March 2022

Strategic priorities

Spain proposes a CAP Strategic Plan 2023-2027 that “aims at the sustainable development of agriculture, food and rural areas to ensure the food security of society through a competitive sector and a living rural environment”.

On the basis that the agri-food system is strategic for Spain, the Plan aims to lay the foundations for it to continue to be so over the next decade. To this end, the CAP will make more efficient use of the budget by linking aid to the fulfillment of objectives, mainly in three areas:

1. Greater equity in income support, through an improvement in the system for distributing direct aid; 2. Ensuring compliance with environmental commitments and objectives, combining regulatory measures with payments that remunerate farmers’ efforts beyond the baseline; 3. Putting into operation a broad set of measures aimed at contributing to the environmental, economic and social sustainability of the sector: investments, innovation, training and advice, as well as a determined effort to facilitate the incorporation of young people and the reduction of the gender gap in the sector.

As for the economic challenges, the plan is to support farmers in improving the competitiveness of their farms through income support, farm advisory services and rural development measures in favor of innovation, improved knowledge, investments, the use of technology and digitalization, among other aspects. It will be especially necessary to leave no one behind, particularly accompanying small and medium-sized farms, since they are the most socially important, and the ones that keep rural areas alive to a greater extent, which is why the plan makes use of all the redistribution measures within its reach: capping, degressivity and redistributive payment. 

In relation to the environmental and climate challenges, in the specific case of Spain, the fight against desertification and erosion, the improvement of soil structure and organic matter content or the maintenance of the high biodiversity linked to agricultural habitats are important needs.

This greater environmental and climate ambition has budgetary backing, as Spain estimates that approximately 43% of the total CAP budget will contribute to environmental and climate objectives. Starting from the baseline of enhanced cross-compliance, the CAP aims to encourage productive changes through additional voluntary payments, both national (eco-schemes) and regional (mainly aid for environmental and climate commitments, but also other measures under the EAFRD).

The eco-schemes are intended to respond to those needs present in general throughout the national territory for which a relatively homogeneous design response is also suitable in the territory. For those needs more specific to certain territories, or with particular characteristics or for which a differentiated territorial response is more effective, the response will come from EAFRD interventions. In addition, greater support will be given to the digital transition, innovation and knowledge transfer, as this is considered a necessary complement to the environmental transformation of farms.

There are also social challenges; through income support, security is provided to the agricultural sector, favoring the maintenance of agricultural activity with the implications this has on the maintenance of rural communities. There are also rural development measures that allow the revitalization of these areas, such as aid for the creation of companies or for basic services. In addition, the Plan will cover other aspects of a social nature that are particularly relevant in Spain, such as reducing the gender gap and supporting generational replacement. Likewise, for the first time, the social dimension is incorporated into the CAP and Spain, taking into account the importance of the presence of employees in our sector, intends to do so from 2024.

The green architecture 

This proposal for the CAP Strategic Plan represents a great step forward in the environmental ambition of this policy in Spain. 

Spain will make coordinated use, fundamentally, of three types of actions: regulatory measures not included in the CAP, but whose compliance will be reinforced by their inclusion in the reinforced cross-compliance by raising the baseline; the reinforced cross-compliance itself; and the environmental interventions of the Strategic Plan.

Specifically, the Spanish Plan proposal, in quantitative terms, represents:

1. an environmental and climate expenditure of 42.7% of the total of its CAP budget;

2. An expenditure on eco-regimes of more than 1,107 million euros per year, equivalent to 23% of Spain’s allocation for direct payments. 

3. An environmental expenditure in EAFRD of more than 47%, which means a slight increase in the current expenditure, despite the fact that in the new period aid to areas with natural limitations only counts for 50% as environmental expenditure (with the calculation criteria of the previous period the EAFRD environmental contribution was 6.76% and now it would reach 50.95%).

4. A 40% increase in the budget available for aid to organic farming.

Eco-schemes included in the Spanish Strategic Plan:

• Eco-scheme Increasing carbon sink capacity and improving biodiversity in humid grassland areas.

Annual indicative financial allocation: 103,168,071.00 euros

• Eco-scheme Increasing carbon sink capacity and improving biodiversity in Mediterranean grassland areas.

Annual indicative financial allocation: 115,305,912.00

• Eco-scheme in dry cropland

Annual indicative financial allocation: € 234,845,259.00

• Eco-scheme in rainfed wetlands

Annual indicative financial allocation: € 37,456,883.20

• Eco-scheme in irrigated cropland.

Annual indicative financial allocation: € 171,471,478.40

• Eco-scheme woodland crops on flat lands

Annual indicative financial allocation: € 73,205,212.00

• Eco-scheme woodland crops on medium slope lands

Annual indicative financial allocation: € 79,390,381.00

• Eco-scheme woodland crops on high slope lands

Annual indicative financial allocation: € 154,962,683.00

• Eco-scheme biodiversity sites on arable and permanent cropland (with sustainable irrigation management)

Annual indicative financial allocation: € 137,687,603.12

The Spanish National Plan provides that for each of these eco-schemes and landscapes a whole set of practices that farmers can follow to fit into the scheme and thus receive support. This approach allows ample flexibility to allow as many farmers as possible to fit into the eco-schemes.

Internal Convergence

Internal convergence will consist of:

Between 2022 and 2026 there will be 5 equal steps, in which, in order to reach the minimum value of 85% in each region, this threshold will be progressively increased in each step by 3%, so that in 2022 all entitlements reach at least 73% of the regional average value and 85% in 2026. Basic aid entitlements whose initial unit value is lower than the regional average value will be increased in each stage by one-tenth of the difference between their initial unit value and the regional average value.

Between 2027 and 2029, convergence will continue so that full convergence of the nominal values of entitlements to the regional average value is achieved in the aid applications corresponding to the year 2029.

Degressivity, Capping & Redistributive payment

Spain has decided to apply the redistributive payment at the regional level, using the territories established in basic income support given the structural differences. The total amount will be 10% of the budget of the First Pillar, i.e. approx. 2, 414 billion, therefore, the amount will be distributed to each region and distributed to farmers according to certain thresholds calculated taking into account the characteristics and structure of the farms and the amount available. The aid will be destined primarily to the medium-sized farms most dependent on agricultural income, without harming the more pluri-active The thresholds have been calculated, for each region, taking into account the characteristics and structure of the farms and the amount available.

Spain proposes a degressivity in the reduction of payments, with the percentages initially proposed by the European Commission, namely:

25% reduction rate from 60,000 to 75,000 euros of aid;

Reduction rate of 50% from 75,000 to 90,000 euros of aid;

Rate of reduction of 85% from 90,000 to 100,000 euros of aid.

Spain will also apply a 100% reduction to payments received above 100,000 euros.

 The amount of basic income support to be granted will be reduced by the labor costs related to agricultural activity actually paid and declared by the farmer in the previous calendar year, including taxes and social contributions related to employment. 

In any event, the maximum amount of basic income support that a farmer may receive may not exceed 200,000 euros.

The exception provided for cooperatives, Agricultural Transformation Companies and Shared Ownership Farms will be applied to degressivity and capping.

Coupled payment

Spain will devote approximately 15% of the budget for direct payments, or 3.461 billion to coupled support. The sectors that will be eligible for coupled aid are: sustainable cow’s milk production, extensive cattle ranchers, cattle ranchers fattening their calves on the farm of birth, sustainable calf fattening ranchers, extensive and semi-extensive meat production sheep and goat ranchers, sustainable sheep and goat milk production, Coupled support for extensive sheep and goat ranchers grazing fallow land, stubble or residues of horticultural crops, including extensive and semi-extensive livestock farms without available pasture, sustainable production of plant-based proteins, sustainable production of rice, sustainable production of sugar beets, sustainable production of tomatoes for processing, producers of nuts in areas at risk of desertification, traditional production of raisins.

Risk management

The strategy considered most appropriate in Spain in terms of agricultural risk management for the period 2023-2027 is based fundamentally on the maintenance and improvement of agricultural insurance as a national policy financed with State aid, complemented by specific crisis management measures aimed at certain sectors, in application of the Common Organization of Agricultural Markets.

Spain’s agricultural insurance system is one of the most developed in the world. It currently has 44 lines of insurance: 28 for agriculture, 12 for livestock, 3 for aquaculture and 1 for forestry. Among vegetable crops, the greatest degree of insurance implementation is in fruit trees, rice and extensive herbaceous crops. In livestock production, dairy cattle and laying poultry stand out.

Its subscription is voluntary, although it is incentivized by means of subsidies that reduce the cost of premiums to producers, which are granted by both the Minister of Agriculture and the Autonomous Regions (they grant aid in highly variable percentages according to territories and productions).

During the 2014-2020 period, public support for agricultural insurance is around 2,000 million euros. This figure maintains Spain as the Member State that devotes the greatest resources to agricultural risk management.

Therefore, during the next programming period, Spain intends to continue basing its risk management policy on the maintenance and improvement of The Combined Agrarian Insurance System as a national policy, financed with equally national funds.  The Combined Agrarian Insurance System in Spain is a very consolidated system with a high degree of maturity. This is a complex public-private insurance scheme. The insurance sector contributes unquestionable value through underwriting techniques and by assuming the established level of risk. The public sector plays a coordinating and planning role. In addition, the role played by the public entity Consorcio de Compensación de Seguros as the mandatory reinsurer of the system is extremely important. The leading role of the agricultural sector itself should also be emphasized.

Additionally, it is necessary to reinforce risk prevention by means of instruments which cover other less frequent eventualities, but which are more difficult to be managed by the farmer on his own. This category includes production risks associated with climate and biological factors. In this regard, climate change predictions point to agriculture as one of the sectors most affected by climate change, especially in countries located in areas of greater vulnerability, such as the Mediterranean basin. Indeed, the forecasts point to a trend towards a decrease in rainfall and an increase in temperature in a large part of Spain, which will lead to a reduction in yields and, therefore, in agricultural profitability. Likewise, an increase in the volatility of production is foreseeable due to the greater frequency of extreme weather events such as drought, heat waves or hail. For this reason, risk management policy must also aim to improve the gradual adaptation of farms to the effects of climate change. In this sense, agricultural insurance is a useful tool to enable such adaptation, as stated in the National Plan for Adaptation to Climate Change.

March 7^th, 2022

The Russian invasion of Ukraine has brought war back to European soil, and its dramatic consequences are unfolding under our eyes.

Ukraine and Russia are world top exporters of grains – wheat, maize, sunflower. The war is blocking exports from the Black Sea, where over 10 million tons of grain can no longer feed world markets. What will happen to the next campaign is anyone’s guess. The effects are already being felt, as grain prices attain ever higher levels.

EU consumers will have to pay more for their food basket, on top of the recent sprawling inflationary pressures. EU meat producers are paying more to feed their livestock. In parts of the Middle-East and Africa the inflation in grain prices is going to afflict legions of poor dwellers.

The war brings pain, but it is also a wake-up call to the EU. It is by now crystal clear to Europeans that they have to improve their energy sovereignty, and be less dependent on imports from Russia.

It should also be crystal clear that the EU should ensure its food sovereignty. Energy and food independence are crucial strategic pillars. We should not put our food supplies in danger, and we should be concerned that neighbors countries and poor countries in Africa do not face starvation.  

This should be a wake-up call to the Commission. The Commission proposals on the Farm to Fork and Biodiversity strategies run frontally counter our food sovereignty and world food security. All the studies and analysis done on the proposals, including the one done by the Commission itself, show staggering results: supply is reduced by more than 10-15% in the key sectors, cereals, oilseeds, beef, dairy cows; over 15% in pork and poultry, and over 5% in vegetables and permanent crops. All the analysis published show similar results, leaving little doubt that we would face a sharp policy self-inflicted contraction of agriculture in the EU.

The EU shouldn’t pursue a policy that reduces its agriculture production when globalization and security of supplies are challenged, and world demand for food and feed is increasing as the world population increases. 

The time has come for the Commission to fundamentally revise its proposals.

Fighting climate change and protecting the environment are priorities that we share. The issue we have is not on implementing policies that go in that direction. The issue is that the Commission proposed policies would have a limited beneficial impact on the environment, as production would go up elsewhere to compensate for the contraction in the EU, with little if any climatic or environmental concerns, whilst having a large negative impact on our food production and increasing inflation.

There are alternative policies that would protect the environment and fight climate change, and increase our production potential at the same time. The key is to foster the right investments in order to achieve sustainable productivity growth. It is doable, it is being proven right, but we need to scale up the efforts in the EU.

The Commission should take stock of the evaluations of its ill-conceived proposals, and change tack without delay. The Commission should not make any specific legislative proposals before revising its copy.

Farm Europe is involved in a Horizon 2020 research program, called ‘Plastic in Agricultural Production: Impacts, Life-cycle and LONg-term Sustainability’ (PAPILLONS), which has been launched to explore the impacts of micro-nano plastics in agricultural soils, which represent a key issue for the future of the sustainability and competitiveness of European agriculture. This project gathers universities, research institutes and think tanks.

To learn more about the project itself, please click on the link attached here: https://cordis.europa.eu/project/id/101000210 

(The project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 101000210)

The PAPILLONS team is committed to deliver knowledge and data on the behaviour of agricultural plastic fragments in the form of micro- and possibly nano-plastic in agricultural soils and on the potential long-term effects this pollution may have on the farm soil ecosystem. For this, PAPILLONS will conduct (among other types of experimental activity) a large field-scale experiment taking place simultaneously in 3 regions of Europe. This will be carried out between 2022 and 2023. The aim of this experiment is to study the potential effects of mulching film residues on soil ecosystems and their agricultural production.

This call is intended to openly disclose relevant information with the stakeholders of the PAPILLONS project with respect to the above mentioned field experiment, and offer the stakeholders the opportunity to give feedback on the exposure scenario and the treatment levels. By presenting the experimental design in advance, PAPILLONS offers stakeholders the possibility of commenting and providing feedback and ideas prior to execution. These will be considered if they contribute to add quality, meaningfulness and objectivity to the experiment, and if their implementation is technically and economically feasible.

For more information on the objective, background, context and scientific question behind the experiment please consult the attached document or visit our website to find the full document online and leave us a message with your feedback here.

For further information concerning the large field-scale experiment please contact papillons@niva.no

March 1st, 2022

Yesterday, the European Food Safety Authority (EFSA), published its scientific opinion on Tolerable Upper Intake Level of dietary sugars^[1], i.e. a maximum level of intake that would not harm the health of consumers, responding to the request of five Nordic countries (Denmark, Finland, Sweden, Iceland & Norway). Upper levels (UL) have already been defined by EFSA for some micro^[2] & macro nutrients such as dietary fibres, fats, proteins, etc^[3]. 

In its opinion, EFSA argues that an upper level of intake for sugar could not be defined (as a specific threshold), but it recommends to keep the sugar intake “as low as possible”. This formulation encounters at least two main fallouts: 

Firstly, it allows for the interpretation that there is no safe level of sugar intake, thus, sugar has to be avoided at any cost, no matter of the quantity, which is a breach of the basic good sense nutrition principle of a balance diet. EFSA underlines that the analysed studies and systemic reviews on the relation of sugar on health converge on an assumed linear correlation, and not an “S” shape curve: an upper level, therefore a safe area, cannot be determined.

Nevertheless, EFSA itself states in its scientific opinion that “at levels of added and free sugars intake below 10E% uncertainty is high regarding the shape and direction of the relationships between added and free sugars intake and the risk of metabolic diseases”. This statement should clear out any doubts on the fact that scientific evidence finds that below a certain -indicative- threshold of sugary total energy intake, the negative health effects cannot be directly linked to sugar, but are the outcome of many factors. This statement contradicts the linear approach and shows ultimately, that at this stage, in issuing the statement “as low as possible”, the institution is making politics rather than science, issuing communication headlines rather than providing guidelines for health authorities. 

Communication headlines rather than health guidelines

Secondly, EFSA formulation does not give any concrete guidelines for national authorities for the update of dietary guidelines, thus the definition of nutrient profiles. After having analysed dozens of scientific publications and reviews on the topic, updated its food database (Foodex2), consulted with stakeholders, “as low as possible” is the easy way out and does not help to face growing of health problems both in European adults and children.

Other institutions (international and national bodies) managed to already set their upper limits -which, as the EFSA reminds, is not a target that we should aim to, but rather a maximum threshold above which health risks increase. 

Moreover, EFSA itself already defined some specific thresholds and safe ranges for other nutrients such as salt^[4](2.0 g/day of sodium), fats^[5] (a daily intake that ranges from 20% to 35% of energy), carbohydrates (ranges from 45 to 60% of total energies), and dietary fibres (25g/day)^[6] using a similar methodology of the one used for its analysis on sugar. 

Further work by EFSA needed 

As a result, EFSA’s statement on sugar UL does not define specific safety levels of sugar intakes. This may lead public health authorities (in charge of developing dietary guidelines), food processors and consumers (who want to improve their products & health) to confusion. Therefore, we consider EFSA should address this point and deepen its work on this issue. This is important considering that the publication of the scientific opinion of the European Food Safety Authority on Upper Tolerable Intakes of sugars might be useful in the context of the revision of the FIC regulation (Food Information to Consumer). But at this stage, it is simply impossible to use it as a foundation for a sound and well-informed public health policy.  

Background

The general approach for EFSA to establish a UL includes the analysis of wide datasets and scientific literature after which a “S-shape” graph (such as the one on the side) is used to graphically expose the correlation between the nutrient intake and the health risks. As it can be seen, there is a “safe range” within which the amounts of nutrient intake are considered safe; beyond this range, negative health effects will start to arise according to the scientific literature. The Upper Level corresponds to the last amount of nutrient intake above which negative health effects start to manifest. 

The safe range varies according to the nutrient and it is calculated as a weighted average of the dataset and scientific literature on the subject. For dietary sugars, EFSA points out that such curve is impossible to make because the correlation is assumed to be linear at this stage, thus, a safe range cannot be determined. But data from 0 – 10 E% of intake is not sufficient (highly uncertain) to support this linear conclusion.

^[1] https://efsa.onlinelibrary.wiley.com/doi/epdf/10.2903/j.efsa.2022.7074

^[2] https://www.efsa.europa.eu/sites/default/files/assets/UL_Summary_tables.pdf

^[3] https://www.efsa.europa.eu/sites/default/files/2017_09_DRVs_summary_report.pdf

^[4] https://www.efsa.europa.eu/en/efsajournal/pub/5778

^[5] https://www.efsa.europa.eu/fr/efsajournal/pub/1461

^[6] https://www.efsa.europa.eu/fr/efsajournal/pub/1462

Strategic priorities

In Poland, rural and agricultural areas occupy 85% and 52% of the country, respectively. Rural areas are inhabited by approximately 15 million people, 38% of Poland’s total population. There are approximately 1.4 million farms throughout the country. The main sectors are dairy, cereals, pigs, poultry and horticulture. Agriculture in Poland is characterized by a large share of farms of small economic size and there are significant income disparities. The Polish Strategic Plan of the Common Agricultural Policy will support sustainable development of farms, the processing sector and improvement of living and working conditions in small rural areas. The NSP will support as well, sustainable, climate and environmentally friendly farming methods that protect water, soil and air, and biodiversity. It will encourage sustainable energy production and use. Economic diversity will be enhanced, including the bioeconomy. Scientific and innovative solutions, including digital solutions, will be disseminated and implemented, removing barriers to development in rural areas.

The budget for the strategic plan in Poland is more than €25 billion for 2023-2027, of which more than €17 billion is allocated to direct payments after the transfer of 30% from the second pillar. The allocation of the second pillar is about 8 billion euros. Since the “tools that improve farmers’ income are direct payments”, the Polish government decided to strengthen it by transferring funds from Pillar II to Pillar I.

Basic Income Support and Redistributive Payment

Approximately €8 Billion is planned for Basic income support for 2023-2027 which accounts for 47.36% of the direct payment envelope.

Estimated rate is approx. 118 EUR/ha. 

Payment reduction (capping) will not be applied. 

In the case of Poland, priority in supporting agricultural activity under the Strategic Plan is given to small and medium-sized farms with an area of up to 25-30 hectares. Therefore, the redistributive payment is intended for farms with an area of up to 50 hectares, but support will be paid up to a maximum of 30 hectares – i.e. farms with an area of 30 hectares will benefit most (in terms of average payment per hectare on a farm) from this type of payment. A total of approximately 2 billion euros is planned for the redistributive payment between 2023 and 2027, representing 11.57% of the direct payments envelope. Estimated rate approx. 44 EUR/ha. Maximum rate approx. 48.5 EUR/ha.

The green architecture 

The green architecture of the Polish NSP establishes a number of measures in both pillars to encourage farmers to adopt pro-environmental farming practices. Most significantly, in Pillar I, eco-schemes are voluntary payment schemes for farmers who implement environmentally and climate beneficial practices that go beyond the requirements established by cross-compliance. This tool is designed to realize environmental benefits to the greatest extent possible, while encouraging farmers to actively engage in the implementation of environmental and climate protection measures.

In the Polish NSP, it is estimated the payment values of each eco-scheme per hectare, through an estimate of how many farmers will be interested to join each eco-scheme. Obviously, the figure may change depending on the number of adherents. In the Polish NSP, the planned eco-schemes are:

– Mixing manure on arable land within 12 hours of application Estimated rate: 89,44 Euro/ha.

– Application of liquid manure by methods other than splashing Estimated rate: 65,39 Euro/ha.

–Maintenance of mid-field afforestation Estimated rate: 560,45 Euro/ha.

-Maintenance of agro-forestry systems It is estimated that approximately 3.9 thousand ha will be covered by the support.

-Simplified farming system The aim of this eco-scheme is to support conservation tillage, to preserve natural resources while achieving satisfactory yields. Estimated rate: 125.62 Euro/ha.

-Winter catch crops/intercrops Estimated rate: 176,63 Euro/ha.

-Water retention on permanent grassland Estimated rate: 63,15 Euro/ha.

– 7% of the farm’s land to non-productive areas Estimated rate: 19,10 Euro/ha.

-Organic farming (Different estimated rates depending of crops, for example: Berry crops, 560,67 EUR/ha, Extensive orchard crops: 297.98 EUR/ha).

-Diversified cropping pattern Estimated rate: 76,18 Euro/ha.

– System of Integrated Plant Production Estimated rate: 292,13 Euro/ha.

-Development of and adherence to a fertilization plan Estimated Rate 28,99 Euro/ha.

-Biological crop protection Estimated rate: 89,89 Euro/ha

-Areas with melliferous plants Estimated rate: 269,21 Euro/ha.

 -Animal Welfare Estimated rate varies greatly depending on practices and animal

–Density of grassland animals Estimated rate: 188,31 Euro/ha.

Pillar II multi-year pro-environmental commitments are the most ambitious element of the Polish CAP’s green architecture. The requirements for these actions go beyond cross-compliance and relevant national and EU legislation and do not overlap with the range of practices covered by ecoschemes. They will be voluntary for the farmer.

The planned multi-year agro-climatic-environmental interventions are, among others: Protection of valuable habitats and endangered species in Natura 2000 areas ; Preservation of valuable habitats and endangered species outside Natura 2000 areas ; Extensive use of meadows and pastures in Natura 2000 areas ; Preservation of orchards of traditional varieties of fruit trees ; Multi-year flower strips; Conservation of plant genetic resources in agriculture,Conservation of endangered animal genetic resources in agriculture ; Young orchards of traditional varieties. Other interventions that will meet environmental and climate objectives will be the interventions on forests and woodlands. These will be investments that help mitigate climate change and maintain and improve the ecological stability of forest areas, linking, among other things, fragmented forest complexes into compact and continuous landscape structures, the so-called ecological corridors. The creation of afforestation, tree plantations, and agroforestry systems will have a significant impact on water retention in the soil profile and improved water quality. It will also contribute to increased biodiversity in rural areas, as trees and shrubs provide habitat for many organisms and a food base for, for example, birds and pollinating insects. 

Coupled payment

The Polish NSP provides the maximum rate for coupled payments, which is 15%. The sectors that will receive the coupled payment are: Cow; young cattle; sheep; goat; sugar beet; hops; flax; fibre hemp; strawberries; tomatoes; starch potatoes; fodder crops; grain legumes.

Young farmers

The strategic plan provides investment support for start-ups under Pillar 2 and up to five years of support for young farmers’ farm acreage under Pillar 1. 

Although the age structure of farmers in Poland is favorable compared to other EU member states, the share of young farmers in the total number of farm managers is declining, as in other EU member states. A total of approximately €185.3 million is planned for Pillar I payments between 2023 and 2027, representing 1.07% of the direct payments envelope.