EU’s new farming policy focuses on future food, pushes to propel organics and plant protein

01 Sep 2022 --- The first batch of Common Agricultural Policy plans focusing on increasing organic farming, green and biodiversity objectives and even plant protein have been greenlighted by the European Commission. The EC has approved the first package of CAP strategic plans for seven EU countries amid the Ukraine war that has stressed food producers and a myriad of climate-related challenges, as well as the bite of inflation.

The new CAPs are set for the 2023 to 2027 period, with the seven countries – Denmark, Finland, France, Ireland, Poland, Portugal, and Spain – that have an approved plan representing 44.4% of the total budget.

“Farmers are facing a challenging environment, marked by the sharp increase in production costs due to the Russian aggression in Ukraine, as well as the recent summer drought. Farming is a long-term business and European farmers need to have a clear legal and financial framework for the future,” says Agriculture Commissioner Janusz Wojciechowski.

“The new CAP will help us to support stable farming livelihoods and long-term food security by fostering a smart, competitive, resilient and diversified agricultural sector,” he continues.

Wojciechowski affirms that the plans for the other member states will be approved soon.

The EC has approved the new plans as the World Food Programme warns of a looming food affordability crisis in 2023, as key agricultural products like fertilizers have doubled in cost.

The war in Ukraine has already modified CAP rules involving crop rotation and the maintenance of non-productive features on arable land to maximize cereal production. Farmers will not need to have 4% of their crops destined for biodiversity purposes by 2023, being delayed until 2024.

However, there is a mixed reaction to the CAP approvals with Irish Farmers’ Association (IFA) dubbing it a step in the wrong direction that will undermine food production.

“The new Eco Schemes which are funded by a 25% cut from each farmers basic payment is a step too far. The impact of the Eco schemes along with further convergence, front loading and greater conditionality will hit a cohort of our most productive farmers the hardest,” he says.

“The Eco Scheme measures themselves are designed for low output or to reduce output and will not be practical for many farmers.”

Wojciechowski affirms that the plans for the other member states will be approved soon.France and Denmark invest in plant protein
One of the focuses found in the French and Danish strategic plans is the investment in plant protein production.

In the case of France, 15% of the direct payment budget (part of the US$34.32 billion budget) will be dedicated to sector-specific support linked to production, which, among others, targets protein plant production.

One example of the French CAP investment in the development of plant proteins is that farms that combine growing legumes and livestock can receive additional support, with the budget for these measures increasing by 70% compared to 2020.

Denmark will promote plant proteins by using bio-refineries to extract the protein from grass produced regionally. 

“The refineries will have the potential to reduce dependence on imported soya and respond to climate commitments which have been made,” according to the plan.

Organic farming
According to the EC, most countries aim to double “or even triple” their organic farming areas by 2030.

One of the most ambitious targets is set by Ireland, which will invest US$256 million

to triple its organic farmland. France, Denmark and Poland plan to double their terrains dedicated to organic farming. Spain plans to reach 20% of organic farmland by the decade’s end, similar to Portugal’s 19% objective.

The EC planned to reach 25% organic farms by 2030, but as IFOAM Organics Europe flagged in June, most countries are off-target, with the new CAP plans confirming that some countries are not even setting 25% as a target anymore. 

Interest in organic, nonetheless, is strong in Europe. According to Innova Market Insights, organic claims are established in new launches, mainly driven by the growing movement toward more ethical and sustainable lifestyles. Europe leads the organic movement by having 15.2% of organic product launches, followed by the 13.4% of North America – 2020 data reveals.

Meanwhile, biodiversity remains in focus in European CAP plans. Poland, for example, wants to support 30,000 hectares of honey plants to improve pollination and bee biodiversity.For the seven countries, climate and environmental objectives will entail between 43% and 67% of all the rural development funds.

“Between 86% and 97% of the national utilized agricultural area will be farmed under good agricultural and environmental conditions,” according to the EC. Requiring a minimum level of maintenance, water management and soil care (concerning erosion, organic matter and structure).

For the seven countries, climate and environmental objectives will entail between 43% and 67% of all the rural development funds.

Fertilizer updates
In its biodiversity efforts, France will reward farmers that ban the use of pesticides, use adapted fertilization and perform grazing management.

Ireland and Poland will create buffer zones along watercourses, where the use of all types of fertilizers and plant protection products will be restricted.

Poland will invest more than €830 million (US$832 million) in farmers that commit to actions such as carbon sequestration, organic fertilization, organic farming and integrated production.

By Marc Cervera