Policy developments and the use of statistical data Krisztina HANTOS Unit E3 – Economic analysis of EU agriculture DG Agriculture and Rural Development European Commission

Challenges and responses CAP 2014-2020, Pillar I Achieving a better distribution of DP "Active farmer" Transfers between Pillars Redistributive payments v Small farmers scheme (10%) v Sustainable management of natural resources/climate change Greening of direct payments (30%) Crop diversification Permanent grassland Ecological focus area Support in natural constraint areas v Supply concerns Coupled payments for wide range of sectors up to 8% of DP v V = voluntary

Challenges and responses CAP 2014-2020, Pillar II Economic crisis Climate change Food quality Lack of knowledge and information Structural investment Supports in Physical Assets Risk management NEW Agri-Enviroment-Climate Measure Quality schemes for agricultural products, and foodstuffs Support for organic farming Knowledge transfer and innovation Advisory services Co-operation NEW

2 pillars, 4 regulations Regulation 1305/2013 Regulation 1305/2013 The amounts for both pillars are frozen for the period of 2014-2020 at the level of 2013. Rural Development: Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 "Horizontal" issues such as funding and controls: Regulation 1306/2013 Direct payments for farmers: Regulation 1307/2013 Market measures: Regulation 1308/2013 Regulation 1306/2013

State of play of approvals of 2014-2020 RD Programmes – 30/09/2015 87 out of 118 Programmes approved 82% of the Rural Development budget approved Programmes approved in 25 out of 28 Member States, and completed in 22 Member States

M&E of the CAP Regulation (EU) No 1306/2013 Art. 110.2: The performance of the CAP shall be measured in relation to the following objectives: (a) viable food production, with a focus on agricultural income, agricultural productivity and price stability; (b) sustainable management of natural resources and climate action, with a focus on greenhouse gas emissions, biodiversity, soil and water; (c) balanced territorial development, with a focus on rural employment, growth and poverty in rural areas. Art. 110.3: Member States shall provide the Commission with all the information necessary to permit the monitoring and evaluation of the measures concerned. As far as possible, such information shall be based on established sources of data, such as the Farm Accountancy Data Network and Eurostat. Art. 110.5: The Commission shall present an initial report, including first results on the performance of the CAP, to the European Parliament and the Council by 31 December 2018. A second report including an assessment of the performance of the CAP shall be presented by 31 December 2021.

Usage of statistical data for RD policy Monitoring & evaluation Statistical reports & analyses Impact assessments Monitoring & evaluation Economic Briefs Agricultural Annual Statistics FADN analyses Evaluation reports Common Indicators (context, impact, result, output)

Common context indicators (CCIs) for RD programmes 46 context indicators, includes impact indicators

Poverty rate by type of region in the EU-28 in 2012

Economic brief on the food supply chain Who does what in the EU food supply chain? The food chain and its contribution to the economy, Prices and price transmission in the food chain

Food and beverages spending as % of EU28 household budget Spending in the EU has slightly decreased over the last 2 decades The lowest point can be seen in 2007 when the economic crisis began to emerge Stood at 14% in 2013 and thus this is the second biggest expense of the household budget The reverse is true for periods of economic crises, in which incomes shrink and food and beverages expenditure takes a bigger share of the household budget. Source: Eurostat, National Accounts (nama_10_co3_p3).

Contribution of the different stages of the food chain to the European economy, EU28, 2012 The largest number of persons and businesses involved in the food chain is engaged in agriculture (80% of all holdings) The share of value added belonging to agriculture in the whole food chain remains at about 25% Processing and retail stages have added additional features and services to the basic agricultural product Sources: Eurostat, National Accounts (nama_nace64_c), Farm Structure Survey (ef_kvaareg and ef_olfftecs), Economic Accounts for Agriculture (aact_eaa01) and Structural Business Statistics (sbs_na_sca_r2, sbs_na_dt_r2 sbs_na_dt_r2 and sbs_na_1a_se_r2)..

EU Agricultural Market Brief on organic farming How has this sector developed in the EU? The situation of organic areas, holdings and production Some characteristics of organic farms (size and information on farm managers)

Organic farming area and holdings are on the rise Organic area as share of UAA in the EU Member States (%), 2011 Source: Eurostat, FSS.

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