Directore General for Agriculture and Rural Development “The Common Agricultural Policy towards 2020: meeting the food, natural resources and territorial challenges of the future” Directore General for Agriculture and Rural Development European Commission

Challenges and Opportunities Habitats Biodiversity Cultural Landscape Food Supply Climate Biomass Economic Viability Rural Vitality Resource- management

‚Construction Sites‘ of the CAP Rural Development Policy Budget Financial Perspective post-2013 Emphasising EU strategic priorities: Competitiveness Environment Balance territorial Development Greening of the 1st pillar Market intervention as safety net Market and Income Policy Horizontal Rules Streamlining of “Cross-Compliance” More balanced distribution Modulation becoming obsolete

Main Objectives Viable Food Production Sustainable Resource Management and Climate Action Balanced Territorial Development Income Share in food chain value added Structural diversity Natural handicaps Environment and the countryside Managing water, soil, biodiversity Innovation Climate change mitigation and adaptation Employment Diversification Mobilising local potentials Attractive Rural Areas EU value added implies need for Community action

Modified Tool-kit Direct Payments Market Measures Rural Development Redistribution Capping Support for small farms “Greening” Cross-compliance Natural handicaps Limitation of coupling Strict market orientation Streamlining and simplification Phasing out of dairy quota Sugar: “soft landing” Improving farmers’ position in food chain Strategic Framework Competitiveness Environment Balanced territorial development Instruments: Investment Agri-environment Natural handicaps Knowledge transfer Innovation Local potentials Local markets Risk management

Focus on ‚Green‘ CAP Measures First Pillar Cross compliance New ‚green‘ measures (e.g. permanent pasture, green cover, crop rotation, ecological set-aside, Natura 2000 support) Support for sustainable farming in areas with natural handicaps Second Pillar Investment into physical and human capital Innovation (in particular resource efficiency) Agri-environment measures (water, biodiversity, soil, landscapes) Support in areas with natural handicaps and HNV areas Mobilising local potentials and diversification

The Main Policy Options Continuity in the reform process with further gradual changes and adjustments of the most pressing problems (e.g. more balanced distribution of direct payments) Option 1 Capture the opportunity for reform ensuring that CAP becomes more sustainable and balanced (strategic orientation, redistribution, innovation, ‚green measures‘, sustainable and integrative growth) Option 2 More fundamental focusing entirely on environmental and climate change objectives through rural development, moving away from income support and most market measures Option 3

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