European Commission - Directorate General for Agriculture - A2 Use of Statistics for defining and monitoring the Common Agricultural Policy Pierre Bascou European Commission DG AGRI May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Evolution of the CAP 1/ Productivity Competitiveness Sustainability The Crisis Years The Early Years The 1992 Reform Agenda 2000 Future Food security Improving productivity Market-stabilisation Income support Over production Exploding expenditure Internat. friction Reduced surpluses More competition Income stabilisation Budget stabilisation International competitive-ness Rural Development Environment Quality Process of a continued adjustment of CAP instruments to new requirements May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

CAP reform: a new step towards 2/ a long-term perspective for sustainable agriculture To enhance the competitiveness of EU agriculture setting intervention as a real safety net measure allowing producers to respond to market signals To promote a more market-oriented, sustainable agriculture completing the shift from product to producer support (decoupling) cross-compliance (environmental, food safety & animal welfare) To provide a better balance of support and strengthen rural development through modulation & broader scope of rural development measures May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Use of statistics in the CAP 3/1 Statistics played a crucial and increasingly important role in the CAP … 1. Conception economic and policy analysis (for a better understanding of the current situation and historical development); market, structural and income projections simulation and test of alternative policy scenarios (on market, economic, financial, structural, budgetary and agri-environmental variables) conception of rural development policy; analysis and preparation of trade negotiations enlargement May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Use of statistics in the CAP 3/2 … Statistics played a crucial and increasingly important role in the CAP … 2. Implementation and monitoring management of markets (in accordance with regulations for the common market organisation) management of trade agreements implementation and monitoring of rural development measures overall monitoring of the impact of the CAP on the socio-structural and economic and financial situation of the agricultural community May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Use of statistics in the CAP 3/3 … Statistics played a crucial and increasingly important role in the CAP 3. Evaluation ex-post evaluation of policy decisions once implemented on market developments, budget, financial and economic variables, structure of agricultural holdings and environmental indicators May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Different types of statistical information 4/ General agricultural statistics Information for the management of agricultural markets The “Farm Accountancy Data Network” (RICA) The “Integrated Administration and Control System” IACS Other types of information (such as statistics for rural development) May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

General agricultural statistics 5/1 “the masterpiece of the information complex for the CAP” Community Farm Structure Surveys: the backbone of the agricultural statistical system provision of socio-economic and structural information about 200 basic statistics, every 2-3 years for the “sufficiently large” agricultural holdings Production statistics: annual information on acreage, herd size, yield & production highly used for market management and balance sheet compilation May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

General agricultural statistics 5/2 Economic accounts satellite accounts of the national accounts, based on “gentleman’s agreement”: retrace economic activities and economic flows in the agricultural sector information on the place and interactions of the agricultural sector with the rest of the economy, on income developments Price statistics monthly and annual information on producer prices (absolute and index forms); based on “gentleman’s agreement” used for economic analysis May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Information system for market management 6/ Provided on the basis of Community legislation by Ministries of Agriculture and/or Statistical Institutes which are responsible for organising surveys, data collection, processing and transmission for management of the Common Market Organisations for most of EU agricultural products It includes the following domains: Market prices (weekly/monthly) Provisional balance sheets Intervention (weekly/monthly quantities, tender procedures) Trade (weekly/daily export and import prices, weekly quantities for which import/export licences are issued by country of origin/destination, weekly import quotas information) May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Farm Accountancy Data Network 7/ Provided on the basis of Community legislation for information on the incomes and financial situation of agricultural holdings covering “commercial farms”, more than 60 000 farms, I.e. 90% of EU agricultural area For each farm, information collected concern about 1000 variables on: Physical and structural data (location, crop areas, livestock numbers, labour force etc.) Economic and financial data (value of production, stocks, productions costs, assets, liabilities, production quotas, subsidies, taxes etc.) May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Integrated Administration and Control System 8/ Introduced in 1992 to manage EU subsidies unified declaration procedure, computerised data base, identification system for agricultural land plots and animals, and integrated control arrangements administrative controls for all dossiers and physical controls by sample the implementation of this system is considered as part of “acquis communautaire” to be applied by new Member States May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

A medium-term perspective for statistical needs 9/ New needs: even if current system is relatively comprehensive for traditional needs, efforts needed to better cover: the increasing integration of environmental concerns in the CAP and the promotion of sustainable development (changes towards more environmentally-friendly production methods) the “multifunctional” nature of agricultural holdings (diversification into sectors such as rural tourism, food processing, forestry, landscape management etc.) the enlargement of the EU to new Member States Continuous investment in the quality, accuracy and harmonisation of agricultural statistics and its timeliness in some sectors May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General

Conclusion: statistics and the CAP 10/ Statistics played a key role in the design, implementation, monitoring and evaluation of the CAP. This role is likely to increase overtime Even if the European system of agricultural statistics satisfies most of the needs of the CAP, it should be consolidated and improved for: better accuracy, reliability, up-to-dateness and harmonisation; larger coverage in response to new needs of the CAP the enlargement of the EU to new Member States constitutes an important challenge May 2001 European Commission - Directorate General for Agriculture - A2 European Commission - Agriculture Directorate-General