditional practices . 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 , whether exclusively or not, or that may produce animal feed, whether used for actual production or not.

Amendment 7

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission Amendment (5a) The focus in the future of farming should be on producing high-quality food, as that is where the Union’s competitive advantage lies. Union standards should be maintained and strengthened where feasible, and measures should be provided for to further increase the long-term productivity and competitiveness of the food production sector, and to introduce new technologies and a more efficient use of resources, thereby strengthening the Union’s role as a world leader.

Amendment 8

Proposal for a regulation

Recital 8

Text proposed by the Commission Amendment (8) As regards the areas used for the production of hemp, in order to preserve public health and to ensure the coherence with other bodies of legislation, the use of hemp seeds varieties with tetrahydrocannabinol content below 0,2 % should be part of the definition of eligible hectare. (8) As regards the areas used for the production of hemp, in order to preserve public health and to ensure the coherence with other bodies of legislation, the use of hemp seeds varieties with tetrahydrocannabinol content below 0,3 % should be part of the definition of eligible hectare.

Amendment 9

Proposal for a regulation

Recital 9

Text proposed by the Commission Amendment (9) 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 socio-economic fabric of rural areas. (9) In view of further improving the performance of the CAP, income support should be targeted to active farmers. In order to ensure a common approach at Union level for such a targeting of support, a framework definition for ‘ active farmer’ displaying the common elements should be set out. Support to pluri-active farmers, who are actively farming but who are also engaged in non-agricultural activities outside their farm, should not be precluded, as their multiple activities often strengthen the socio-economic fabric of rural areas. That framework definition should, in any event, help to preserve the model of family farming that exists in the Union.

Amendment 10

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission Amendment (9a) Equality between women and men is a core principle of the Union and gender mainstreaming is an important tool in the integration of that principle into to the CAP. There should therefore be a particular focus on promoting the participation of women in the socio-economic development of rural areas. The size of female-operated farms tends to be smaller and the work performed by women, as farmers’ spouses, is not always recognised and visible, which has an impact on their economic independence. This Regulation should help to ensure that the work that women do is more visible, better appreciated and taken into account within the specific objectives to be proposed by the Member States in their strategic plans. Gender equality as well as non-discrimination principles should be an integral part of the preparation, implementation and evaluation of CAP interventions. Member States shall also strengthen their capacity in gender mainstreaming and in the collection of sex-disaggregated data.

Amendment 11

Proposal for a regulation

Recital 10

Text proposed by the Commission Amendment (10) In order to ensure consistency between the direct payments types of interventions and rural development types of interventions when addressing the objective of generational renewal, a framework definition for ‘young farmer’ with the essential elements should be set out at Union level. (10) In order to ensure consistency between the direct payments types of interventions and rural development types of interventions when addressing the objective of generational renewal, a framework definition for ‘young farmer’ with common elements should be set out at Union level.

Amendment 12

Proposal for a regulation

Recital 10 a (new)

Text proposed by the Commission Amendment (10a) In order to ensure consistency between the direct payments types of interventions and rural development types of interventions when addressing the objective of facilitating business development in rural areas, a framework definition for ‘new farmer’ with common elements should be set out at Union level.

Amendment 13

Proposal for a regulation

Recital 11

Text proposed by the Commission Amendment (11) 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 . (11) In order to pursue 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 pursued 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 in the economic, environmental and social spheres .

Amendment 14

Proposal for a regulation

Recital 13

Text proposed by the Commission Amendment (13) While under the CAP delivery model the Union should set the Union objectives and define the types of interventions as well as the basic Union requirements applicable to Member States, the latter should be in charge of translating that Union framework into support arrangements applicable to beneficiaries. In that context, Member States should act in line with the Charter of Fundamental Rights, general principles of Union law and ensure that the legal framework for the granting of Union support to beneficiaries be based on their CAP Strategic plans and be in line with the principles and requirements set out under this Regulation and the [Horizontal Regulation]. (13) While under the CAP delivery model the Union should set the Union objectives and define the types of interventions as well as the common Union requirements applicable to Member States, the latter should be in charge of translating that Union framework into support arrangements applicable to beneficiaries. In that context, Member States should act in line with the Charter of Fundamental Rights, general principles of Union law and ensure that the legal framework for the granting of Union support to beneficiaries be based on their CAP Strategic plans and be in line with the principles and requirements set out under this Regulation and the [Horizontal Regulation].

Amendment 15

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission Amendment (13a) The cross-cutting principles set out in Article 3 of the Treaty on European Union (TEU) and in Article 10 TFEU, including the principles of subsidiarity and proportionality as set out in Article 5 TEU, should be observed when implementing the CAP Strategic Plans. Member States and the Commission should also comply with the obligations of the United Nations Convention on the Rights of Persons with Disabilities and ensure accessibility in line with Article 9 thereof and in accordance with Union law harmonising accessibility requirements for products and services. Member States and the Commission should seek to eliminate inequalities and promote equality between men and women and gender mainstreaming, as well as to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) should not support actions that contribute to any form of segregation, discrimination, or exclusion. The objectives of those funds should be pursued from the perspective of sustainable development and in line with the aim, promoted under the Aarhus Convention and by the Union, of preserving, protecting, and improving the quality of the environment and combating climate change, as set out in Article 11 and Article 191(1) TFEU, while applying the ‘polluter pays’ principle.

Amendment 16

Proposal for a regulation

Recital 13 b (new)

Text proposed by the Commission Amendment (13b) The delivery model should not lead to a situation in which there are 27 different national agricultural policies, thus endangering the common spirit of the CAP and creating distortions. It should leave to Member States a certain degree of flexibility within a strong common regulatory framework.

Amendments 17 and 779

Proposal for a regulation

Recital 15

Text proposed by the Commission Amendment (15) 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. (15) In the context of greater market-orientation of the CAP, as outlined by the Communication on ‘The Future of Food and Farming’, market exposure, absence of reciprocity clauses in trade agreements with third countries, 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 . Inequalities in the food chain, mainly at the expense of the primary sector, which is the ‘weakest link’, also have an adverse effect on producers’ incomes . Thus, although farmers are ultimately responsible for designing their on-farm strategies and for improving the resilience of their farms , 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.

Amendment 18

Proposal for a regulation

Recital 16

Text proposed by the Commission Amendment (16) Bolstering environmental care and climate action and contributing to the achievement of Union environmental- and climate-related objectives is a very high priority in the future of Union agriculture and forestry. The architecture of the CAP should therefore reflect greater ambition with respect to these objectives. By virtue of the delivery model, action taken to tackle environmental degradation and climate change should be result-driven and Article 11 TFEU should, for this purpose, be considered as an obligation of result. (16) Supporting and improving environmental protection, biodiversity and genetic diversity in the agricultural system, as well as climate action and contributing to the achievement of Union environmental- and climate-related objectives is a very high priority in the future of Union agriculture , horticulture and forestry. The architecture of the CAP should therefore reflect greater ambition with respect to these objectives , while at the same time reflecting adequately the greater burden and requirements before the producers . By virtue of the delivery model, action taken to tackle environmental degradation and climate change should be result-driven and Article 11 TFEU should, for this purpose, be considered as an obligation of result. As many rural areas in the Union suffer from structural problems such as lack of attractive employment opportunities, skill shortages, underinvestment in connectivity, infrastructures and essential services, as well as youth drain, it is fundamental to strengthen the socio-economic fabric in those areas, in line with the Cork 2.0. Declaration, particularly through job creation and generational renewal, by bringing the Commission's jobs and growth to rural areas, promoting social inclusion, generational renewal and the development of ‘Smart Villages’ across the European countryside. As indicated in the Communication on ‘The Future of Food and Farming’, new rural value chains such as renewable energy, the emerging bio-economy, the circular economy, and ecotourism can offer good growth and job potential for rural areas. In this context, financial instruments and the use of the InvestEU guarantee can play a crucial role for ensuring access to financing and for bolstering the growth capacity of farms and enterprises. There is a potential for employment opportunities in rural areas for legally staying third country nationals, promoting their social and economic integration especially in the framework of Community-led Local Development strategies. As many rural areas in the Union suffer from structural problems such as lack of attractive employment opportunities, skill shortages, underinvestment in broadband and connectivity, infrastructures and essential services, as well as youth drain, it is fundamental to strengthen the socio-economic fabric in those areas, in line with the Cork 2.0. Declaration, particularly through job creation and generational renewal, by bringing the Commission's jobs and growth to rural areas, promoting social inclusion, support for young people, greater participation by women in the rural economy generational renewal and the development of ‘Smart Villages’ across the European countryside. With a view to stabilising and diversifying the rural economy, the development, establishment and retention of non-agricultural enterprises should be supported. As indicated in the Communication on ‘The Future of Food and Farming’, new rural value chains such as renewable energy, the emerging bio-economy, the circular economy, and ecotourism can offer good growth and job potential for rural areas , while conserving natural resources . In this context, financial instruments can play a crucial role for ensuring access to financing and for bolstering the growth capacity of farms and enterprises. There is a potential for employment opportunities in rural areas for legally staying third country nationals, promoting their social and economic integration especially in the framework of Community-led Local Development strategies.

Amendment 19

Proposal for a regulation

Recital 16 a (new)

Text proposed by the Commission Amendment (16a) For the socio-economic sustainability of rural areas, the Commission should check that the Member States ensure in their CAP Strategic Plans that there is coherence between the application of Directive 2010/41/EU of the European Parliament and of the Council (1a) and the long - term approach on the use of Rural Development funds.

Amendment 853

Proposal for a regulation

Recital 16 b (new)

Text proposed by the Commission Amendment (16b) Agriculture can be an important engine of growth and poverty reduction, but the sector is underperforming in many countries in part because women, who greatly contribute to the rural economy, face constrains. Effective action should be taken by Member States to support women’s key role in the development and preservation of rural areas.

Amendments 20 and 781

Proposal for a regulation

Recital 17

Text proposed by the Commission Amendment (17) 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. (17) The CAP should keep ensuring food security, which should be understood as meaning access to sufficient, safe , healthy 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, high-quality production and quality differentiation, food waste and animal welfare. The CAP should continue to promote sustainable production with specific and valuable characteristics, such as High Nature Value farming systems, while at the same time helping farmers to proactively adjust their production according to market signalsand consumers’ demands.

Amendment 782

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission Amendment (17a) In line with their commitment to the 2030 Agenda and the Paris Agreement, and with the conclusions of the International Assessment of Agricultural Knowledge, Science and Technology for Development, as well as the recommendations of the United Nations Special Rapporteur on the right to food, the Union and its Member States should transition to a sustainable European food and agriculture system. The pathway for that transition should focus on promoting diversified, sustainable and resilient agricultural practices that contribute to protecting and enhancing natural resources, reinforcing ecosystems and to climate change adaptation and mitigation, through adjusting livestock production to ecological carrying capacities, minimising dependence on unsustainable inputs including fossil energies and progressively improving biodiversity and soil quality.

Amendments 21 and 783

Proposal for a regulation

Recital 17 b (new)

Text proposed by the Commission Amendment (17b) While the One Health Action Plan against antimicrobial resistance (AMR) considers vaccination to be a cost-effective public health intervention to combat AMR, the relatively higher cost of diagnosis, antimicrobial alternatives and vaccination compared with conventional antibiotics are an obstacle to increasing the vaccination rate of animals.

Amendment 784

Proposal for a regulation

Recital 17 c (new)

Text proposed by the Commission Amendment (17c) In order to meet the environmental objectives of the CAP but also societal requirements in terms of increased food safety, the use of fertilising products with very low levels of heavy metals should be promoted.

Amendment 1100

Proposal for a regulation

Recital 19 a (new)

Text proposed by the Commission Amendment (19a) In order to ensure the well-being of farmers and their families, and bearing in mind that stress is a major cause of farm accidents, Member States shall ensure the social sustainability of the policy by keeping the regulatory and administrative burden at the minimum, allowing for a healthy work-life balance for farmers, and ensuring viability of farming in the Union.

Amendments 728 and 785

Proposal for a regulation

Recital 21

Text proposed by the Commission Amendment (21) Building on the previous system of cross-compliance implemented until 2020, the system of new conditionality links full receipt of CAP support to the compliance by beneficiaries of basic standards concerning the environment, climate change, public health, animal health, plant health and animal welfare. The basic standards encompass in a streamlined form a list of statutory management requirements (SMRs) and standards of good agricultural and environmental conditions of land (GAECs). These basic standards should better take into account the environmental and climate challenges and the new environmental architecture of the CAP, thus delivering a higher level of environmental and climate ambition as the Commission announced in its Communications on the ‘Future of Food and Farming’ and the Multiannual Financial Framework (MFF). Conditionality aims to contribute to the development of sustainable agriculture through better awareness on the part of beneficiaries of the need to respect those basic standards. It also aims to make the CAP more compatible with the expectations of society through improving consistency of the policy with the environment, public health, animal health, plant health and animal welfare objectives. Conditionality should form an integral part of the environmental architecture of the CAP, as part of the baseline for more ambitious environmental and climate commitments, and should be comprehensively applied across the Union. For those farmers who do not comply with those requirements, Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with [the HZR Regulation]. (21) Building on the previous system of cross-compliance implemented until 2020, the system of new conditionality links full receipt of CAP support to the compliance by beneficiaries of basic standards concerning the environment, climate change, public health , applicable working and employment conditions , animal health, plant health and animal welfare. The basic standards encompass in a streamlined form a list of statutory management requirements (SMRs) and standards of good agricultural and environmental conditions of land (GAECs). These basic standards should better take into account the environmental and climate challenges and the new environmental architecture of the CAP, thus delivering a higher level of environmental and climate ambition as the Commission announced in its Communications on the ‘Future of Food and Farming’ and the Multiannual Financial Framework (MFF). Moreover it is of particular importance that Member States take relevant measures to ensure employers’ access to direct payments is conditional on the compliance with the applicable working and employment conditions and/or employer obligations resulting from all relevant collective agreements and social and labour law at national and Union levels, inter alia in the field of awareness of conditions of employment, remuneration, working time, health and safety, housing, gender equality, free movement of workers, equal treatment, posting of workers, conditions of stay of third-country nationals, temporary agency work, social protection and social security coordination among Member States. Conditionality aims to contribute to the development of sustainable agriculture through better awareness on the part of beneficiaries of the need to respect those basic standards. Beneficiaries should also be appropriately compensated to deliver these standards. It also aims to make the CAP more compatible with the expectations of society through improving consistency of the policy with the environment, labour standards, public health, animal health, plant health and animal welfare objectives. Conditionality should form an integral part of the environmental and social architecture of the CAP, as part of the baseline for more ambitious environmental , social and climate commitments, and should be comprehensively applied across the Union. For those farmers who do not comply with those requirements, Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with [the HZR Regulation].

Amendment 22

Proposal for a regulation

Recital 22

Text proposed by the Commission Amendment (22) 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. (22) 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. 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, the agronomic characteristics of different productions, differences between annual crops, permanent crops and other specialised production, land use, crop rotation, local and traditional farming practices and farm structures. Member States may also define equivalent practices or certification systems having a beneficial impact on the climate and the environment which is similar to or better than the impact of one or more GAEC practices.

Amendment 1127

Proposal for a regulation

Recital 22 a (new)

Text proposed by the Commission Amendment (22a) In order to tackle the Union-wide biodiversity decline, it is essential to ensure a minimum level of non-productive areas and features under conditionality and eco-schemes in all Member States. In that context, Member States should aim, in their Strategic Plans, to provide an area of at least 10 % of landscape elements beneficial for biodiversity. Those should include, inter alia, buffer strips, rotational or non-rotational fallow land, hedges, non-productive trees, terrace walls, and ponds, all of which contribute to enhancing carbon sequestration, preventing soil erosion and depletion, filtering air and water, and supporting climate adaptation.

Amendment 23

Proposal for a regulation

Recital 23

Text proposed by the Commission Amendment (23) SMRs need to be fully implemented by Member States in order to become operational at farm level and ensure equal treatment of farmers. To ensure the consistency of the rules on conditionality in enhancing the sustainability of the policy, SMRs should encompass main Union legislation on environment, public health, animal health, plant health and animal welfare which implementation at national level imply precise obligations on individual farmers, including obligations under Council Directive 92/43/EEC (11) and Directive 2009/147/EC of the European Parliament and of the Council (12) or Council Directive 91/676/EEC (13). In order to follow up on the joint statement made by the European Parliament and the Council as annexed to Regulation (EU) No 1306/2013 of the European Parliament and of the Council (14), the relevant provisions of Directive 2000/60/EC of the European Parliament and of the Council (15) and Directive 2009/128/EC of the European Parliament and of the Council (16) are included as SMRs into the scope of conditionality and the list of GAEC standards is adapted accordingly. (23) SMRs need to be fully implemented by Member States in order to become operational at farm level and ensure equal treatment of farmers. To ensure the consistency of the rules on conditionality in enhancing the sustainability of the policy, SMRs should encompass main Union legislation on environment, public health, animal health, plant health and animal welfare which implementation at national level imply precise obligations on individual farmers, including obligations under Council Directive 92/43/EEC (11) and Directive 2009/147/EC of the European Parliament and of the Council (12) or Council Directive 91/676/EEC (13). In order to follow up on the joint statement made by the European Parliament and the Council as annexed to Regulation (EU) No 1306/2013 of the European Parliament and of the Council (14), the relevant provisions of Directive 2000/60/EC of the European Parliament and of the Council (15) (the Water Framework Directive) and Directive 2009/128/EC of the European Parliament and of the Council (16) are included as SMRs into the scope of conditionality and the list of GAEC standards is adapted accordingly.

Amendment 24

Proposal for a regulation

Recital 24

Text proposed by the Commission Amendment (24) 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. (24) Member States should provide high-quality 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. Any Union initiatives regarding advisory services and innovation systems should be built, whenever possible, upon existing ones at Member State level.

Amendment 25

Proposal for a regulation

Recital 26

Text proposed by the Commission Amendment (26) Union legislation should provide that Member States should set requirements in terms of minimum area for receiving decoupled payments in their CAP Strategic Plan. Such requirements should relate to the need to avoid the excessive administrative burden caused by managing numerous payments of small amounts and to that of ensuring an effective contribution of the support to the objectives of the CAP to which the decoupled direct payments contribute. In order to guarantee a minimum level of agricultural income support for all genuine farmers, as well as to comply with the Treaty objective in ensuring a fair standard of living for the agricultural community, an annual area-based decoupled payment should be established as the type of intervention ‘basic income support for sustainability’. In order to enhance better targeting of this support, the payment amounts can be differentiated, by groups of territories, based on socio-economic and/or agronomic conditions. In view of avoiding disruptive effects for farmers' income, Member States may choose to implement the basic income support for sustainability based on payment entitlements. In this case, the value of payment entitlements before any further convergence should be proportional to their value as established under the basic payment schemes pursuant to Regulation (EU) No 1307/2013, taking also into account the payments for agricultural practices beneficial for the climate and the environment. Member States should also achieve further convergence in order to continue to move progressively away from historical values. (26) Union legislation should provide that Member States should set requirements in terms of minimum area for receiving decoupled payments in their CAP Strategic Plan. Such requirements should relate to the need to avoid the excessive administrative burden caused by managing numerous payments of small amounts and to that of ensuring an effective contribution of the support to the objectives of the CAP to which the decoupled direct payments contribute. In order to guarantee a minimum level of agricultural income support for all active farmers, as well as to comply with the Treaty objective in ensuring a fair standard of living for the agricultural community, an annual area-based decoupled payment should be established as the type of intervention ‘basic income support for sustainability’. In order to enhance better targeting of this support, the payment amounts can be differentiated, by groups of territories, based on socio-economic , environmental and/or agronomic conditions. In view of avoiding disruptive effects for farmers' income, Member States may choose to implement the basic income support for sustainability based on payment entitlements. In this case, the value of payment entitlements before any further convergence should be proportional to their value as established under the basic payment schemes pursuant to Regulation (EU) No 1307/2013, taking also into account the payments for agricultural practices beneficial for the climate and the environment. Member States should also achieve further convergence in order to move progressively to full convergence by 2026

Amendment 26

Proposal for a regulation

Recital 26 a (new)

Text proposed by the Commission Amendment (26a) Income support through the CAP is a major contributor to the stability and sustainability of many small and family farms across Europe, and although expectations on farmers have increased, monetary benefits have not. The CAP's overall share of the Union’s budget is decreasing, while market crises in the sector and a falling number of active famers continue to threaten the survival of the sector. The family farm model should be protected as a general objective of the CAP and through the Member State Strategic Plans, giving proper place to the vital role this model has in contributing to the social fabric of rural life, and the provision of a way of life for many rural dwellers. Family farms contribute to sustainable food production, the preservation of natural resources, diversification needs and ad ensuring food security. The first farmers to suffer under the immense pressures of globalisation will be those that pursue the small family farm model. Such a situation would be an obvious failure to meet the objectives of the CAP and would undermine the argument for support of the CAP in future. Therefore the CAP Strategic Plans should pursue through their specific objectives keeping the protection of that farming model.

Amendment 27

Proposal for a regulation

Recital 28

Text proposed by the Commission Amendment (28) 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. (28) 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 direct payments by providing a round some payment for small farmers. However, with a view to further reducing the administrative burden, Member States should be authorised to automatically include certain farmers, initially, within the simplified scheme, offering them the possibility of withdrawing from it by a specific deadline. In line with the principle of proportionality, the Member States should be given the possibility of establishing a reduced system of conditionality checks for small farmers that participate in the simplified scheme .

Amendments 28 and 791

Proposal for a regulation

Recital 30 a (new)

Text proposed by the Commission Amendment (30a) Organic farming is developing in many Member States and has a proven track record of delivering public goods, preserving ecosystems services and natural resources, reducing inputs, attracting young farmers and women in particular, creating jobs, experimenting with new business models, meeting societal demands, and revitalising rural areas. Yet the growth in demand for organic products continues to outpace the growth in production. Member States should ensure that their CAP Strategic Plans include objectives to increase the share of agricultural land under organic management in order to meet the increasing demand for organic products, and to develop the whole organic supply chain. Member States should be able to fund organic conversion and maintenance either through rural development measures or through eco-schemes, or through a combination of both, and should ensure that allocated budgets match the expected growth in organic production.

Amendments 29 and 792

Proposal for a regulation

Recital 31

Text proposed by the Commission Amendment (31) The CAP should ensure that Member States increase the environmental delivery by respecting local needs and farmers' actual circumstances. Member States should under direct payments in the CAP Strategic Plan set up Eco-schemes voluntary for farmers, which should be fully coordinated with the other relevant interventions. They should be defined by the Member States as a payment granted either for incentivising and remunerating the provision of public goods by agricultural practices beneficial to the environment and climate or as a compensation for the introduction of these practices. In both cases they should aim at enhancing the environmental and climate performance of the CAP and should consequently be conceived to go beyond the mandatory requirements already prescribed by the system of conditionality. Member States may decide to set up eco-schemes for agricultural practices such as the enhanced management of permanent pastures and landscape features, and organic farming. These schemes may also include ‘entry-level schemes’ which may be a condition for taking up more ambitious rural development commitments. (31) The CAP should ensure that Member States increase the environmental delivery by respecting local needs and farmers' actual circumstances. Member States should under direct payments in the CAP Strategic Plan set up , on the basis of a list of agricultural practices beneficial for the climate and the environment established by the Commission, eco-schemes voluntary for farmers, which should be fully coordinated with the other relevant interventions. They should be defined by the Member States as a payment granted either for incentivising and remunerating the provision of public goods by agricultural practices beneficial to the environment and climate, they should aim at enhancing the environmental and climate performance of the CAP and should consequently be conceived to go beyond the mandatory requirements already prescribed by the system of conditionality. Member States should set aside a certain percentage of their direct payments allocation for the eco-schemes. Member States may decide to set up eco-schemes to promote production models that are beneficial for the environment, particularly extensive livestock rearing, and to promote all kinds of agricultural practices such as the enhanced management of permanent pastures and permanent landscape features, and to set up environmental certification schemes , such as organic farming , integrated production, or conservation agriculture . These schemes may also include measures of a type other than rural development environmental and climate commitments, or measures of the same nature that may be classified as ‘entry-level schemes’ which may be a condition for taking up more ambitious rural development commitments.

Amendment 30

Proposal for a regulation

Recital 33

Text proposed by the Commission Amendment (33) Compliance of coupled income support with the Union's international commitments should be ensured. This includes in particular the requirements of the Memorandum of Understanding between the European Economic Community and the United States of America on oilseeds within the framework of the GATT (17) , as applicable subsequent to changes to the EU separate base area for oilseeds following changes to the composition of the EU. The Commission should have the power to adopt implementing acts for this purpose of laying down detailed rules in this respect. deleted

Amendment 31

Proposal for a regulation

Recital 35

Text proposed by the Commission Amendment (35) Sectoral types of interventions are needed to contribute to the CAP objectives and reinforce synergies with other CAP instruments. In line with the delivery model, minimum requirements concerning the contents and objectives for such sectoral types of interventions should be elaborated at Union level in order to ensure a level playing field in the internal market and avoid conditions of unequal and unfair competition. Member States should justify their inclusion in their CAP Strategic Plans and ensure consistency with other interventions at sectoral level. The broad types of interventions to be established at Union level should cover the sectors of fruit and vegetables, wine, apiculture products, olive oil and table olives, hops and other products to be defined, for which the establishment of sectoral programs is deemed to have beneficial effects on the achievement of some or all of the general and specific objectives of the CAP pursued by this Regulation. (35) Sectoral types of interventions are needed to contribute to the CAP objectives and reinforce synergies with other CAP instruments. In line with the delivery model, minimum requirements concerning the contents and objectives for such sectoral types of interventions should be elaborated at Union level in order to ensure a level playing field in the internal market and avoid conditions of unequal and unfair competition. Member States should justify their inclusion in their CAP Strategic Plans and ensure consistency with other interventions at sectoral level. The broad types of interventions to be established at Union level should cover the sectors of fruit and vegetables, wine, apiculture products, olive oil and table olives, hops and other products defined in Article 39 , for which the establishment of sectoral programs is deemed to have beneficial effects on the achievement of some or all of the general and specific objectives of the CAP pursued by this Regulation.

Amendment 32

Proposal for a regulation

Recital 35 a (new)

Text proposed by the Commission Amendment (35a) In view of the increase in the allocation provided for the apiculture sector and in recognition of the important role it plays in preserving biodiversity and food production, it is appropriate to also increase the Union co-financing ceiling and to add new eligible measures designed to promote the sector’s development.

Amendment 33

Proposal for a regulation

Recital 37

Text proposed by the Commission Amendment (37) For interventions for rural development, principles are defined at Union level, particularly with regard to the basic requirements for the Member States to apply selection criteria. However, Member States should have ample discretion to define specific conditions according to their needs. Types of interventions for rural development include payments for environmental, climate and other management commitments that Member States should support throughout their territories, in accordance with their national, regional or local specific needs. Member States should grant payments to farmers and other land managers who undertake, on a voluntary basis, management commitments that contribute to climate change mitigation and adaptation and to the protection and improvement of the environment including water quality and quantity, air quality, soil, biodiversity and ecosystem services including voluntary commitments in Natura 2000 and support for genetic diversity. Support under payments for management commitments may also be granted in the form of locally-led, integrated or cooperative approaches and result-based interventions. (37) For interventions for rural development, principles are defined at Union level, particularly with regard to the basic requirements for the Member States to apply selection criteria. However, Member States should have ample discretion to define specific conditions according to their needs. Types of interventions for rural development include payments for environmental, climate and other management commitments that Member States should support throughout their territories, in accordance with their national, regional or local specific needs. Member States should grant payments to farmers, groups of farmers and other land managers who undertake, on a voluntary basis, management commitments that contribute to climate change mitigation and adaptation and to the protection and improvement of the environment including water quality and quantity, air quality, soil, biodiversity and ecosystem services including voluntary commitments in Natura 2000 , and in High Nature Value Areas and support for genetic diversity. Support under payments for management commitments may also be granted in the form of locally-led, integrated , collective or cooperative approaches and result-based interventions.

Amendment 729

Proposal for a regulation

Recital 37 a (new)

Text proposed by the Commission Amendment (37a) In view of ensuring the resilience of the Union's ecosystems and promoting biodiversity, Member States should be allowed to grant payments to agri-environmental sustainable practices, for climate mitigation and adaptation and for the protection and improvement of genetic resources, in particular through traditional breeding methods.

Amendments 34, 794 and 856

Proposal for a regulation

Recital 38

Text proposed by the Commission Amendment (38) 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. (38) Support for management commitments shall include organic farming premia for the conversion to organic land and may include those for the maintenance of organic land; payments for other types of interventions supporting environmentally friendly production systems such as High Nature Value farming , agro-ecology, and integrated production; forest environmental and climate services and forest conservation; premia for forests and establishment of agroforestry systems; the protection of traditional agricultural landscapes, animal welfare and animal health ; conservation, sustainable use and development of genetic resources and biodiversity . Member States may develop other schemes under this type of interventions on the basis of their needs and they may strengthen the agri-environmental measures specific to the beekeeping sector which already exist in certain regions of the Union, and develop further measures. This type of payments should cover additional costs , financial incentives 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 . Member States should also provide financial incentives to beneficiaries. 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.

Amendments 35 and 795

Proposal for a regulation

Recital 39

Text proposed by the Commission Amendment (39) Forestry measures should contribute to the implementation of the Union Forest Strategy, and be based on Member States' national or sub-national forest programs or equivalent instruments, which should build on the commitments stemming from the Regulation on the inclusion of greenhouse gas emission and removals from land use, land use energy and forestry [LULUCF Regulation] and those made in the Ministerial Conferences on the Protection of Forests in Europe. Interventions should be based on forest management plans or equivalent instruments and may comprise forest area development and sustainable management of forests, including the afforestation of land and the creation and regeneration of agroforestry systems; the protection, restoration and improvement of forest resources, taking into account adaptation needs; investments to guarantee and enhance forest conservation and resilience, and the provision of forest ecosystem and climate services; and measures and investments in support of the renewable energy and bio-economy. (39) Forestry measures should contribute to widening the use of agroforestry systems and to the implementation of the Union Forest Strategy, and be based on Member States' national or sub-national forest programs or equivalent instruments, which should build on the commitments stemming from Regulation (EU) 2018/841 of the European Parliament and of the Council (1a) and those made by the Ministerial Conferences on the Protection of Forests in Europe. Interventions should be based on sustainable forest management plans or equivalent instruments delivering effective carbon sequestration from the atmosphere while enhancing biodiversity and may comprise forest area development and sustainable management of forests, including the afforestation of land , fire prevention and the creation and regeneration of agroforestry systems; the protection, restoration and improvement of forest resources, taking into account adaptation needs; investments to guarantee and enhance forest conservation and resilience, and the provision of forest ecosystem and climate services; and measures and investments in support of the renewable energy and bio-economy.

Amendment 36

Proposal for a regulation

Recital 40

Text proposed by the Commission Amendment (40) 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. (40) 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, including mountain areas and island regions. 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 established by Council Directive 92/43/EEC (1a) and of the Water Framework Directive . 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 , while at the same time allowing enough flexibility in Strategic Plans to facilitate complementarity between different interventions . 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.

Amendment 37

Proposal for a regulation

Recital 41

Text proposed by the Commission Amendment (41) 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. (41) The objectives of the CAP should also be pursued through support for investments, productive as well as non-productive, which aim to strengthen farms’ resilience . 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.

Amendment 38

Proposal for a regulation

Recital 42

Text proposed by the Commission Amendment (42) In the light of the need to fill the investment gap in the Union agricultural sector and improve access to financial instruments for priority groups, notably young farmers and new entrants with higher risk profiles, use of the InvestEU guarantee and combination of grants and financial instruments should be encouraged. Since the use of financial instruments across Member States varies considerably as a result of differences in terms of access to finance, banking sector development, presence of risk capital, familiarity of public administrations and potential range of beneficiaries, Member States should establish in the CAP Strategic Plan appropriate targets, beneficiaries and preferential conditions, and other possible eligibility rules. (42) In the light of the need to fill the investment gap in the Union agricultural sector and improve access to financial instruments for priority groups, notably young farmers and new entrants with higher risk profiles, a combination of grants and financial instruments should be encouraged. Since the use of financial instruments across Member States varies considerably as a result of differences in terms of access to finance, banking sector development, presence of risk capital, familiarity of public administrations and potential range of beneficiaries, Member States should establish in the CAP Strategic Plan appropriate targets, beneficiaries and preferential conditions, and other possible eligibility rules.

Amendment 39

Proposal for a regulation

Recital 43

Text proposed by the Commission Amendment (43) Young farmers and new entrants still face significant barriers regarding access to land, high prices and access to credit. Their businesses are more threatened by price volatility (for both inputs and produce) and their needs in terms of training in entrepreneurial and risk management skills are high. It is therefore essential to continue the support for the setting up of new businesses and new farms. Member States should provide for a strategic approach and identify a clear and coherent set of interventions for generational renewal under the specific objective dedicated to this issue. To this aim, Member States may set in their CAP Strategic Plans preferential conditions for financial instruments for young farmers and new entrants, and should include in their CAP Strategic Plan the ring-fencing of at least an amount corresponding to 2 % of the annual direct payments' envelope. An increase of the maximum amount of aid for the installation of young farmers and rural business start-ups, up to EUR 100 000 , which can be accessed also through or in combination with financial instrument form of support, should be established. (43) Young farmers and new farmers still face significant barriers regarding access to land, high prices and access to credit. Their businesses are more threatened by price volatility (for both inputs and produce) and their needs in terms of training in entrepreneurial , risk prevention and management skills are high. It is therefore essential to continue the support for the setting up of new businesses and new farms. Member States should provide for a strategic approach and identify a clear and coherent set of interventions for generational renewal under the specific objective dedicated to this issue. To this aim, Member States may set in their CAP Strategic Plans preferential conditions for financial instruments for young farmers and new entrants, and should include in their CAP Strategic Plan the ring-fencing of at least an amount corresponding to 2 % of the annual direct payments’ envelope in the first pillar . An increase of the maximum amount of aid for the installation of young farmers and rural business start-ups, up to EUR 100 000 , which can be accessed also through or in combination with financial instrument form of support, should be established.

Amendment 40

Proposal for a regulation

Recital 44

Text proposed by the Commission Amendment (44) 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. (44) 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 order to adapt the risk management tools to the challenges faced by farmers, including climate change, the CAP toolbox should include compensation for the costs and losses incurred by farmers in connection with measures taken to combat animal diseases and plant pests, or for the losses incurred by organic farmers as a result of an external contamination for which they are not responsible. However, the compatibility of EARDF-financed interventions with national risk management systems should be ensured.

Amendments 41 and 796

Proposal for a regulation

Recital 45

Text proposed by the Commission Amendment (45) Support should enable the establishment and implementation of cooperation between at least two entities in view of achieving CAP objectives. Support can entail all aspects of such cooperation, such as the setting up of quality schemes; collective environmental and climate action; the promotion of short supply chain and local markets; pilot projects; Operational Group projects within the EIP for agricultural productivity and sustainability local development projects, Smart Villages, buyers' clubs and machinery rings; farm partnerships; forest management plans; networks and clusters; social farming; community supported agriculture; actions within the scope of LEADER; and the setting up of producer groups and producer organisations, as well as other forms of cooperation deemed necessary to achieve the specific objectives of the CAP. (45) Support should enable the establishment and implementation of cooperation between at least two entities in view of achieving CAP objectives. Support can entail all aspects of such cooperation, such as the setting up, certification costs, promotion and maintenance of quality schemes; collective environmental and climate action; the promotion of short supply chain and local markets; pilot projects; Operational Group projects within the EIP for agricultural productivity and sustainability local development projects, Smart Villages, buyers' clubs and machinery rings; farm partnerships; forest management plans , including agroforestry ; networks and clusters; social farming; community supported agriculture; actions within the scope of LEADER; and the setting up of producer groups and producer organisations, including producer groups recognised under Regulation (EU) No 1151/2012 of the European Parliament and of the Council (1a), as well as other forms of cooperation deemed necessary to achieve the specific objectives of the CAP. As a way of promoting intergenerational renewal, consideration should be given to granting specific support to farmers who wish to stop farming before reaching the statutory retirement age and intend to hand over their farm to a cooperating younger farmer.

Amendment 42

Proposal for a regulation

Recital 47

Text proposed by the Commission Amendment (47) The EAGF should continue financing types of interventions in the form of direct payments and sectoral types of interventions, whereas the EAFRD should continue financing types of interventions for rural development as described in this Regulation. The rules for the financial management of the CAP should be laid down separately for the two funds and for the activities supported by each of them, taking into account that the new delivery model gives more flexibility and subsidiarity for Member States to reach their objectives. Types of interventions under this Regulation should cover the period from 1 January 2021 to 31 December 2027. (47) The EAGF should continue financing types of interventions in the form of direct payments and sectoral types of interventions, whereas the EAFRD should continue financing types of interventions for rural development as described in this Regulation. The rules for the financial management of the CAP should be laid down separately for the two funds and for the activities supported by each of them, taking into account that the new delivery model gives more flexibility and subsidiarity for Member States to reach their objectives. Types of interventions under this Regulation should cover the period from 1 January 2022 to 31 December 2027.

Amendment 43

Proposal for a regulation

Recital 48

Text proposed by the Commission Amendment (48) Support for direct payments under the CAP Strategic Plans should be granted within national allocations to be fixed by this Regulation. These national allocations should reflect a continuation of the changes whereby the allocations to Member States with the lowest support level per hectare are gradually increased to close 50 % of the gap towards 90 % of the Union average. In order to take into account the reduction of payments' mechanism and the use of its product in the Member State, the total indicative financial allocations per year in the CAP Strategic Plan of a Member State should be allowed to exceed the national allocation. (48) The EAGF should not provide support to activities that would harm the environment, or which are not consistent with climate and environmental objectives in line with sustainable agricultural management principles. Support for direct payments under the CAP Strategic Plans should be granted within national allocations to be fixed by this Regulation. These national allocations should reflect a continuation of the changes whereby the allocations to Member States with the lowest support level per hectare are gradually increased to close 50 % of the gap towards 90 % of the Union average. In order to take into account the reduction of payments' mechanism and the use of its product in the Member State, the total indicative financial allocations per year in the CAP Strategic Plan of a Member State should be allowed to exceed the national allocation.

Amendment 44

Proposal for a regulation

Recital 49

Text proposed by the Commission Amendment (49) In order to facilitate the management of EAFRD funds, a single contribution rate for support from the EAFRD should be set in relation to public expenditure in the Member States. In order to take account of their particular importance or nature, specific contribution rates should be set in relation to certain types of operations. In order to mitigate the specific constraints resulting from the level of development, the remoteness and insularity , an appropriate EAFRD contribution rate should be set for less developed regions, the outermost regions referred to in Article 349 TFEU and the smaller Aegean islands . (49) In order to facilitate the management of EAFRD funds, a general contribution rate for support from the EAFRD should be set in relation to public expenditure in the Member States. In order to take account of their particular importance or nature, specific contribution rates should be set in relation to certain types of operations. In order to mitigate the specific constraints resulting from the level of development, the remoteness and insularity of the outermost regions referred to in Article 349 TFEU and the smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013 of the European Parliament and of the Council (1a) , a higher EAFRD contribution rate should be set for those regions .

Amendment 45

Proposal for a regulation

Recital 49 a (new)

Text proposed by the Commission Amendment (49a) Objective criteria should be established for categorising regions and areas at Union level for support from the EAFRD. To that end, the identification of the regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and the Council (1a) . The latest classifications and data should be used to ensure adequate support, in particular for addressing lagging behind regions and interregional disparities inside a Member State.

Amendments 46 and 797

Proposal for a regulation

Recital 50

Text proposed by the Commission Amendment (50) EAFRD should not provide support to investments that would harm the environment. Hence it is necessary to provide in this Regulation a number of exclusion rules, as well as the possibility to further develop these guarantees in delegated acts. Notably, the EAFRD should not finance investments in irrigation which do not contribute towards the achievement, or the preservation, of good status of the associated water body or bodies and investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles. (50) The EAFRD should give priority support to investments generating both economic and environmental benefits while not supporting investments that would harm the environment or which are not consistent with climate, environment, animal welfare and biodiversity objectives. Investments that generate both economic and environmental benefits should be emphasised . Hence it is necessary to provide in this Regulation a number of more specific exclusion rules, as well as the possibility to further develop these guarantees in delegated acts. Notably, the EAFRD should not finance investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles. Furthermore, the EAFRD should not cover investments in irrigation which do not contribute towards the achievement, or the preservation, of good status of the associated water body or bodies. Member States should ensure that authorities play an active role on ecology and management of forest fires in any afforestation or reforestation action and strengthen the role of soft preventive measures and land use management.

Amendment 47

Proposal for a regulation

Recital 51 a (new)

Text proposed by the Commission Amendment (51a) In order to enable the Union to be independent of vegetable protein imports, the CAP aims to promote, in line with Directive 2009/28/EC of the European Parliament and of the Council (1a) (Renewable Energy Directive), the use of biofuels obtained from the oilseed by-products of protein crops.

Amendment 858

Proposal for a regulation

Recital 51 b (new)

Text proposed by the Commission Amendment (51b) The EAGF and the EAFRD should not provide support to farmers whose activities include breeding of bulls for bullfighting. Such funding is a clear violation of the European Convention for the Protection of Animals Kept for Farming Purposes.

Amendment 798

Proposal for a regulation

Recital 52

Text proposed by the Commission Amendment (52) Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Program will contribute to mainstream climate action in the Union's policies and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives. Actions under the CAP are expected to contribute 40 % of the overall financial envelope of the CAP to climate objectives. Relevant actions will be identified during the Program's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes. (52) Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Program will contribute to mainstream climate action and phase out environmentally harmful subsidies in the Union's policies and to the achievement of an overall target of at least 30 % of the EU budget expenditures supporting climate objectives. Actions under the CAP should contribute at least 40 % of the overall financial envelope of the CAP to climate objectives. Relevant actions will be identified during the Program's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes.

Amendment 48

Proposal for a regulation

Recital 54

Text proposed by the Commission Amendment (54) To enhance the Union added value and to preserve a functioning agricultural internal market, as well as to pursue the above-mentioned general and specific objectives, Member States should not take decisions according to this Regulation in isolation but in the framework of a structured process that should materialise in a CAP Strategic Plan. Union top-down rules should lay down the specific EU -wide objectives of the CAP, the main types of interventions, the performance framework and the governance structure. Such a distribution of tasks is aimed at ensuring full correspondence between financial resources invested and results achieved. (54) To enhance the Union added value and to preserve a functioning agricultural internal market, as well as to pursue the above-mentioned general and specific objectives, Member States should not take decisions according to this Regulation in isolation but in the framework of a structured process that should materialise in a CAP Strategic Plan. Union top-down rules should lay down the specific Union -wide objectives of the CAP, the main types of interventions, the performance framework and the governance structure. Such a distribution of tasks is aimed at ensuring full correspondence between financial resources invested and results achieved.

Amendment 49

Proposal for a regulation

Recital 55

Text proposed by the Commission Amendment (55) In order to ensure a clear strategic nature of these CAP Strategic Plans, and to facilitate the links with other Union policies, and notably with established long-term national targets deriving from Union legislation or international agreements such as those related to climate change, forests, biodiversity, and water, it is appropriate that there should be one single CAP Strategic Plan per Member State. (55) In order to ensure a clear strategic nature of these CAP Strategic Plans, and to facilitate the links with other Union policies, and notably with established long-term national targets deriving from Union legislation or international agreements such as those related to climate change, forests, biodiversity, and water, it is appropriate that there should be one single CAP Strategic Plan per Member State. Taking due account of the administrative structure of the Member States, the Strategic Plan should, where appropriate, include regionalised interventions for rural development.

Amendment 50

Proposal for a regulation

Recital 55 a (new)

Text proposed by the Commission Amendment (55a) It is imperative that the CAP Strategic Plans have a clear, simple and unambiguous framework in order to avoid ‘gold plating’ of policy at the national, regional or local level.

Amendment 51

Proposal for a regulation

Recital 55 b (new)

Text proposed by the Commission Amendment (55b) The new delivery model should not call into question the integrity of the internal market or the historically European nature of the CAP, which should remain a truly common policy, ensuring a Union approach and a level playing field.

Amendment 730

Proposal for a regulation

Recital 55 c (new)

Text proposed by the Commission Amendment (55c) In accordance with Article 208 TFEU, the Union and Member States should ensure that development cooperation objectives are taken into account in all CAP interventions, and respect the right to food as well as the right to development. Member States should also ensure that CAP Strategic Plans contribute to the maximum extent possible to the timely achievement of the goals set in the 2030 Agenda for Sustainable Development and in the Paris Agreement, as well as of the objectives of the European Green Deal, the Union's environmental and climate commitments and applicable legislation adopted by the European Parliament and the Council on the basis of the Farm to Fork Strategy and the Biodiversity Strategy.

Amendment 52

Proposal for a regulation

Recital 56

Text proposed by the Commission Amendment (56) 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. (56) In the process of development of their CAP Strategic Plans, Member States should analyse their specific situation and needs, set targets that are realistic, linked to the achievement of the objectives of the CAP and design the interventions which will allow reaching these targets while providing certainty for the final beneficiaries, 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 order to ensure that the setting of targets by Member States and that the design of interventions is appropriate and maximises the contribution to the objectives of the CAP, and while the commonality of the policy is secured, it is necessary to base the strategy of the CAP Strategic Plans on a prior analysis of the local contexts and an assessment of needs in relation to the objectives of the CAP. In proceeding with CAP Strategic Plans, it is necessary to ensure the involvement of farmers and farmers' organisations.

Amendment 53

Proposal for a regulation

Recital 57

Text proposed by the Commission Amendment (57) In order to ensure that the setting of targets by Member States and that the design of interventions is appropriate and maximises the contribution to the objectives of the CAP, it is necessary to base the strategy of the CAP Strategic Plans on a prior analysis of the local contexts and an assessment of needs in relation to the objectives of the CAP. (57) It is also important that the CAP strategic plans can adequately reflect changes in Member States’ conditions, structures (both internal and external) and market situations and that they can, therefore, be adjusted over time to reflect them.

Amendment 54

Proposal for a regulation

Recital 58

Text proposed by the Commission Amendment (58) The CAP Strategic Plans should aim to ensure enhanced coherence across the multiple tools of the CAP, since it should cover types of interventions in the form of direct payments, sectoral types of interventions and types of interventions for rural development. They should also ensure and demonstrate the alignment and appropriateness of the choices made by Member States to the Union priorities and objectives. It is therefore appropriate that they contain a result-oriented intervention strategy structured around the specific objectives of the CAP, including quantified targets in relation to these objectives. In order to allow their monitoring on an annual basis, it is appropriate that these targets are based on result indicators. (58) The CAP Strategic Plans should aim to ensure enhanced coherence across the multiple tools of the CAP, since it should cover types of interventions in the form of direct payments, sectoral types of interventions and types of interventions for rural development. They should also ensure and demonstrate the alignment and appropriateness of the choices made by Member States to the Union priorities and objectives. It is therefore appropriate that they contain a result-oriented intervention strategy structured around the specific objectives of the CAP, including quantified targets in relation to these objectives. In order to allow their monitoring it is appropriate that these targets are based on result indicators.

Amendment 800

Proposal for a regulation

Recital 58 a (new)

Text proposed by the Commission Amendment (58a) The existing knowledge base, in terms of the quantity and quality of available information, varies considerably for the purposes of monitoring the specific objectives set out in Article 6 of this Regulation. For some specific objectives, in particular for monitoring biodiversity, the knowledge base is currently weak or insufficiently adapted for the purposes of creating robust impact indicators, such as for pollinators and crop biodiversity. Specific objectives and indicators set for the Union as a whole in Article 6 and Annex I respectively should be based on a shared or comparable knowledge base and methodologies in all Member States. The Commission should identify areas where knowledge gaps exist or where the knowledge base is insufficiently adapted for the purposes of monitoring the impact of the CAP. It should use the Union budget to provide a common response to knowledge-related and monitoring obstacles related to all Article 6 specific objectives and indicators. It should draw up a report on this issue and make its findings public.

Amendment 801

Proposal for a regulation

Recital 59

Text proposed by the Commission Amendment (59) The strategy should also highlight complementarity both between CAP tools and with the other Union policies. In particular, each CAP Strategic Plan should take account of environmental and climate legislation where appropriate , and national plans emanating from this legislation should be described as part of the analysis of the current situation (‘SWOT analysis’). It is appropriate to list the legislative instruments which should specifically be referred to in the CAP Strategic Plan. (59) The strategy should also highlight complementarity both between CAP tools and with other Union policies including cohesion . In particular, each CAP Strategic Plan should take account of environmental and climate legislation , the Union’s commitments to Policy Coherence for Development , and national plans emanating from this legislation should be described as part of the analysis of the current situation (‘SWOT analysis’). It is appropriate to list the legislative instruments which should specifically be referred to in the CAP Strategic Plan.

Amendment 55

Proposal for a regulation

Recital 59 a (new)

Text proposed by the Commission Amendment (59a) Since the income support scheme plays a major role in guaranteeing the economic viability of farms, it is appropriate to take into account the social impacts, which the CAP has on providing jobs in rural areas. For that reason the Member States should also take into account in the planning of their Strategic Plans the employment impact which an establishment will have on a specific area. Measures and activities which create more employment opportunities should be given priority when drafting and implementing the respective policy tools.

Amendment 56

Proposal for a regulation

Recital 60

Text proposed by the Commission Amendment (60) Considering that flexibility should be accorded to Member States as regards the choice of delegating part of the implementation of the CAP Strategic Plan at regional level on the basis of a national framework, in order to facilitate co-ordination among the regions in addressing nation-wide challenges, it is appropriate that the CAP Strategic Plans provide a description of the interplay between national and regional interventions. (60) Considering that flexibility should be accorded to Member States as regards the choice of delegating part of the design and implementation of