NetNews@IFAJ2001
September 9th,2001

- Minister Hemilä of developing CAP-policy: 
More attention to compensating for the disadvantages of less favoured areas

- Let's make a good congress! 

 - SATURDAY 8.9.2001

Minister Hemilä of developing CAP-policy: 
More attention to compensating for the disadvantages of less favoured areas
11.30 am

The common agricultural policy should take the special characteristics of agriculture in less favoured areas better into account. I believe that the common agricultural policy should be developed in such a way that more attention is paid to compensating for the differences in competitiveness due to natural conditions. This would make the support more readily acceptable in international trade negotiations, and the outcome would be more suitable as the new common policy of the enlarged union than the present direct support. This would also be in harmony with the cohesion objective of the Community.

The main objective of the Agenda 2000 reforms was to create competitive agriculture, which would also respond to the needs of society concerning sustainable development and viability of the rural areas. This laid the foundations for the second pillar of the agricultural policy in connection with Agenda 2000. Also for Finland the agri-environmental programmes and support for less favoured areas are of primary importance.

At the moment it seems clear that all future reforms must be realised within the very tight financial framework decided at the Berlin European Council. Therefore, reforms with wider implications are not likely to be decided in the coming mid-term review process. The time for these will come in connection with the new financial framework to be drafted by the next Commission.  

There has already been some discussion concerning the financial arrangements of the CAP. Modulation and degressivity have been put forward as solutions if in the mid-term review process it becomes evident that savings are needed to fund further reforms or increased spending in rural development. Both of these methods are problematic for Finland.

Modulation offers opportunities for increasing the resources for rural development in countries where natural conditions for practising agriculture are favourable and where the level of direct support is high. In this sense, the idea of compulsory modulation on the Member State level conflicts with the basic cornerstones of rural development. Modulation on the European level would be a better alternative, in other words, reduction of direct support and use of the savings through the Community funds for rural development. If a decision on compulsory modulation is taken, it should be possible to implement this by using the support ceiling model, which means that support would be cut only for the part of the largest farms.

Degressivity of direct support would also be very difficult to accept in Finland. As we have already seen, less favoured areas receive less community support than more favourable areas. Should this support be further reduced, the continuation of farming would be seriously endangered in these areas.

The recent food crises have incorporated consumer concerns to the agricultural decision making with new weight. Regaining consumer confidence in European food production is perhaps the most important task for the agricultural policy makers at present. We must make sure that European agriculture produces safe, high quality products, whether organic or conventional, which the consumers demand and appreciate. To be able to provide them, farming must remain profitable and rural areas viable.

Let`s make a good congress!
Friday 11.00pm

Let’s make a good congress, I know you can do it!, inspirited Ms. Pirjo Kontio, the President of the Finnish Association,  all the almost hundred colleagues from 26 countries. The 45^th annual IFAJ-congress began by Get Together Party at Savonlinna Old Casino at Saturday night with Finnish food, music, short speeches and a lottery.

Anyhow Anthony Rosen was astonished, when the young Takamus-group was playing. - Where the hell I am? I’m only missing a glass of Guinnes in my hand. And Anthony had a point: the peace the Takamus was playing was Irish.

Mrs. Marie-Therese Larcher

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