Council Conclusions of 17 December 2003 on risk management in agriculture
Date: 2003-12-17
Institutions: Council of the European Union
Subjects: environmental protection, natural hazard, reform of the CAP, rural development

C 34/2

EN

Official Journal of the European Union

7.2.2004

COUNCIL CONCLUSIONS

of 17 December 2003

on risk management in agriculture

(2004/C 34/02)

Whereas:

The CAP reform decided in Luxembourg in June 2003 will
provide a modified system of
to
farmers, decoupled from production,
that should ensure a
stable basic income to farmers. However, the overall strategy
the agricultural sector,
of
together with the next steps towards liberalisation of agri-
cultural trade, may increase exposure to price risks.

improved market orientation of

farm income support

Furthermore, agricultural production is particularly vulnerable
to natural risks, related either to climate or to animal health,
that can jeopardise the economic sustainability of agricultural
holdings.

As a consequence of economic development and the growing
concern about environmental and food safety issues, agri-
cultural activity in the EU faces additional uncertainties
which go beyond traditional natural risks.

The Commission provided a first analysis of risk management
tools for EU agriculture in January 2001, which was discussed
under
the Swedish Presidency by the competent Council
bodies.

The Presidency conclusions on agricultural insurance as a risk
management tool in arable and livestock farming, based on a
memorandum submitted by the Spanish Presidency on 18
March 2002, and the International Conference on ‘Agricultural
insurance and income guarantees’, held in Madrid on 13 and
14 May 2002, focused on the potential role of agricultural
insurance.

A Greek Presidency memorandum on natural
risks and
insurance in the agricultural sector was submitted to the
Council on 7 May 2003 and a seminar was held in Thessa-
loniki on 6 June 2003 to examine possible responses to natural
disasters in the agricultural sector.

reform regulations were

In its statement in the Council minutes of 29 September 2003,
the
when the CAP
Commission announced that
specific
measures to address risks, crises and national disasters in agri-
culture and present a report, accompanied by appropriate
proposals, to the Council before the end of 2004.

it would examine

adopted,

The Council accordingly invites the Commission:

In order

to facilitate

(1) to continue to lead the debate on risk management tools in
exchange of
agriculture.
information and views between Member States,
the
Commission report scheduled for the end of 2004 should
risk
provide
management
tools available in Member States, covering
the current EU-15 and the accession countries;

an updated inventory of

the different

the

(2) to examine the advantages and disadvantages of different
risk management options in the context of Common
Market Organisations and the new generation of rural
development programmes. Notwithstanding the agricultural
sector's own responsibility, possible new instruments to
if appropriate, current measures should be taken
replace,
into account and examined on the understanding that
distortions of competition must be avoided, WTO rules
must be observed and the financing of any new measures
must be in keeping with the financial commitments already
in place;

(3) to assess the opportunities provided by the Community
guidelines for State aids in the agricultural sector for the
development of national
in
accordance with the principle of subsidiarity and the
common market and, if necessary, to suggest adaptations.

risk management

systems