Federal Association of Farm and Forest Owners in Austria Implementation of Common Agricultural Policy in Austria Vienna Twinning Conference 7 th October 2004 Hans Grieshofer

Federal Association of Farm and Forest Owners in Austria Substantial Facts and Figures of Austrian Agriculture (1) Land Use in 1,000 hectares Arable land Total grassland1.917 Agricultural area Wooded area3.260 Other areas753 Source: Statistics Austria 2004

Federal Association of Farm and Forest Owners in Austria Substantial Facts and Figures of Austrian Agriculture (2) Agricultural Production Areas in 1,000 ha, Yields in 100 kg/hectares ProductsCultivated area Yield per haCultivated area Yield per haCultivated area Yield per ha Wheat287,852,4288,849,7272,043,8 Rye51,241,747,136,340,033,2 Barley217,546,6200,942,9212,341,6 Oats31,540,832,136,434,437,4 C. Maize171,487,1172,296,8173,383,8 Potatoes23,1300,422,5303,821,1265,3 Sugar beet 44,7620,444,5684,543,2575 Source: Statistics Austria 2004

Federal Association of Farm and Forest Owners in Austria CAP Backgrounds CAP Reform WTO Cancun 03, Genf 04 Agenda 2000 Berlin 1999 EU Enlargement Copenhagen 2002 Sustainability Göteborg 2001

Federal Association of Farm and Forest Owners in Austria CAP Developments since 2002  Strategy Paper of European Commission (July 2002) Mid-Term Review – Legislative Proposals (January 2003) Political Unification ( ) Appointment in the Council of Agricultural Department ( ) Beginning of Implementation in Austria ( )

Federal Association of Farm and Forest Owners in Austria Main elements of the CAP Reform  Decoupling: Single Farm Payment scheme (SFP), independent from the production volume!  Cross-Compliance: Making direct payments within the framework of market organisations conditional on the compliance with standards in the field of Enviroment, Food Safty, Animal and Plant Health, Animal Welfare as well as the commitment to keep all agricultural areas of holding in a „good agricultural condition“  Modulation: Reduction of the Direct Payments from an amount exceeding € 5,000 onwards, in order to make additional financial resources avaiable for rural development  Arable crops: Various measures regarding durum wheat, protein plants, rye and the monthly increments  Milk: Prolongation of the milk quota until 2014/15

Federal Association of Farm and Forest Owners in Austria Implementation Time-Table  Legal Background on European Level  Legislation: Council Regulation (EC) No 1782/2003  Implementing Regulations (3) Cross-Compliance and Modulation Single Farm Payment Direct Support Scheme  National Decrees  Single Farm Payment  Cross-Compliance October 2004  Implementation Steps  March 2004: Identification of the persons currently eligible in the case of a change of the farmer – already carried out  Aug./Sept. 2004: Communication of the presumable data on he SFP to the farmers  Sept./Oct. 2004: Identification procedure and possibility to apply Cases of hardship Special Cases Anticipated transfer of payment entitlements in case of changes of the area  March 2005: Communication of the final data  April to 15. May: Application für the SFP  December 2005: Payment of the SFP

Federal Association of Farm and Forest Owners in Austria Austrian Implementation (1)  Basic Formula for the Payment Entitlement  Reference Amount = Market Payment Orders ( ) / 3 Years  Reference Area = Culture Plants Area and Forage Area / 3 Years  Payment Entitlement (in €/he) = Reference Amount / Reference Area Model of the Single Farm Payment

Federal Association of Farm and Forest Owners in Austria Austrian Implementation (2)  Area Payments  Culture plants  Peas and beans  Durum Wheat  Seeds  40% Starch Potatoes  Dried Food  Hop Decoupled Payment

Federal Association of Farm and Forest Owners in Austria Austrian Implementation (3)  Animal Premium  Special Premium for Male Cattle  Premium for increase of Male-Cattle, Sucker-Cows and Milk-Cows in mountaious region  Ewes and Goats  60 % Slaughter Premium for Adult Cattle Decoupled Payment

Federal Association of Farm and Forest Owners in Austria Austrian Implementation (4)  Activation: Utilizing a Payment Entitlement (PE) is possible in a hectare of eligible area  Transfer: Transfer within a Memberstate; Activation of least 80% in the first year; in cases sale without land, 50% of their value pass to National Reserve  Rotation of PE: Minimize the devaluation of PE  National Reserve: 3% of the maximum rate of the hole Austrian Farm Premium (2005; € 18 Mio.) plus PE not activated as well as unused PE; PE for Special Cases Use and Activation/Operation of SFP

Federal Association of Farm and Forest Owners in Austria Many Thanks for your Attention! Hans Grieshofer