COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Future of Food and Farming
Date: 2017-11-29
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: agricultural trade, aid to agriculture, climate change policy, common agricultural policy, environmental protection, farmer, farming sector, job creation, research and development, rural development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 29.11.2017  COM(2017) 713 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Future of Food and Farming  
 
 
The Future of Food and Farming  

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contents 

1.  A NEW CONTEXT .................................................................................................... 3 

2.  TOWARDS A NEW DELIVERY MODEL AND A SIMPLER CAP ....................... 9 

3.  A SMARTER, MODERN AND SUSTAINABLE CAP .......................................... 11 

3.1.  Using research and innovation to better link what we know to what we 

grow ................................................................................................................. 12 

3.2.  Fostering a smart and resilient agricultural sector ........................................... 14 

3.2.1.  A fair income support to help farmers to make a living .................... 14 

3.2.2. 

Investing to improve farmers' market reward .................................... 16 

3.2.3.  Risk Management .............................................................................. 17 

3.3.  Bolstering  environmental  care  and  climate  action  and  contributing  to 

the achievement of EU environmental and climate objectives ....................... 18 

3.4.  Strengthening the socio-economic fabric of rural areas .................................. 20 

3.4.1.  Growth and jobs in rural areas ........................................................... 20 

3.4.2.  Attracting new farmers ...................................................................... 22 

3.5.  Addressing  citizens'  concerns  regarding  sustainable  agricultural 

production, including health, nutrition, food waste and animal welfare ......... 23 

4.  THE GLOBAL DIMENSION OF THE CAP ........................................................... 25 

4.1.  Trade ................................................................................................................ 25 

4.2.  Migration ......................................................................................................... 26 

2 

 
 
 
 
 
 
 
 
 
1.  A NEW CONTEXT  

The EU's farm sector and rural areas are major players in terms of the Union's well-being 
and  its  future.  EU  agriculture  is  one  of  the  world's  leading  producers  of  food,  and 
guarantees  food  security  for  over  500  million  European  citizens.  The  EU's  farmers  are 
also the first stewards of the natural environment, as they care for the natural resources 
of soil, water, air and biodiversity on  48% of the EU's land  (foresters a further 36%) 
and  provide  essential  carbon  sinks  and  the  supply  of  renewable  resources  for 
industry  and  energy.  They  also  depend  directly  on  these  natural  resources.  Large 
numbers  of  jobs  depend  on  farming,  either  within  the  sector  itself  (which  provides 
regular  work  for  22  million  persons)  or  within  the  wider  food  sector  (farming,  food 
processing and related retail and services together provide around 44 million jobs). The 
EU's rural areas as a whole are home to  55% of its citizens1 while serving as major 
bases for employment, recreation and tourism. 

Figure 1 

1 Covering predominantly rural and intermediate areas (OECD definition). 

3 

 
 
                                                 
None  of  these  benefits  can  however  be  taken  for  granted.  Unlike  most  other  economic 
sectors,  farming  is  strongly  affected  by  the  weather;  it  is  also  frequently  tested  by 
volatile prices, natural disasters, pests and diseases – with the result that, every year, at 
least 20% of farmers lose more than 30% of their income compared with the average of 
the  last  three  years.  At  the  same  time  pressure  on  natural  resources  is  still  clearly 
present partly as a result of some farming activities. Climate change threatens to make 
all  of  the  above-mentioned  problems  weigh  more  heavily.  The  Common  Agricultural 
Policy (CAP) should therefore lead a transition towards a more sustainable agriculture. 

The CAP enabled the development of the most integrated single market. It is thanks to 
the CAP that the EU farm sector is able to respond to citizens' demands regarding food 
security, safety, quality and sustainability. However, at the same time the sector faces the 
challenges of low profitability - due inter alia to the EU's high production standards, the 
high costs of production factors and the fragmented structure of the primary sector. The 
sector now competes at world market prices in most sectors, leads the field in terms of 
food  product  diversity  and  quality  and  achieves  the  globe's  highest  agri-food  exports 
(worth EUR 131 billion in 20162)  

Solid performance but further work to be done 

Direct  payments  currently  shore  up  the  resilience  of  7  million  farms,  covering  90%  of 
farmed  land.  While  they  make  up  around  46%  of  the  income  of  the  EU  farming 
community,  the  proportion  is  much  higher  in  many  regions  and  sectors.  They  thereby 
provide  relative  income  stability  to  farmers  facing  significant  price  and  production 
volatility - which helps to keep the EU's vital high-quality food production base spread 
around  the  Union3.  Their  impact  is  supplemented  by  market  instruments.  Areas  with 
Natural Constraints are also the object of specific support. 

Rural development policy makes a substantial contribution to the farm economy and vital 
rural  livelihoods  in  various  ways.  It  supports  investments;  knowledge-building;  supply 
chain  organisation;  environmental  protection  and  climate  action.  Rural  development 
programmes  in  2014-2020  build  on  this  and  widens  provision  for  innovation  and  risk 
management.  The  creation  of  the  European  Innovation  Partnership  for  Agricultural 
Productivity and Sustainability (EIP-AGRI) gave an impetus to knowledge creation and 
sharing.  However,  important  efforts  still  need  to  be  done  to  facilitate  the  access  of 
farmers to knowledge4. 

2   See https://ec.europa.eu/agriculture/trade-analysis/statistics_en  

3   Ecorys et al. (2016) Mapping and analysis of the implementation of the CAP, p 76-94 

4   See Evaluation study of the implementation of the European Innovation Partnership (EIP), November 

2016: https://ec.europa.eu/agriculture/external-studies/2016-eip_en 

4 

 
 
                                                 
 
There are lessons to be learned from the public consultation carried out in the first half of 
2017  on  "modernising  and  simplifying  the  CAP"5  which  confirmed  a  widespread 
consensus that the current CAP tools successfully addresses current challenges to some 
extent only. This covers also environmental and climate challenges, where a majority of 
farmers and other stakeholders consider that the CAP should do more. At the same time, 
the excess of bureaucracy has been highlighted as a key obstacle preventing the current 
policy from successfully delivering on its objectives.  

Figure 2 

Land-based  measures  are  pivotal  to  achieving  the  environmental  and  climate-related 
goals  of  the  EU,  and  farmers  are  the  primary  economic  agents  in  delivering  these 
important societal goals. In this context, we need to look at direct payments in order to 
ensure  that  a  large  portion  of  the  EU's  actively  farmed  area  is  managed  with  practices 
beneficial  for  the  environment.  The  current  area-based  Rural  Development  payments 
build  on  this  foundation.  Partly  thanks  to  the  CAP,  organic  farming  expanded 
significantly, to cover 6% of UAA in 2015 compared to 2% in 2000.  

5 See https://ec.europa.eu/agriculture/consultations/cap-modernising/2017_en 

5 

 
 
 
                                                 
 
 The  implementation  of  “greening6”  is  qualified  as  sometimes  less  ambitious  than 
intended,  and  is  identified  in  the  public  consultation  as  the  most  burdensome  and 
complex  element  of  the  CAP  which  limits  its  effectiveness.  Climate  change  has  in  the 
meantime become an even more urgent priority, with important costs to be faced by the 
farming community in the future.7  

This view has also been highlighted by the REFIT Platform, which has put the focus on 
the  excessive  administrative  burden  of  the  current  greening  measures,  the  control  and 
audit  system  and  the  growing  overlaps  between  pillar  I  and  II8.  As  indicated  by  the 
REFIT Platform, there is a need to reduce the regulatory burden of the CAP and improve 
its  value  for  money  while  ensuring  the  achievement  of  the  objectives  and  increase  its 
integration with other policy areas.  

A  first  report  on the  implementation  of  the  current  common  monitoring  and  evaluation 
framework  of  the  CAP,  including  first  results  on  the  performance,  will  be  presented  to 
the  European  Parliament  and  the  Council  in  2018.  The  Impact  Assessment  that  will 
underpin  the Commission proposal for the post-2020 Common Agricultural Policy will 
take  into  account  all  available  evidence  on  the  performance  of  the  policy  so  far 
(including  results  of  evaluations  and  input  from  the  REFIT  Platform)  and  will  use  this 
information when analysing specific solutions for the future. 

staff  working  document:  Review  of  greening  after  one  year 

6  European  Commission 
https://ec.europa.eu/agriculture/sites/agriculture/files/direct-support/pdf/2016-staff-working-document-
greening_en.pdf;  also  Report  from  the  Commission  to  the  European  Parliament  and  the  Council  on  the 
implementation  of  the  ecological  focus  area  obligation  under  the  green  direct  payment  scheme 
(COM/2017/0152 final) of 29.3.2017 

7 See Ecampa2 study (2016) with the most updated assessment of greenhouse gas mitigation policy options 
for EU agriculture:http://publications.jrc.ec.europa.eu/repository/bitstream/JRC101396/jrc101396_ecampa
2_final_report.pdf 

8  REFIT  Platform  Opinions  on  "Cross  Compliance",  "Greening",  "Overlaps  between  pillar  I  and  II", 
"Control  and  Audit",  "Rural  Development  support"  and  "EU  legislation  on  the  Farm  subsidies  reform". 
Available  at:  https://ec.europa.eu/info/law/law-making-process/overview-law-making-process/evaluating-
and-improving-existing-laws/reducing-burdens-and-simplifying-law/refit-platform/refit-platform-
recommendations_en 

6 

 
 
 
 
                                                 
 
 
A future- proof CAP 

While  addressing  the  CAP  Treaty  objectives,  the  CAP  has  kept  evolving,  increasing 
the  EU  added  value.    It  has  also  substantially  increased  its  emphasis  on  the 
environment,  climate  and  the  wider  rural  context  in  which  farming  operates.  This 
enabled  the  sector  to  increase  its  productivity  by  nearly  9%  since  2005  while  cutting 
greenhouse gas (GHG) emissions by 24% since 1990 and reducing fertiliser use with a 
positive  impact  on  water  quality.  However,  in  the  absence  of  stronger  and  more 
ambitious  policy  support  it  is  unlikely  that  EU  agricultural  emissions  will  continue  to 
decrease  at  the  same  pace.  The  CAP  must  continue  stepping  up  its  response  to  these 
challenges and it also shall play an essential role in realising the Juncker priorities in full 
coherence with other policies, especially: 

  boosting quality employment, growth and investment; 

  harnessing  the  potential  of  the  Energy  Union,  the  circular  economy  and  the  bio-
economy  while  bolstering  environmental  care  and  fighting  and  adapting  to 
climate change; 

  bringing research and innovation out of the labs and onto the fields and markets; 

  fully connecting farmers and the countryside to the digital economy; and 

  contributing to the European Commission's agenda on migration. 

At  the  same  time,  the  EU  is  strongly  committed  to  action  on  the  COP21  Paris 
Agreement and the United Nations Sustainable Development Goals (SDGs). Notably, 
the CAP underpins the policies spelled out in the 2030 Climate and Energy framework, 
which  calls  upon  the  farming  sector  to  contribute  to  the  economy-wide  emission 
reduction  target  of  -40%  by  2030  and  EU  Adaptation  strategy.  European  farming  also 
needs  to  step  up  its  contribution  towards  the  EU  environmental  objectives.  These 
commitments  cannot  be  met  without  farmers,  foresters  and  other  rural  actors  who 
manage  over  half  of  the  EU's  land,  are  key  users  and  custodians  of  the  related  natural 
resources and provide large carbon sinks as well as renewable resources for industry and 
energy.  This  is  why  a  modernised  CAP  should  enhance  its  EU  added  value  by 
reflecting  a  higher  level  of  environmental  and  climate  ambition,  and  address 
citizens' concerns regarding sustainable agricultural production.  

The Cork 2.0 Declaration of 2016, A Better Life in Rural Areas, gave voice to ambitious 
aspirations  for  the  future  success  of  the  EU's  agriculture  and  countryside  and  the 
contributions they could make to society as a whole. It presents an agenda for reforming 
the CAP to improve its delivery and bring it up to date to the current day challenges In 
particular  there  is  a  need  to  invest  in  skills,  public  services,  infrastructure  and  capacity 
building in order to generate vibrant rural communities.  

7 

 
 
Figure 3  

The  public  consultation  underlined  the  importance  of  the  three  dimensions  of 
sustainability (economic, environmental and social) and linked them to a broader need to 
modernise and simplify the policy.  

The  Commission's  White  Paper  on  the  Future  of  Europe  of  1  March  2017  set  in 
motion a wide-ranging debate on tomorrow's EU, calling on the Union and its Member 
States to interact better with citizens, be more accountable to them and deliver faster and 
better on what has been collectively agreed, such as the European Pillar of Social Rights. 
The  Commission's  Reflection  paper  on  the  Future  of  EU  Finances  of  28  June  2017 
stimulates further this debate, setting out options and scenarios for the future direction of 
the EU budget, including among other options a degree of co-financing of the CAP and 
its  implications.  As  recalled  in  the  Reflection  Paper,  the  EU  budget  should  continue 
dealing with current trends that will shape the EU in the coming years. There are also a 
number of new challenges in which the EU budget will need to do  more than today. In 
this context, all existing instruments including the CAP will need to be looked at. Hence, 
this Communication does neither pre-empt the outcome of this debate nor the proposals 
for the next multiannual financial framework (MFF).  

The  Reflection  Paper  on  the  future  of  EU  finances  called  for  a  shift  towards  new, 
sustainable growth that combine economic, social and environmental considerations in a 
holistic and integrated way and stronger focus on the provision of public goods.  

8 

 
 
 
This is the backdrop against which the CAP must take the next steps in its evolution  – 
modernising and simplifying, and working hand in hand with other EU policies – to meet 
a  wide  range  of  pressing  challenges  and  bring  out  the  very  best  from  the  Union's  farm 
sector and rural  areas, with  a greater focus on high  standards and  actual results, and to 
support  farmers  in  anticipating  and  dealing  with  future  relevant  challenges  and 
developments. 

2.  TOWARDS A NEW DELIVERY MODEL AND A SIMPLER CAP 

The CAP needs to evolve in various ways and sharpen its responses to the challenges and 
opportunities as they manifest themselves at EU, national, regional, local and farm levels. 
This also includes for the CAP to streamline its governance and improve its delivery on 
the EU objectives, and to significantly decrease bureaucracy and administrative burden.  

The  current  CAP  delivery  system  relies  on  detailed  requirements  at  EU  level,  and 
features  tight  controls,  penalties  and  audit  arrangements.  These  rules  are  often  very 
prescriptive, down to farm level. In the Union's highly diversified farming and climatic 
environment, however, neither top-down nor one-size-fits-all approaches are suitable to 
delivering the desired results and EU added value.  

In  the  delivery  model  of  the  future  CAP,  the  Union  should  set  the  basic  policy 
parameters  (objectives  of  the  CAP,  broad  types  of  intervention,  basic  requirements), 
while Member States should bear greater responsibility  and be more accountable as 
to  how  they  meet  the  objectives  and  achieve  agreed  targets.  The  CAP  objectives 
would fulfil the EU Treaty obligations but also the already agreed objectives and targets 
on for instance the environment, climate change (COP 21), and a number of the SDGs. 
When  preparing  CAP  strategic  plans,  the  Member  States  will  take  into  account  their 
planning  tools  adopted  emanating  from  EU  environmental  and  climate  legislation  and 
policies.9 At the same time, Member States would be accountable for providing credible 
performance monitoring and reporting, underpinning the assurance of the budget. 

Greater  subsidiarity  would  make  it possible  to  better  take  into  account  local  conditions 
and  needs,  against  such  objectives  and  targets.  Member  States  would  be  in  charge  of 
tailoring  CAP  interventions  to  maximise  their  contribution  to  EU  objectives.  While 
maintaining  current  governance  structures  –  that  must  continue  to  ensure  an  effective 
monitoring  and  enforcement  of  the  attainment  of  all  policy  objectives  -  the  Member 
States  would  also  have  a  greater  say  in  designing  the  compliance  and  control 
framework applicable to beneficiaries (including controls and penalties).  

9  Such  as  the  Management  Plans  and  Prioritised  Action  Frameworks  for  Natura  2000,  River  Basin 

Management Plan, Air Quality and Air Pollution Programmes, Biodiversity Strategies. 

9 

 
 
                                                 
To  enhance  EU  added  value  and  to  preserve  a  functioning  agricultural  internal  market 
Member  States  would  take  their  decisions  not  in  isolation,  but  in  the  framework  of  a 
structured  process  that  would  materialise  in  establishing  a  CAP  strategic  plan,  which 
would  cover  interventions  in  both  pillar  I  and  pillar  II,  thus  ensuring  policy  coherence 
across the future CAP and with other policies. The delivery model will thus continue to 
ensure  a  level  playing  field,  preserving  the  common  nature  and  the  two  pillars  of  the 
policy. The Commission would assess and approve such plans with a view to maximising 
the contribution of the CAP towards the EU priorities and objectives and the achievement 
of  Member  States'  climate  and  energy  targets.  This  is  important  to  ensure  the 
maintenance  of  a  common  approach  to  the  delivery  of  environment  and  climate 
objectives across Member States. Increased ambition is the only viable policy option in 
this regard. 

The planning process should be shaped in a much simpler way, remaining clearly below 
the  levels  of  complexity  exemplified  by  the  current  rural  development  programming. 
This means in particular that prescriptive compliance elements such as measures' details 
and  eligibility  rules  at  the  level  of  EU  legislation  should  be  eliminated.  Such 
simplification  would  also  favour  integrated  and  innovative  approaches  and  render  the 
policy framework more adaptive and innovation friendly. 

This  means  the  CAP  and  the  Member  States  plans  should  focus  above  all  on  the 
objectives  and  expected  results  while  leaving  sufficient  room  for  Member  States  and 
regions to address their specificities. In line with the logic of the Commission's "budget 
focused  on  results"  approach,  a  future  delivery  system  should  thus  be  more  result-
driven,  boost  subsidiarity  by  giving  Member  States  a  much  greater  role  in  rolling  out 
CAP  schemes,  pursue  agreed  realistic  and  adequate  targets,  and  help  reducing  the 
EU-related  administrative  burden  for  beneficiaries.  In  such  a  context  simplified  cost 
options  and  modern  technologies  offer  huge  opportunities  to  reduce  this  burden,  in 
particular  as  regards  controls.  Both  farmers  and  citizens  should  be  enabled  to  benefit 
from such advances with a less prescriptive framework. 

In this way, as proclaimed by the Cork 2.0 Declaration, the architecture of the CAP as a 
whole  would  provide  for  targeting  interventions  to  well-defined  economic,  social  and 
environmental  objectives  while  reflecting  the  needs  and  aspirations  of  the  territories 
concerned. 

Another crucial function of the Commission would of course consist in supervising the 
delivery  on  results  and  the  respect  of  basic  EU  rules  and  international  commitments  in 
the framework of a well-designed audit and assurance system. To this end the assurance 
process  would  need  to  be  adapted  to  the  requirements  of  a  result-driven  policy  design 
including  the  development  and  application  of  solid  and  measurable  indicators  and  of  a 
credible performance monitoring and reporting.  

10 

 
 
3.  A SMARTER, MODERN AND SUSTAINABLE CAP 

European  citizens  should  continue  to  have  access  to  safe,  high  quality,  affordable, 
nutritious and diverse food. The way this food is produced and marketed should adapt to 
citizens' expectation, in particular concerning the impact on their health, the environment 
and  the  climate.  To  ensure  this  in  a  context  of  growing  world  population,  increased 
environmental  pressure  and  climate  change,  the  CAP  has  to  continue  evolving, 
maintaining its market orientation and its support to the EU family farm model across all 
the  regions  of  the  Union.  Similarly,  the  CAP  needs  to  support  and  be  compatible  with 
efforts that address the root causes of migration towards the EU.  

Figure 4 

Fulfilling  these  goals  will  be  made  possible  by  building  on  what  the  CAP  has  already 
achieved  through  its  policy  objectives,  in  a  new  economic,  climate,  environmental, 
social, technological, industrial and political context. The section below sets out the main 
objectives of the future CAP:  

 
 

 

to foster a smart and resilient agricultural sector; 
to bolster environmental care and climate action and to contribute to the 
environmental and climate objectives of the EU; 
to strengthening the socio-economic fabric of rural areas. 

To  fulfil  these  objectives  the  agricultural  sector  and  the  EU  rural  areas  will  need  to  be 
better linked to human capital development and research and support for innovation will 
need to be stepped up. 

11 

 
 
 
The  future  CAP  will  also  need  to  continue  to  address  societal  expectations  regarding 
sustainable  food  production,  in  particular  concerning  food  safety,  food  quality, 
environmental and animal welfare standards.  

3.1.  Using  research  and  innovation  to  better  link  what  we  know  to  what  we 

grow 

Innovations in various fields (agronomy such as nature based solutions, breeding, vertical 
farming,  zootechnics,  biological,  technological,  digital,  organisational  and  product 
related)  are  within  reach  and  can  serve  the  multi-functionality  of  EU  agricultural  and 
food systems. Research and innovation are part of the foundation of progress concerning 
all  the  challenges  which  confront  the  EU's  farm  sector  and  rural  areas:  economic, 
environmental  and  social.  The  needs  and  contributions  of  rural  areas  should  be  clearly 
reflected on the research agenda of the European Union and the future CAP will need to 
enhance  even  more  synergies  with  the  Research  and  Innovation  Policy  in  fostering 
innovation.  

Technological  development  and  digitisation  make  possible  big  leaps  in  resource 
efficiency  enhancing  an  environment  and  climate  smart  agriculture,  which  reduces  the 
environment-/climate impact of farming, increase resilience and soil health and decrease 
costs  for  farmers.  However,  the  uptake  of  new  technologies  in  farming  remains  below 
expectations  and  unevenly  spread  throughout  the  EU,  and  there  is  a  particular  need  to 
address small and medium-sized farms' access to technology.  

Not  only  technology  but  also  access  to  sound,  relevant  and  new  knowledge  is  very 
patchy around the Union.  This impedes the performance of certain CAP instruments as 
well as the farm sector's overall competitiveness and development potential. By contrast, 
the  CAP's  capacity  to  increase  the  flow  of  knowledge  between  partners  from  different 
parts of the EU offers strong added value as it will save costs, increase the impact of EU 
funding and speed up innovation in the different parts of the EU. 

12 

 
 
Figure 5 

Support for knowledge, innovation and technology will be crucial to future-proofing 
the CAP. Schemes that aim at enhancing economic, social or environmental performance 
as  well  as  climate  change  adaptation  and  mitigation  will  be  linked  to  the  advisory 
services providing knowledge, advice, skills and innovation. 

for  Agricultural  Productivity  and 
The  European  Innovation  Partnership 
Sustainability  (EIP-AGRI)  and  the  European  Innovation  Partnership  on  Water  have 
proven  their  value  in  mobilising  the  agricultural  sector  for  innovation.  It  has  funded 
multi-participant pilot projects and is networking across Europe to make new knowledge 
generally  available.  Its  success  depends  on  the  combined  performance  of  advisors, 
agricultural training and educational systems, researchers and farmer organisations often 
referred  to  as  the  Agricultural  Knowledge  and  Innovation  System  (AKIS)  –  which 
operates  very  differently  from  one  Member  States  to  another.  The  role  of  the  farm 
advisor  stands  out  as  particularly  important.  A  modern  CAP  should  support  the 
strengthening of farm advisory services within the AKIS systems. This should become a 
condition  for  the  approval  of  CAP  Strategic  Plans.  This  should  be  facilitated  by 
strengthening  the  support  for  peer-to-peer  exchange,  networking  and  cooperation 
amongst  farmers  including  through  Producer  Organisations  ("POs"),  as  these  can  be 
important  vehicles  of  knowledge  sharing,  innovation  as  well  as  cost  savings  for  the 
farmers on a very regular basis. 

13 

 
 
 
 
 
3.2.  Fostering a smart and resilient agricultural sector 

3.2.1.  A fair income support to help farmers to make a living  

As  emphasised  in  the  Reflection  paper  on  the  future  of  EU  finances,  direct  payments 
partially fill the gap between agricultural income and income in other economic sectors. 
They provide an important income safety net, ensuring there is agricultural activity in all 
parts of the Union including in areas with natural constraints (which also receive income 
payments  under  Rural  Development  Policy)  with  the  various  economic,  environmental 
and  social  associated  benefits,  including  the  delivery  of  public  goods.  Therefore,  direct 
payments remain an essential part of the CAP in line with its EU Treaty obligations. 

FARMERS' INCOME IS STILL LAGGING 
BEHIND SALARIES IN THE WHOLE ECONOMY 

EUR/ Full time worker 
80.000

Average CAP support

Average farmer income (without CAP support)

Average gross wages and salaries in the total
economy (in current prices)

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L
P

T
L

V
L

O
R

G
B

R
H

Source: DG AGRI based on DG AGRI  and Eurostat data, 2011-2013  
Average CAP support = operating subsidies per worker incl. support covering possible negative market income 
Average farmer income (without CAP support) = entrepreneurial income per worker - operating subsidies 
Nota: CAP support does not include investment support; average farmer income without CAP support in  LU and FI 
was negative over the period considered - the negative income compensated by CAP support is hatched on the graph 

Figure 6 

14 

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

-10.000

 
 
 
Although the role of direct payments in stabilising farm income is generally welcomed, 
the  fact  that  20%  of  farmers  receive  80%  of  the  payments  sometimes  prompts 
accusations of "unfairness". These numbers are a reflection of a system where payments 
are  linked  to  land  which  is  concentrated  among  a  minority  of  farmers.  Half  of  CAP 
beneficiaries  are  very  small  farms  and  most  of  the  payments  go  to  medium-size 
professional  family  farms,  however  a  more  balanced  distribution  of  support  should  be 
promoted.  Direct  payments  will  fulfil  their  mission  more  effectively  and  efficiently  if 
they are simplified and better targeted. Any change would however have to preserve one 
of the key assets of the policy: the protection of the well-functioning internal market the 
CAP has created over the years.  

Figure 7 

To target direct payments more effectively to ensure income to all farmers across the EU, 
as  evoked  in  the  above-mentioned  Reflection  paper,  without  being  exhaustive  the 
following  possibilities  in  order  to  ensure  a  fair  and  better  targeted  support  of  farmers' 
income should be further explored:  

–  A compulsory capping of direct payments taking into account labour to avoid negative 

effects on jobs;  

–  Degressive payments could be introduced as well, as a way of reducing the support for 

larger farms; 

–  Enhanced focus on a redistributive payment in order to be able to provide support in a 

targeted manner  e.g. to small-medium sized farms; 

15 

 
 
 
–  Ensure  support  is  targeted  to  genuine  farmers,  focussing  on  those  who  are  actively 

farming in order to earn their living. 

At the same time, the CAP needs to play its role in following the principles of "Equality 
between its Members, big or small, East or West, North or South", which were recalled 
by President Juncker in his  State of the Union address  of 2017. In  this  sense, it should 
reduce differences between Member States in CAP support. Even if the wide diversity of 
relative costs of labour and land as well as the different agronomic potentials across the 
EU should be acknowledged, all EU farmers face similar challenges.  

3.2.2. 

Investing to improve farmers' market reward  

The  CAP  should  play  a  larger  role  in  helping  farmers  make  more  money  from  the 
investments  into  farm  restructuring, 
market.  There  is  a  clear  need  to  boost 
modernisation,  innovation,  diversification  and  uptake  of  new  technologies  and  digital-
based opportunities such as precision agriculture, the use of big data, and clean energy in 
order to improve individual farm sustainability, competitiveness and resilience, including 
against the negative impacts of climate change. The position of farmers in the food chain 
is an important factor, and will also be addressed by the scheduled proposal to improve 
the EU food supply chain10. Additional reflections are needed on the role and effective 
functioning  for  agricultural  producer  organisations.  Recognised  producer  organisations 
can be a useful tool to enable farmers to strengthen their bargaining position in the value 
chain and to cooperate to reduce costs and to improve their competitiveness to improve 
market reward. As producer organisations are particularly relevant for small farmers, it is 
important  that  they  are  organised  so  they  offer  opportunities  for  them.  Emerging 
sustainable  rural  value  chains  in  areas  such  as  bio-based  industries,  bio-energy  and 
circular  economy,  as  well  as  ecotourism  offer  opportunities  for  farmers  and  rural 
businesses  to diversify their  businesses,  hedge risks and provide additional income: the 
policy should increasingly focus on supporting such efforts.  

The performance of investment support under the CAP should also be improved through 
better  integration  of  business  advice  and  promotion  of  collective  investments  and 
mechanisms  to  get  effective  synergies  with  research  and  innovation.  The  current 
investment gap in agriculture needs to be addressed, also through more use of innovative 
financial instruments that take into account the specificities of farming as well as more 
integrated projects that link various EU instruments (EFSI, ESIF). Further work with the 
European Investment Bank (EIB) may point the way. 

10  Commission  Work  Programme  2018  –  An  agenda  for  a  more  united,  stronger  and  more  democratic 
Europe, COM(2017)650 final of 24.10.2017. 

16 

 
 
                                                 
3.2.3.  Risk Management 

In the context of a greater market orientation of the CAP, more market exposure led to 
higher  risks  of  price  volatility  and  an  increasing  pressure  on  incomes.  Risks  also  stem 
from climate change, the associated increased frequency and severity of extreme events 
and  more  frequent  sanitary  and  phytosanitary  crises  affecting  the  EU  livestock  and 
agronomic  assets.  While  farmers,  as  entrepreneurs,  are  ultimately  responsible  for 
designing their own on-farm strategies, it is important to set up a robust framework for 
the farming sector to successfully prevent or deal with risks and crises, with the objective 
of enhancing its resilience and, at the same time, providing the right incentives to crowd-
in private initiatives.  

Figure 8 

The CAP already offers a layered set of tools helping farmers to prevent and manage 
risks, from direct payments and market intervention to post-crises compensations and the 
present  second  pillar  measures  in  particular  an  Income  Stabilisation  Tool  (IST)  and 
insurance support. For example sector specific stabilisation tools with a 20% trigger level 
for income loss can be effective. It is important to consider whether to further adjust its 
design  to  improve  its  functioning.  Furthermore,  it  should  be  explored  how  existing 
possibilities as regards risk management can be better exploited, for instance by the use 
of indexes to calculate farm income losses, reducing red tape and costs. 

17 

 
 
 
The  understanding  and  consideration  by  the  farming  community  of  risk  management 
instruments in general and agricultural insurance in particular can be improved. There is 
an  opportunity  to  increase  knowledge  of  the  benefits  of  those  systems  through  rural 
development  training,  knowledge  transfer  initiatives  and  the  inclusion  in  the  farm 
advisory service.  

In  the  short  run,  a  permanent  EU-level  platform  on  risk  management  will  be  set  up, 
providing  a  forum  for  farmers,  public  authorities  and  stakeholders  to  exchange 
experiences  and  best  practices,  with  the  objectives  of  improving  implementation  of  the 
current tools and informing future policy developments.  

At the same time, it is worthwhile exploring how to further develop an  integrated and 
coherent approach to risk prevention, management and resilience, which combines, in a 
complementary  way,  EU-level  interventions  with  Member  States'  strategies  and  private 
sector  instruments  which  address  income  stability  as  well  as  climate  risks.  A  flexible 
approach,  in  this  context,  is  a  necessary  condition  to  allow  tailored  solutions  for  the 
different  types  of  regional  and  sectoral  needs  of  farmers  and  to  support  their  market 
orientation.   

New  avenues  should  however  be  explored.  Financial  instruments  stimulating  the 
inflow  of  private  capital  can  help  to  overcome  temporary  cash  flow  shortages.  Other 
complementary measures to the current risk management toolkit, such as support for re-
insurance  of  mutual  funds  or  incentives  for  precautionary  savings,  may  also  be 
envisaged.  

Beyond the CAP toolbox, certain actions at Member State level could help provided 
that  they  are  compatible  with  state  aid  rules.  This  concerns  for  instance  provisions  in 
taxation policy that currently discourage farmers to make from savings in good years to 
cope with bad years.  

3.3.  Bolstering environmental care and climate action and contributing to the 

achievement of EU environmental and climate objectives 

Climate change and constraints on natural resources will continue affecting farming and 
driving food security challenges. The EU 2030 Climate and Energy targets set ambitious 
goals.As  all  sectors,  agriculture  should  make  a  fair  contribution  to  these  targets,  as 
outlined  in  the  Commission  proposals  on  Effort  Sharing  and  Land-Use,  Land  Use 
Change and Forestry (LULUCF). At the same time, agriculture is one of the sectors most 
vulnerable  to  climate  change.  Water  scarcity,  changing  precipitation  patterns,  overall 
temperature increases and variation, increased intensity and frequency of climate-related 
extremes, presence and persistence of (new) pests and diseases, and fire risks are already 
challenging current agricultural and forestry practices and production. However, farmers 
and foresters are not only users of natural resources, but also, indispensable managers of 
ecosystems, habitats and landscapes. Any new CAP should reflect higher ambition and 
focus more on results as regards resource efficiency, environmental care and climate 
action.  

18 

 
 
The future CAP should make the best use of research results, ensure that knowledge is 
shared  and  implemented  and  support  proliferation  of  modern  technologies  to  maximise 
the  contribution  of  agriculture  to  the  EU  and  global  objectives.  Climate-smart  farming 
supported by training, advice and innovation is one part of the answer; but this requires 
an  agricultural  policy  with  strong  commitment  to  deliver  public  goods  and  ecosystems 
services related to soil, water, biodiversity, air quality, climate action and the provision of 
landscape  amenities.  It  is  also  important  that  the  contribution  of  the  CAP  to  these 
objectives is strategic and measurable.  

The  current  green  architecture  of  the  CAP,  that  primarily  relies  on  the  complementary 
implementation  of  three  distinct  policy  instruments  –  cross  compliance,  green  direct 
payments  and  voluntary  agri-environmental  and  climate  measures  will  be  replaced  and 
all operations integrated into a more targeted, more ambitious yet flexible approach. The 
new  delivery  model  will  allow  Member  States  to  devise  a  mixture  of  mandatory  and 
voluntary  measures  in  Pillar  I  and  Pillar  II  to  meet  the  environmental  and  climate 
objectives  defined  at  EU  level.  Member  States  will  need  to  define  quantified  targets 
which  will  ensure  that  the  agreed  environmental  and  climate  objectives  defined  at  EU 
level  are  achieved.  Member  States  will  have  the  flexibility  to  formulate  strategic  plans 
allowing  for  addressing  climate  and  environmental  needs  at  local  level.  It  should  be 
explored  how  an  obligatory  EU-wide  requirement  to  have  a  nutrient  management  plan 
and incentives for precision agriculture, forming part of any Member State CAP strategic 
plan,  could  improve  results.  The  Commission  will  explore  inter  alia  how  to  cater  for 
measures  that  yield  high  EU  environmental  added  value,  such  as  conservation  of 
permanent  pastures,  maintenance  and  creation  landscape  features,  agriculture  in  areas 
with  natural  constraints,  organic  farming,  as  well  as  individual  or  collective  schemes 
aimed at soil health, biodiversity and /river basin stewardship. 

The  granting  of  income  support  to  farmers  will  be  conditioned  to  their  undertaking  of 
environmental and climate practices, which will become the baseline for more ambitious 
voluntary  practices.  The  new  conditionality  will  rely  on  the  implementation  of  a 
streamlined  set  of  environmental  and  climate  conditions,  providing  environmental  and 
climate  public  goods.  These  practices  would  be  further  defined  by  Member  States  in 
order  to  better  take  account  of  their  specific  situation,  climate  risks  and  needs,  while 
ensuring that these practices adequately contribute to the objectives agreed at EU level.  
Member  States  would  have  to  ensure  that  the  agreed  targets  are  met  and  monitor 
performance in a robust and credible way.  Additional environmental / climate benefits 
will  be  achieved  through  voluntary  entry  level  schemes  and  more  ambitious  agro-
environment-climate  schemes  that  will  allow  Member  States/Regions  to  target  their 
specific concerns.  

Such approach will lead to simplification - one layer of requirements for direct payments, 
a single set of management and control rules and a reduction of administrative burden to 
the Member State and the farmer. Greater subsidiarity will remove "the one size fit all" 
approach  and  ensure  a  clear  environmental  link  for  actions  taken.  However,  to  ensure 
coherence with the overarching EU objectives, all actions and targets put forward by the 
Member State will be approved by the Commission within an EU framework agreed as 
part of the CAP strategic plan. 

19 

 
 
The overall performance of the new green architecture should encourage the promotion 
of  co-operative/collective  approaches,  involving  Farmers  and  Stakeholders  in  a  result-
oriented  delivery  of  environmental  and  climate  public  goods  and  developing  schemes 
that integrate the provision of knowledge and environmental investments.  

3.4.  Strengthening the socio-economic fabric of rural areas 

3.4.1.  Growth and jobs in rural areas 

Many rural areas in the EU suffer from structural problems, such as a lack of attractive 
employment  opportunities,  skill  shortages,  underinvestment  in  connectivity  and  basic 
services and a significant youth drain. In a Union of equals the potential and aspirations 
of rural citizens and communities must be better addressed in EU policies. The CAP, and 
in  particular  Rural  Development  Policy,  has  an  important  role  to  play  to  promote  rural 
jobs and growth as well as to preserve the environmental quality of rural areas.  

Joint  EU  and  national  investment  in  infrastructure,  natural  and  human  capital 
development is paramount to support sustainable, quality employment in rural areas. The 
rural  communities  should  have  better  access  to  public  services,  health  care,  vocational 
training,  programmes  to  develop  new  skills  notably  in  the  digital  sector,  quality 
education, and connectivity. 

The  CAP  is  one  of  several  EU  policies  that  contribute  to  prosperous  rural  areas  and  it 
must  improve  its  complementarity  with  other  EU  policies  such  as  Cohesion  Policy  - 
which also provides substantial EU funding in rural areas  - and the Connecting Europe 
Facility  as  well  as  national  funds  and  strategies.  Improved  coordination  between  these 
policies  would  result 
tape  for 
administrations and citizens. 

in  simpler  delivery  mechanisms  and 

less  red 

New  rural  value  chains  such  as  clean  energy,  the  emerging  bio-economy,  the 
circular economy, and ecotourism can offer good growth and job potential for rural 
areas. By-products from agri-food and forestry could find new value as  inputs for bio-
energy  and  bio-based  industries,  while  manure  can  turn  into  biogas  and  fertiliser  thus 
supporting  both  the  energy  transition  and  the  wider  nutrient  recycling.  This  also 
contributes  to  the  substitution  of  more  polluting  and  non-renewable  resources  and 
materials,  and  to  a  reduction  of  food  losses  and  waste.  Sustainable  agriculture  and 
forestry are both strategic sectors to develop this potential.  

Growth  of  the  bio-economy  in  a  sustainable  business  model  should  therefore 
become a priority for the CAP strategic plans, and support the EU circular economy 
strategy  and  the  development  of  new  business  models  which  will  benefit  farmers  and 
foresters  whilst  creating  new  jobs.  This  would  also  boost  the  CAP's  potential  to 
contribute  to  the  Energy  Union  and  the  EU  Industrial  Policy  by  promoting  clean  and 
efficient energy production, including sustainable biomass mobilization in respect of the 
core  principles  of  the  EU  circular  economy  strategy.  The  EFSI  and  other  financial 
instruments should leverage additional support from Rural Development programmes in 
order  to  provide  low  cost  and  longer  term  loans  for  entrepreneurs  that  are  willing  to 
invest in rural areas. 

20 

 
 
Figure 9  

One  priority  for  this  future  joint  work  across  policy  areas  is  development  of  "Smart 
Villages" throughout the Union. This emerging concept, currently developing through a 
number of initiatives and pilots, will help local communities address issues of inadequate 
broadband  connectivity, employment  opportunities  and  service  provision  in  a  clear  and 
comprehensive  manner.  The  Commission  is  committed  to  reinforcing  support  for  rural 
communities and local authorities that wish to develop Smart Villages through capacity 
building, investments, innovation support, networking as well as through the provision of 
innovative financing tools for improving skills, services and infrastructure.  

Continued joint EU and national investment in human capital development in rural areas 
is  needed  to  support  sustainable  and  quality  employment  and  to  help  people  living  in 
these areas fulfil their potential, and their community's potential by helping them acquire 
new skills, and have improved access to quality key services, including access to quality 
education. 

The bottom-up, locally led approach LEADER has proven to be an effective means to 
local  capacity  building  and  to  promoting  social  inclusion,  poverty  reduction  and  job 
creation in the local economy. There is a need for better synergy and coordination with 
municipal authorities and local agencies to fully mobilise rural potential. 

21 

 
 
 
Through  its  rural  development  policy,  the  CAP  is  the  "rural  champion"  of  the  Union. 
However,  while  all  macro  and  sectorial  policies  have  a  potential  impact  on  rural 
communities and many EU funds the capacity to promote rural prosperity, this capacity 
for rural regeneration is not always maximised. The Commission is therefore committed 
to  promoting  a  "rural  proofing"  mechanism,  which  systematically  reviews  relevant 
policies through a "rural lens", considering possible impacts on rural communities. 

3.4.2.  Attracting new farmers 

A  prosperous  agricultural  sector  can  develop  only  if  a  real  change  of  generation  takes 
place:  our  aging  agricultural  community  needs  new  blood  to  make  the  sector  more 
dynamic  and  open  to  on-going  technological  transformations.  However,  young  farmers 
and other new entrants face considerable obstacles to starting up farming activity, among 
them economic ones such as high land prices but also societal ones such as the perception 
of farming as an unattractive or old fashioned occupation, sometimes with inappropriate 
social protection.  

Figure 10 

22 

 
 
Generational  renewal  should  become  a  priority  in  a  new  policy  framework,  but  it 
must be recognised that Member States are in the best position to stimulate generational 
renewal  using  their  powers  on  land  regulations,  taxation,  inheritance  law  or  territorial 
planning11. Taking this into account, there is a need to improve the consistency between 
EU and national actions. The CAP should give flexibility to Member States to develop 
tailor  made  schemes  that  reflect  the  specific  needs  of  their  young  farmers.  The  new 
delivery system will facilitate Member States' actions to assist young farmers. The CAP 
strategic  plans  could  include  support  for  skills  development,  knowledge,  innovation, 
business  development  and  investment  support.  Producer  Organisations  can  play  a 
valuable role here. To increase learning opportunities abroad for young people living in 
rural areas, Erasmus exchange possibilities for young farmers should be bolstered.  

Setting up in agriculture implies high risk with large capital requirements and uncertain 
income.  The  CAP  should  help  mitigate  this  risk  in  the  first  years  after  launching  a 
farming business by providing an EU-wide system of support to the first installation 
with necessary support in a simpler and better targeted way: this could be achieved with a 
simplified top-up payment for new entrants (tailored by Member States according to the 
specific needs) and/or the reinforcement or extension of current lump-sum payments.   

Access to financial instruments to support farm investments and working capital should 
be facilitated and better adapted to the investment needs and higher risk profiles of new 
entrants.  Support  to  the  new  generation  of  farmers  could  be  combined  with  the 
appropriate  incentives  to  facilitate  the  exit  of  the  older  generation  and  increase  land 
mobility.  Furthermore,  there  is  a  growing  need  to  support  actions  that  stimulate  the 
transfer  of  knowledge  among  generations  (through  partnerships  and  other  new 
business  models)  and  facilitate  succession  planning  (i.e.  advisory  services,  mentoring 
and the preparation of “farm succession plans”).  

3.5.  Addressing  citizens'  concerns  regarding 

sustainable  agricultural 

production, including health, nutrition, food waste and animal welfare 

The CAP is one of the EU policies responding to societal expectations regarding food, in 
particular  concerning  food  safety,  food  quality,  environmental  and  animal  welfare 
standards.  Farmers  are  the  real  gatekeepers  of  food  production  systems;  as  such  the 
contribution they can give to a sustainable food chain is crucial.  

11 In this context, the European Commission has recently published guidance on how to protect agricultural 
land  (Interpretative  Communication  on  the  Acquisition  of  Farmland  and  EU  law,  2017/C  350/05  of 
18.10.2017). 

23 

 
 
                                                 
 
Citizens  are  also  increasingly  valuing  access  to  a  wide  variety  of  food  that  carries 
broader  benefits  for  society,  such  as  organic  produce,  products  with  geographical 
indications  (GIs),  local  specialities  and  innovative  food.  In  synergy  with  other  EU 
policies,  the  CAP  must  continue  to  respond  to  these  concerns,  for  instance  by 
modernising  organic  rules,  continuing  to  make  GIs  more  attractive  to  farmers  and 
consumers and easier to manage, or supporting the objectives of the Sustainable Use of 
Pesticides  directive12.    The  CAP  should  become  more  apt  at  addressing  critical  health 
issues such as those related to antimicrobial resistance (AMR) caused by inappropriate 
use of antibiotics. In line with an  ambitious and encompassing approach with regard to 
human  and  animal  health  -  as  embodied  by  the  "One  Health"  concept13  –  it  should 
also  promote  the  use  of  new  technologies,  research  and  innovation  to  reduce  risks  to 
public health. 

Identically the CAP can help farmers to improve the application of EU rules on animal 
welfare  and  to  further  increase  standards  through  voluntary  initiatives  aimed  at 
promoting the market value of animal welfare both within and outside the EU. 

The CAP should continue to support production with specific and valuable characteristics 
through  Rural  Development  as  well  as  to  promote  and  improve  its  international 
recognition. The CAP also has a role to play in promoting healthier nutrition, helping 
to reduce the problem of obesity and malnutrition, making nutritious valuable products 
such  as  fruits  and  vegetables  easily  available  for  EU  citizens.  A  good  example  is  the 
Schools schemes, under which free fruit, vegetable and dairy products are subsidised in 
schools  and  by  using  these  schemes  to  promote  class  room  activities  related  to  healthy 
eating. Campaigns to promote healthy dietary practices and increasing the consumption 
of fruit and vegetables should be a focal point in the CAP promotion activities.  

Consumers' food choices depend on a number of factors going far beyond the remits of 
the CAP. The most important role for the policy is therefore to help farmers anticipate 
developments  in  dietary  habits  and  adjust  their  production  according  to  market 
signals and consumers' demands. Strengthening the knowledge triangle in agriculture and 
forging  better  links  to  relevant  initiatives  such  as  the  European  Institute  for  Innovation 
and  Technology's  Food  Partnership  and  the  EU  Food  2030  research  strategy  will  also 
help maximise the contribution of the CAP to future-proofing our food system. . 

Finally,  the  CAP  can  help  to  reduce  food  waste  and  food  losses  by  stimulating    better 
production  and  processing  practices  (e.g.  promoting  new  technologies  that  extend  the 
shelf life of perishable products or better matching supply and demand through increased 
transparency) and by supporting initiatives that transform traditional produce-use-discard 
consumption patterns into a circular bio-economy.    

12 Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a 
framework for Community action to achieve the sustainable use of pesticides. 

13 See also https://ec.europa.eu/health/amr/sites/amr/files/amr_action_plan_2017_en.pdf 

24 

 
 
                                                 
 
4.  THE GLOBAL DIMENSION OF THE CAP 

The CAP is a policy for the EU but it obviously has global implications and linkages. 
Close attention must be paid to these when decisions are taken about the policy's future. 
The  linkages  between  the  CAP  and  Sustainable  Development  Goals  are  presented  in 
figure  3.  The  EU  is  committed  to  support  partner  countries  achieving  the  same  goals 
through  external  policies  and  instruments.  Therefore  it  will  seek  coherent  action 
among  its  policies  in  line  with  the  2030  Agenda,  and  with  its  commitment  to  enhance 
policy  coherence  for  sustainable  development14.  The  latter  requires  taking  into  account 
the  objectives  of  development  cooperation  in  policies  which  are  likely  to  affect 
developing countries.  

To  this  regard,  the  CAP  is  and  will  continue  to  be  coherent  with  the  EU  development 
policy15,  which  recognises  the  important  role  sustainable  agriculture  plays  for  poverty 
eradication and  sustainable  development  in  developing  countries  and  promotes  also  the 
development  of  agricultural  markets  and  inclusive  value  chains  which  benefit  the  poor 
and encourage the agro-industry to generate jobs.  

4.1.  Trade 

Thanks to the efforts of the EU's agricultural and food processing sector, with support of 
EU trade agreements and the CAP (including its promotion policy) the EU is the world 
largest  agri-food  exporter.  Further  liberalisation  of  trade  and  increased  participation  in 
global value chains will allow the EU agri-food sector to develop exports even further, 
responding to growing middle-class demand worldwide, as well as dietary changes. For 
citizens, further growth in international trade will improve the accessibility, variety and 
affordability of food.   

Maintaining  the  market-orientation  of  the  EU  agri-food  sector  and  the  compatibility  of 
CAP  measures  with  international  trade  law  will  also  allow  the  EU  to  retain  its  leading 
role  in  international  bodies  such  as  the  World  Trade  Organisation  (WTO),  promoting 
open trade and advocating strict disciplines on trade-distorting forms of support. 

At  the  same  time,  it  cannot  be  ignored  that  specific  agricultural  sectors  cannot 
withstand  full  trade  liberalisation  and  unfettered  competition  with  imports.  We 
therefore need to continue to duly recognise and reflect the sensitivity of the products in 
question  in  trade  negotiations  and  explore  ways  how  to  address  the  geographical 
imbalances of advantages and disadvantages that affect the farm sector within the Union 
as a result of EU trade agreements.  

14 Cf. art. 208 TFEU 

15  The  new  European  Consensus  on  Development  signed  on  07/06/2017,  and  available  on 
https://ec.europa.eu/europeaid/sites/devco/files/european-consensus-on-development-final-
20170626_en.pdf 

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Currently,  the  EU  faces  export  restrictions  from  many  important  agri-food  markets  of 
third countries due to unjustified sanitary and phytosanitary (SPS) barriers. The EU will 
continue  seeking  a  fair  and  balanced  relationship  with  our  trading  partners  and,  where 
appropriate, promoting the EU SPS 'Single Entity' concept. The high standards of the EU 
will in no case be compromised. Furthermore, the EU, through its different cooperation 
and  technical  assistance  tools,  should  foster  increased  cooperation  with  EU  partner 
countries  and  regions,  in  particular  when  facing  new  and  emerging  animal  health  and 
phytosanitary threats. 

4.2.  Migration 

The  future  CAP  must  play  a  larger  role  in  implementing  the  outcome  of  the  Valetta 
Summit16, addressing the root causes of migration.   

Knowledge  and  know-how  gained  from  CAP-supported  projects  should  be  used  to 
develop employment opportunities and revenue-generating activities in regions of origin 
and transit of migrants, including through the EU External Investment Plan Pilot projects 
for  training  young  farmers  -  with  the  involvement  of  European  farmers'  organisations. 
Furthermore,  EU-Africa  Union  exchange  schemes  are  avenues  to  explore.  Cooperation 
on  agricultural  research  and  innovation  must  be  deepened  through  the  relevant  EU 
policies  and  instruments.  The  Commission  is  also  committed  to  enhancing  strategic 
policy  cooperation  and  dialogue  with  the  Africa  Union  on  issues  related  to  agriculture 
and rural development so as to help the region develop its agri-food economy. 

Within the EU, agriculture offers oportunities for seasonal workers.  

Moreover, through its rural development arm, the CAP can play a role in helping to settle 
and  integrate  legal  migrants,  refugees  in  particular,  into  rural  communities.  Experience 
shows that Community-Led Local Development/LEADER is particularly apt for this.  

16 See http://www.consilium.europa.eu/en/meetings/international-summit/2015/11/11-12/# 

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