The Future of Agriculture in the European Community

THE FUTURE OF AGRICULTURE IN THE EUROPEAN COMMUNITY Lord Plumb ofColeshill x.he uncertainties facing European agriculture have rarely been greater. The reform ofthe Common Agricultural Policy (cap), die new international trading mies ofdie recendy completed General Agreement on Tariffs and Trade (gatt) negotiations, and die impact of die opening of die Central and Eastern European agriculture markets have presented a greater set of challenges to European agriculture dian at any odier time in diis century. European agriculture, however, has changed a great deal over the past diirty years. Today, farmers no longer produce foodstuffs just to ensure sufficient supplies; they must respond to the increasing demands ofconsumers for quality, safety, and value for money. How can European agriculture meet these changing demands? How should agricultural policy be reformed to meet the challenges oftoday's society? CAP Reform The Common Agricultural Policy was first put into practice in die early 1960s. Then it was seen as a miracle ofEuropean cooperation and a force for further integration. It was undoubtedly a great achievement to create and maintain a unified support system for farming across the incredible diversity of twelve nations during diree decades ofremarkable change in die European and world economies. Lord Plumb ofColeshill served as president ofdie European Parliament from 1987 to 1989 and has been a member of the European Parliament since 1979. In die nineteen seventies, Lord Plumb was president of die National Farmers' Union of England and Wales and die Royal Agricultural Society ofEngland. He has also served as president ofdie International Federation ofAgricultural Producers and die Comité des Organisations Professionnelles Agricoles de la CEE. 53 54 SAIS Review WINTER-SPRING 1994 Very early in the cap's existence, diough, it was clear diat it had shortcomings. Pressure for its reform came from two fronts. Within die European Community the cap was blamed for die leveling out or dropping of incomes in some of Europe's major farming regions. As farmers' productivity increased, so did the surpluses offood. Also, die cap placed too high a burden on die EC budget, requiring diat large sums be spent on surplus food storage and on export restitution measures. It was also criticized for damaging the environment Outside die EC die cap was increasingly seen as an obstacle to improved trade relations widiin die context ofdie GATT negotiations. To some countries, die CAP represented the exemplar ofEuropean protectionism. The purpose of die 1992 cap reform was to adapt, albeit belatedly, the cap's market structures to the changed realities of European farming and die demands ofEurope's trading partners. The high and stable price regime ofdie CAP has encouraged die development of large-scale, capital intensive forms of agriculture diat, as many people say, have damaged rural landscapes, destroyed valuable natural habitats, polluted water courses, encouraged insensitive treatment of farm animals, and threatened die social fabric of rural areas. The particular issue and the degree ofconcern varies gready from country to country. Pollution issues are vigorously pursued in Denmark and the Nedierlands, animal welfare is high on the agenda in die United Kingdom, while Germany is concerned greadywidi pesticide residues and die risks attached to biotechnology. For die first time die CAP includes measures intended to alleviate die pressure of farming on the environment. These include set aside measures, incentives for the use ofmore environmentally friendly farmingtechniques, and die reduction of prices in the arable sector widi die intent of reducing die intensity of soil cultivation. It is hoped diat diese initiatives can be expanded. The environment is probably die most important issue farmers will have to address in order to improve dieir image. The ultimate objective has to be to keep as many farmers as possible on the land, while ensuring that dieir method offood production adequately cares for the environment. Fünfter Reform? And More Challenges Our experience in attempting to agree on reform of the cap reminds us diat ifone wants to leap over an abyss, it is wise not to do it in two steps. But while die 1992 reform includes many positive changes, a number ofproblems continue to persist and must be addressed. The administrative burden ofthe cap, for example, continues to grow. Farmers dislike die...