WRITTEN QUESTION E-0549/97 by Ulf Holm (V) to the Commission (21 February 1997)

Subject: Threat to the environment posed by the EU's agricultural policy

According to forecasts in Sweden, the EU's agricultural policy will result in a thorough restructuring of Swedish agriculture. The main cause lies in all the various subsidies for which farmers have been eligible since Sweden acceded to the EU. These comprise various farm subsidies, price support, area support, environmental subsidies, livestock subsidies etc. The subsidies determine what is profitable for farmers, irrespective of whether it is desirable in other respects. Many of them also run directly counter to people's demands and wishes for environmental protection, nature conservation, management of resources in a sustainable society in accordance with Agenda 21 and the world's food requirements.

Is it right that all manner of subsidies should be paid which can have the effect, inter alia, of ruining farmland and which directly counteract the work on Agenda 21?

How will the Commission alter its approach so as to reduce farm subsidies?

How will the Commission overhaul farm subsidies so as to render possible ecologically sustainable agriculture?

Answer given by Mr Fischler on behalf of the Commission (11 April 1997)

The common agricultural policy (CAP), from its outset focused on efficient and stable production, food security and the livelihood of the rural population, and often less attention was given to the negative effects in terms of pollution or degradation of biotopes. The 1992 reform of the CAP reduced the undesirable results of the previous approach by bringing balance to agriculture markets and taking environmental protection requirements into account. The reform reduced price supports and decoupled income support from the price system. This reduces the incentives for intensive production and for the use of chemical fertilisers and plant protection products.

The CAP reform also introduced the agri-environmental scheme (Regulation (EEC) No 2078/92) ((OJ L 215, 30.7.1992. )) as an accompanying measure to promote farming activities that benefit the environment. It is voluntary for farmers, managed by Member States or regions and co-financed by the Community. This approach enables account to be taken of site specific conditions. At the end of 1996, 117 agri-environmental programmes had been approved. They comprise, for example, the promotion of less intensive and more environmentally sound production methods, reduction of livestock density, 20 years set-aside for ecological purposes, nature conservation and countryside stewardship activities.

Since 1992 there has been further progress on integrating environmental aims into the common market organisation for agricultural products. The market organisation for fruit and vegetables was recently changed to a more market-oriented regime, which involves the progressive elimination of structural surpluses and a new system of managing surpluses, while also taking environmental concerns into account. New funding will promote environmentally friendly production techniques. The process of reforming the markets is currently continuing with proposals for reform in other sectors.

The environment is also a major component of the Community's rural development policy. In addition to the possibility of funding measures specifically designed to promote environmental enhancement, all rural development programmes must take due account of the environmental impact.

Agriculture is one of the target sectors of the Fifth environmental action programme which sets out long term objectives, medium term targets and measures in relation to sustainable agriculture. The objectives include the maintenance of natural processes, the decrease of chemical inputs and the management of the rural environment with a view to maintaining biodiversity and natural habitats. The programme is currently under review and the Commission has proposed to the Council and Parliament to strengthen its implementation and further improve the integration between the market, rural development and the environment.

Agriculture has in recent years been subject to a series of adjustments which have reduced price support and have improved the integration of environmental concerns into the CAP. A further development should be expected, completing the 1992 reforms where they have not yet been introduced and deepening them where appropriate. The instrument of price support is thereby likely to decrease in importance. This will also help farmers to take advantage of new opportunities on the world market. However, market liberalisation and the elimination of support do not automatically improve the quality of the rural environment. As long as environmental costs are not fully internalised and do not reflect the heterogeneity of ecological situations, market mechanisms alone will not lead to an optimal allocation of resources, neither to the sustainable agriculture required in Agenda 21. Accompanying policies are needed to ensure that farming takes the environment into account and remains economically viable and socially acceptable.