WRITTEN QUESTION E-0668/03

by Giacomo Santini (PPE-DE) to the Commission

(6 March 2003)

Subject: Young farmers ignored under the new CAP

One voice has been missing from the passionate debate surrounding the reform of the common agricultural policy that of young farmers. Nor was there any tangible reference in the Commission document to what will become of these farmers, their problems and their expectations.

We have therefore not moved on from articles 7 and 8 of Regulation (EC) No 1257/1999(1), which envisage higher percentages for the EAGGF premium, so that instead of the ceiling of 40 % of the volume of investments for ordinary holdings, the figure rises to 45 % for young farmers and 55 % for young farmers in disadvantaged areas.

Article 8 envisages a maximum amount of EUR 25 000 of setting-up aid for young farmers. This is not much as an incentive for a young person to set up a farm, faced with the forthcoming major reforms.

1. Can the Commission therefore say why the draft CAP reform does not set aside a specific chapter devoted to young farmers?

2. Whether it is possible to incorporate in the draft reform an amendment to update Article 8 of Regulation (EC) No 1257/1999, proposing at least a 100 % increase in the setting-up aid, raising it to EUR 50 000?

3. Whether it is possible to incorporate in the draft reform an amendment to increase aid as a percentage of the volume of investment from 45 % and 55 % to 65 % and 75 % respectively for young farmers in lowland and mountain areas?

4. Whether it is possible to incorporate in the draft reform an amendment to suspend the system of State aids as regards direct aid to young farmers from the Member States and regional authorities?

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

Answer given by Mr Fischler on behalf of the Commission

(3 April 2003)

1. Chapter II of Regulation (EC) No 1257/1999(1) is concerned solely with young farmers and the Commission must point out that substantial improvements have already been made under Agenda 2000.

First, the maximum eligible amount of both the setting-up premium and the interest subsidy were raised by 66 % from EUR 15 000 to EUR 25 000. Second, the maximum aid rate for farm investments can be raised by 5 percentage points for young farmers' investments during the first five years following establishment on the farm. Third, the maximum eligible early retirement aid, a measure indirectly benefiting young farmers by encouraging release of agricultural land, was raised by 50 % from EUR 10 000 to EUR 15 000 and Member States have the option of linking their use of this measure to the establishment of young farmers.

2. Thus there has been a considerable increase in aid from the previous to the present programming period. Moreover, in the case of authorised rural development measures, Article 52 of Regulation (EC) No 1257/1999 allows the Member States to provide additional financing which they must notify to the Commission for approval by including it in the rural development programmes.

3. Article 51(2) of Regulation (EC) No 1257/1999 allows aid for certain types of farm investment to exceed the percentages set earlier in the Regulation. Thus Member States provide further finance by including in their development plans higher aid rates for young farmers for certain types of investment.

4. The Commission does not envisage any suspension of the system of State aid rules, which would result in distortion of competition between farmers in different Member States.

(1) Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations OJ L 160, 26.6.1999.