BETA


2016/2034(INI) CAP tools to reduce price volatility in agricultural markets

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead AGRI DELAHAYE Angélique (icon: PPE PPE) CAPUTO Nicola (icon: S&D S&D), DOHRMANN Jørn (icon: ECR ECR), JAKOVČIĆ Ivan (icon: ALDE ALDE), FLANAGAN Luke Ming (icon: GUE/NGL GUE/NGL), BOVÉ José (icon: Verts/ALE Verts/ALE)
Committee Opinion BUDG ALI Nedzhmi (icon: ALDE ALDE) Sophie MONTEL (icon: ENF ENF), Patricija ŠULIN (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2017/07/04
   EC - Commission response to text adopted in plenary
Documents
2016/12/14
   EP - Results of vote in Parliament
2016/12/14
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 445 votes to 148 with 89 abstentions, a resolution on CAP tools to reduce price volatility in agricultural markets.

Members recalled that instability and price volatility have always characterised agricultural markets. Price volatility is damaging to farming and the agri-food sectors, which is detrimental to investment, growth and employment.

Farmers will be increasingly exposed to price volatility, arising from various causes such as the instability and imperfection of agricultural markets, the globalisation and sophistication of agricultural markets, greater variability of supply due to climatic instability and increased health risks.

Current situation and objectives : the European Union does not currently have a genuine safety net to curb market volatility. While the European Union is scaling back its strategic support for agriculture, its competitors on the world market, notably the United States, Brazil and China, make available very considerable, and increasing, sums of public money for developing new risk-policy models.

Given the increased exposure to price volatility, Members deemed it necessary to adopt a more incisive and coherent policy , with targeted instruments at EU and national in order to secure multifunctional, sustainable agricultural production throughout the Union along with fair and remunerative prices.

In this regard, they recommended:

that current second-pillar measures should be reinforced in order to enhance the competitiveness of European agriculture and to involve producers’ organisations closely in the implementation process; maintaining decoupled direct aids under the current CAP together with the single area payment scheme, which constitute compensation for public services and a vital component in securing the income of farmers and providing them with a degree of financial stability

The Commission is called upon to:

conduct an in-depth analysis of the reasons for both the weak uptake of the tools available under the second pillar of the CAP and the sub-optimal implementation of the single CMO, with the purpose of reviewing the relevant provisions accordingly; take urgent action to support the agricultural sector of the outermost, mountainous and less favoured regions.

Sectoral organisation and contractual systems : primary producers are the weakest link in the food supply chain and must be permitted to come together in bodies such as cooperatives, producers’ organisations, or their own associations or inter-branch organisations.

Members called on the Commission to facilitate the introduction of contractual systems by adjusting EU competition policy to the specific needs of the agricultural sector, with uniform rules and implementation in all Member States.

The negotiating power of producers must be strengthened through collectively negotiated contracts, in order to place farmers in a position to counter unfair trading practices, improve their income stability, generate added value and invest in innovation. Those contracts should be of adequate duration and should lay down the prices, payment periods and other terms for the supply of agricultural products.

The Commission is called upon to:

set up an EU legislative framework forbidding unfair trading practices in the food supply chain that can create price volatility on agricultural markets; encourage EU-level inter-branch organisations to jointly defend the interests of producers; foster the exchange of best practices between Member States and to develop new tools in order to prevent and manage the risks associated with price volatility and thus to lay the foundations for discussion of the future reforms of the CAP; set up sectorial managed mutual funds, while guaranteeing that any future risk management scheme must comply with, and where necessary complete, insurance systems adopted at national level by Member States; adopt an awareness-raising plan on the risk management tools available within Pillar II of the CAP and in the single CMO.

Moreover, Members considered that price volatility can also be managed at national level, and invited the Member States to take into account market volatility in their tax rules by allowing farmers to create individual provision mechanisms that could be tax-free.

Agricultural market and price observatories : Parliament stressed that agricultural markets must be transparent, which can principally be achieved by making the publication of existing information on prices and costs more timely, easily accessible and useful to all stakeholders in the supply chain, from production to distribution, thus limiting price speculation and price volatility.

The resolution also recommended:

Members also:

the creation of a European map with real-time information on the availability of agricultural products; the establishment of European agricultural price observatories, covering the entire chain, from the producer price to the final selling price; the involvement of economic stakeholders when making up-to-date and relevant data on movements and short- and medium-term forecasts available at monthly or bi-monthly intervals corresponding to the specific needs of the relevant sector.

Crisis prevention and management tools : Parliament stated that the traditional CAP crisis management tools (public intervention and private storage) are not sufficiently effective in a globalised economy. Therefore, it called on the Commission to:

develop combinable and/or complementary public- and private-sector tools, together with a tailored, binding early warning mechanism in order to ensure the proper functioning of markets and counteract market crises; use all the tools already at its disposal in the single CMO to fight crises; conduct a study on how to develop mechanisms to prevent and combat crises due to price volatility using countercyclical aids, and to provide for greater flexibility in the annual budgets in order to take account of these aids.

Lastly, Parliament regretted the low use of the crisis reserve and to the discretion that the Commission enjoys when it comes to releasing funds from the reserve. Therefore, it called for the crisis reserve to be constituted outside the EU budget and for it to serve as source of funding for crisis management tools.

Documents
2016/12/14
   EP - End of procedure in Parliament
2016/12/13
   EP - Debate in Parliament
2016/11/16
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Agriculture and Rural Development adopted the own-initiative report by Angélique DELAHAYE (EPP, FR) on CAP tools to reduce price volatility in agricultural markets.

The report recalled that instability and price volatility have always characterised agricultural markets. Price volatility is damaging to farming and the agri-food sectors, which is detrimental to investment, growth and employment.

Current situation and objectives : the European Union does not currently have a genuine safety net to curb market volatility. Noting that farmers will be increasingly exposed to price volatility, Members deemed it necessary to adopt a more incisive and coherent policy , with targeted instruments at EU and national level.

In this regard, they recommended that current second-pillar measures be reinforced in order to enhance the competitiveness of European agriculture and to involve producers’ organisations closely in the implementation process.

The Commission is called upon to:

conduct an in-depth analysis of the reasons for both the weak uptake of the tools available under the second pillar of the CAP and the sub-optimal implementation of the single CMO, with the purpose of reviewing the relevant provisions accordingly; take urgent action to support the agricultural sector of the outermost, mountainous and less favoured regions.

Members underlined the importance of maintaining decoupled direct aids under the current CAP together with the single area payment scheme , which constitute compensation for public services and a vital component in securing the income of farmers and providing them with a degree of financial stability.

Sectoral organisation and contractual systems : Members considered that primary producers are the weakest link in the food supply chain and must be permitted to come together in bodies such as cooperatives, producers’ organisations, or their own associations or inter-branch organisations.

Members called on the Commission to facilitate the introduction of contractual systems by adjusting EU competition policy to the specific needs of the agricultural sector , with uniform rules and implementation in all Member States.

The negotiating power of producers must be strengthened through collectively negotiated contracts, in order to place farmers in a position to counter unfair trading practices, improve their income stability, generate added value and invest in innovation.

The Commission is called upon to:

encourage EU-level inter-branch organisations to jointly defend the interests of producers; foster the exchange of best practices between Member States and to develop new tools in order to prevent and manage the risks associated with price volatility and thus to lay the foundations for discussion of the future reforms of the CAP; set up sectorial managed mutual funds, while guaranteeing that any future risk management scheme must comply with, and where necessary complete, insurance systems adopted at national level by Member States.

Moreover, Members considered that price volatility can also be managed at national level, and invited the Member States to take into account market volatility in their tax rules by allowing farmers to create individual provision mechanisms that could be tax-free .

Agricultural market and price observatories : the report stressed that agricultural markets must be transparent, which can principally be achieved by making the publication of existing information on prices and costs more timely, easily accessible and useful to all stakeholders in the supply chain, from production to distribution, thus limiting price speculation and price volatility.

Members also:

encouraged the creation of a European map with real-time information on the availability of agricultural products; recommended the establishment of European agricultural price observatories , covering the entire chain, from the producer price to the final selling price;

Crisis prevention and management tools : Members stated that the traditional CAP crisis management tools (public intervention and private storage) are not sufficiently effective in a globalised economy. Therefore, they called on the Commission to:

develop combinable and/or complementary public- and private-sector tools , together with a tailored, binding early warning mechanism in order to ensure the proper functioning of markets and counteract market crises; use all the tools already at its disposal in the single CMO to fight crises; conduct a study on how to develop mechanisms to prevent and combat crises due to price volatility using countercyclical aids, and to provide for greater flexibility in the annual budgets in order to take account of these aids.

Lastly, the report regretted the low use of the crisis reserve and to the discretion that the Commission enjoys when it comes to releasing funds from the reserve. Therefore, it called for the crisis reserve to be constituted outside the EU budget and for it to serve as source of funding for crisis management tools.

Documents
2016/11/08
   EP - Vote in committee, 1st reading/single reading
2016/09/07
   EP - Committee opinion
Documents
2016/07/20
   EP - Amendments tabled in committee
Documents
2016/05/09
   EP - Committee draft report
Documents
2016/03/16
   EP - ALI Nedzhmi (ALDE) appointed as rapporteur in BUDG
2016/03/10
   EP - Committee referral announced in Parliament, 1st reading/single reading
2016/01/11
   EP - DELAHAYE Angélique (PPE) appointed as rapporteur in AGRI

Documents

Activities

Votes

A8-0339/2016 - Angélique Delahaye - Considérant G

2016/12/14 Outcome: +: 647, 0: 36, -: 9
DE FR IT PL ES RO GB PT BE HU CZ NL SE AT BG EL FI DK SK HR LT IE SI LU LV EE MT CY
Total
85
69
67
49
48
29
59
21
21
20
21
26
20
18
16
20
12
12
12
11
10
10
8
6
6
6
5
4
icon: PPE PPE
203

Belgium PPE

Abstain (1)

4

Denmark PPE

For (1)

1

Luxembourg PPE

3

Estonia PPE

For (1)

1

Malta PPE

2

Cyprus PPE

1
icon: S&D S&D
180

Netherlands S&D

3
3
3

Croatia S&D

2

Ireland S&D

For (1)

1

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Latvia S&D

1

Estonia S&D

For (1)

1

Malta S&D

3

Cyprus S&D

2
icon: ALDE ALDE
64

Romania ALDE

2

United Kingdom ALDE

1

Portugal ALDE

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Ireland ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

Abstain (1)

3
icon: ECR ECR
65

Italy ECR

2

Romania ECR

For (1)

1

Czechia ECR

2

Netherlands ECR

2

Bulgaria ECR

2

Greece ECR

For (1)

1
2

Croatia ECR

For (1)

1

Lithuania ECR

1
icon: Verts/ALE Verts/ALE
47

Belgium Verts/ALE

2

Hungary Verts/ALE

2

Netherlands Verts/ALE

2

Austria Verts/ALE

3

Denmark Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Estonia Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
45

Netherlands GUE/NGL

3

Sweden GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Cyprus GUE/NGL

1
icon: ENF ENF
38

Germany ENF

For (1)

1

Poland ENF

For (1)

1

Romania ENF

1

United Kingdom ENF

Against (1)

1

Belgium ENF

For (1)

1

Netherlands ENF

4
icon: EFDD EFDD
33

France EFDD

1

Poland EFDD

1

Czechia EFDD

Abstain (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1
icon: NI NI
16

Germany NI

Against (1)

2

France NI

2

Italy NI

For (1)

1

Poland NI

1

United Kingdom NI

For (1)

Against (2)

3

Hungary NI

2

A8-0339/2016 - Angélique Delahaye - Résolution

2016/12/14 Outcome: +: 445, -: 148, 0: 89
IT DE RO PL ES HU BG PT AT CZ BE SK HR FR LT NL FI SI LU MT EE LV GB IE CY DK SE EL
Total
66
82
29
49
47
20
15
21
18
21
20
12
11
69
10
25
12
8
6
5
6
6
59
10
4
11
19
20
icon: PPE PPE
199

Luxembourg PPE

3

Malta PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

1

Denmark PPE

For (1)

1
icon: S&D S&D
175
3
3

Croatia S&D

2

Netherlands S&D

3

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Malta S&D

3

Estonia S&D

For (1)

1

Latvia S&D

1

Ireland S&D

For (1)

1

Cyprus S&D

2
3
icon: ALDE ALDE
63

Romania ALDE

3

Portugal ALDE

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

United Kingdom ALDE

1

Ireland ALDE

For (1)

1

Denmark ALDE

2

Sweden ALDE

Abstain (1)

3
icon: ECR ECR
63

Italy ECR

2

Romania ECR

For (1)

1

Bulgaria ECR

Abstain (1)

1

Czechia ECR

2

Slovakia ECR

3

Croatia ECR

Abstain (1)

1

Lithuania ECR

Abstain (1)

1

Netherlands ECR

2

Finland ECR

Abstain (1)

1

Greece ECR

Against (1)

1
icon: NI NI
16

Italy NI

For (1)

1

Germany NI

For (1)

Against (1)

2

Poland NI

Against (1)

1

Hungary NI

2

France NI

Against (1)

2

United Kingdom NI

Against (2)

Abstain (1)

3
icon: EFDD EFDD
32

Poland EFDD

1

Czechia EFDD

Against (1)

1

France EFDD

1

Lithuania EFDD

For (1)

1

Sweden EFDD

2
icon: ENF ENF
38

Germany ENF

Against (1)

1

Romania ENF

Abstain (1)

1

Poland ENF

Against (1)

1

Belgium ENF

Abstain (1)

1

Netherlands ENF

4

United Kingdom ENF

Against (1)

1
icon: GUE/NGL GUE/NGL
46

Italy GUE/NGL

3

Netherlands GUE/NGL

3

Finland GUE/NGL

Against (1)

1
4

Cyprus GUE/NGL

Against (1)

1

Denmark GUE/NGL

Against (1)

1

Sweden GUE/NGL

Against (1)

1
icon: Verts/ALE Verts/ALE
49

Hungary Verts/ALE

2

Austria Verts/ALE

3

Belgium Verts/ALE

2

Croatia Verts/ALE

Abstain (1)

1

Lithuania Verts/ALE

Abstain (1)

1

Netherlands Verts/ALE

2

Finland Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

Abstain (1)

1

Estonia Verts/ALE

Against (1)

1

Latvia Verts/ALE

Against (1)

1

United Kingdom Verts/ALE

6

Denmark Verts/ALE

Against (1)

1
AmendmentsDossier
442 2016/2034(INI)
2016/06/21 AGRI 391 amendments...
source: 584.243
2016/06/23 BUDG 51 amendments...
source: 585.507

History

(these mark the time of scraping, not the official date of the change)

committees/0
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committee
AGRI
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rapporteur
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docs/3/body
EC
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Old
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New
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activities
  • date: 2016-03-10T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: S&D name: CAPUTO Nicola group: ECR name: DOHRMANN Jørn group: ALDE name: JAKOVČIĆ Ivan group: GUE/NGL name: FLANAGAN Luke Ming group: Verts/ALE name: BOVÉ José responsible: True committee: AGRI date: 2016-01-11T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: EPP name: DELAHAYE Angélique body: EP responsible: False committee: BUDG date: 2016-03-16T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: ALI Nedzhmi
  • date: 2016-11-08T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: S&D name: CAPUTO Nicola group: ECR name: DOHRMANN Jørn group: ALDE name: JAKOVČIĆ Ivan group: GUE/NGL name: FLANAGAN Luke Ming group: Verts/ALE name: BOVÉ José responsible: True committee: AGRI date: 2016-01-11T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: EPP name: DELAHAYE Angélique body: EP responsible: False committee: BUDG date: 2016-03-16T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: ALI Nedzhmi
  • date: 2016-11-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0339&language=EN type: Committee report tabled for plenary, single reading title: A8-0339/2016 body: EP type: Committee report tabled for plenary, single reading
  • date: 2016-12-13T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20161213&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2016-12-14T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0504 type: Decision by Parliament, 1st reading/single reading title: T8-0504/2016 body: EP type: Decision by Parliament, 1st reading/single reading
commission
  • body: EC dg: Agriculture and Rural Development commissioner: HOGAN Phil
committees/0
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EP
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committee_full
Agriculture and Rural Development
committee
AGRI
date
2016-01-11T00:00:00
rapporteur
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shadows
committees/0
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shadows
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AGRI
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committee_full
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group: EPP name: DELAHAYE Angélique
committees/1
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committee
BUDG
date
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rapporteur
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docs
  • date: 2016-05-09T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE580.784 title: PE580.784 type: Committee draft report body: EP
  • date: 2016-07-20T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE584.243 title: PE584.243 type: Amendments tabled in committee body: EP
  • date: 2016-09-07T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE583.947&secondRef=02 title: PE583.947 committee: BUDG type: Committee opinion body: EP
  • date: 2017-07-04T00:00:00 docs: url: /oeil/spdoc.do?i=27827&j=0&l=en title: SP(2017)243 type: Commission response to text adopted in plenary
events
  • date: 2016-03-10T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-11-08T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2016-11-16T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0339&language=EN title: A8-0339/2016 summary: The Committee on Agriculture and Rural Development adopted the own-initiative report by Angélique DELAHAYE (EPP, FR) on CAP tools to reduce price volatility in agricultural markets. The report recalled that instability and price volatility have always characterised agricultural markets. Price volatility is damaging to farming and the agri-food sectors, which is detrimental to investment, growth and employment. Current situation and objectives : the European Union does not currently have a genuine safety net to curb market volatility. Noting that farmers will be increasingly exposed to price volatility, Members deemed it necessary to adopt a more incisive and coherent policy , with targeted instruments at EU and national level. In this regard, they recommended that current second-pillar measures be reinforced in order to enhance the competitiveness of European agriculture and to involve producers’ organisations closely in the implementation process. The Commission is called upon to: conduct an in-depth analysis of the reasons for both the weak uptake of the tools available under the second pillar of the CAP and the sub-optimal implementation of the single CMO, with the purpose of reviewing the relevant provisions accordingly; take urgent action to support the agricultural sector of the outermost, mountainous and less favoured regions. Members underlined the importance of maintaining decoupled direct aids under the current CAP together with the single area payment scheme , which constitute compensation for public services and a vital component in securing the income of farmers and providing them with a degree of financial stability. Sectoral organisation and contractual systems : Members considered that primary producers are the weakest link in the food supply chain and must be permitted to come together in bodies such as cooperatives, producers’ organisations, or their own associations or inter-branch organisations. Members called on the Commission to facilitate the introduction of contractual systems by adjusting EU competition policy to the specific needs of the agricultural sector , with uniform rules and implementation in all Member States. The negotiating power of producers must be strengthened through collectively negotiated contracts, in order to place farmers in a position to counter unfair trading practices, improve their income stability, generate added value and invest in innovation. The Commission is called upon to: encourage EU-level inter-branch organisations to jointly defend the interests of producers; foster the exchange of best practices between Member States and to develop new tools in order to prevent and manage the risks associated with price volatility and thus to lay the foundations for discussion of the future reforms of the CAP; set up sectorial managed mutual funds, while guaranteeing that any future risk management scheme must comply with, and where necessary complete, insurance systems adopted at national level by Member States. Moreover, Members considered that price volatility can also be managed at national level, and invited the Member States to take into account market volatility in their tax rules by allowing farmers to create individual provision mechanisms that could be tax-free . Agricultural market and price observatories : the report stressed that agricultural markets must be transparent, which can principally be achieved by making the publication of existing information on prices and costs more timely, easily accessible and useful to all stakeholders in the supply chain, from production to distribution, thus limiting price speculation and price volatility. Members also: encouraged the creation of a European map with real-time information on the availability of agricultural products; recommended the establishment of European agricultural price observatories , covering the entire chain, from the producer price to the final selling price; Crisis prevention and management tools : Members stated that the traditional CAP crisis management tools (public intervention and private storage) are not sufficiently effective in a globalised economy. Therefore, they called on the Commission to: develop combinable and/or complementary public- and private-sector tools , together with a tailored, binding early warning mechanism in order to ensure the proper functioning of markets and counteract market crises; use all the tools already at its disposal in the single CMO to fight crises; conduct a study on how to develop mechanisms to prevent and combat crises due to price volatility using countercyclical aids, and to provide for greater flexibility in the annual budgets in order to take account of these aids. Lastly, the report regretted the low use of the crisis reserve and to the discretion that the Commission enjoys when it comes to releasing funds from the reserve. Therefore, it called for the crisis reserve to be constituted outside the EU budget and for it to serve as source of funding for crisis management tools.
  • date: 2016-12-13T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20161213&type=CRE title: Debate in Parliament
  • date: 2016-12-14T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=27827&l=en title: Results of vote in Parliament
  • date: 2016-12-14T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0504 title: T8-0504/2016 summary: The European Parliament adopted by 445 votes to 148 with 89 abstentions, a resolution on CAP tools to reduce price volatility in agricultural markets. Members recalled that instability and price volatility have always characterised agricultural markets. Price volatility is damaging to farming and the agri-food sectors, which is detrimental to investment, growth and employment. Farmers will be increasingly exposed to price volatility, arising from various causes such as the instability and imperfection of agricultural markets, the globalisation and sophistication of agricultural markets, greater variability of supply due to climatic instability and increased health risks. Current situation and objectives : the European Union does not currently have a genuine safety net to curb market volatility. While the European Union is scaling back its strategic support for agriculture, its competitors on the world market, notably the United States, Brazil and China, make available very considerable, and increasing, sums of public money for developing new risk-policy models. Given the increased exposure to price volatility, Members deemed it necessary to adopt a more incisive and coherent policy , with targeted instruments at EU and national in order to secure multifunctional, sustainable agricultural production throughout the Union along with fair and remunerative prices. In this regard, they recommended: that current second-pillar measures should be reinforced in order to enhance the competitiveness of European agriculture and to involve producers’ organisations closely in the implementation process; maintaining decoupled direct aids under the current CAP together with the single area payment scheme, which constitute compensation for public services and a vital component in securing the income of farmers and providing them with a degree of financial stability The Commission is called upon to: conduct an in-depth analysis of the reasons for both the weak uptake of the tools available under the second pillar of the CAP and the sub-optimal implementation of the single CMO, with the purpose of reviewing the relevant provisions accordingly; take urgent action to support the agricultural sector of the outermost, mountainous and less favoured regions. Sectoral organisation and contractual systems : primary producers are the weakest link in the food supply chain and must be permitted to come together in bodies such as cooperatives, producers’ organisations, or their own associations or inter-branch organisations. Members called on the Commission to facilitate the introduction of contractual systems by adjusting EU competition policy to the specific needs of the agricultural sector, with uniform rules and implementation in all Member States. The negotiating power of producers must be strengthened through collectively negotiated contracts, in order to place farmers in a position to counter unfair trading practices, improve their income stability, generate added value and invest in innovation. Those contracts should be of adequate duration and should lay down the prices, payment periods and other terms for the supply of agricultural products. The Commission is called upon to: set up an EU legislative framework forbidding unfair trading practices in the food supply chain that can create price volatility on agricultural markets; encourage EU-level inter-branch organisations to jointly defend the interests of producers; foster the exchange of best practices between Member States and to develop new tools in order to prevent and manage the risks associated with price volatility and thus to lay the foundations for discussion of the future reforms of the CAP; set up sectorial managed mutual funds, while guaranteeing that any future risk management scheme must comply with, and where necessary complete, insurance systems adopted at national level by Member States; adopt an awareness-raising plan on the risk management tools available within Pillar II of the CAP and in the single CMO. Moreover, Members considered that price volatility can also be managed at national level, and invited the Member States to take into account market volatility in their tax rules by allowing farmers to create individual provision mechanisms that could be tax-free. Agricultural market and price observatories : Parliament stressed that agricultural markets must be transparent, which can principally be achieved by making the publication of existing information on prices and costs more timely, easily accessible and useful to all stakeholders in the supply chain, from production to distribution, thus limiting price speculation and price volatility. The resolution also recommended: Members also: the creation of a European map with real-time information on the availability of agricultural products; the establishment of European agricultural price observatories, covering the entire chain, from the producer price to the final selling price; the involvement of economic stakeholders when making up-to-date and relevant data on movements and short- and medium-term forecasts available at monthly or bi-monthly intervals corresponding to the specific needs of the relevant sector. Crisis prevention and management tools : Parliament stated that the traditional CAP crisis management tools (public intervention and private storage) are not sufficiently effective in a globalised economy. Therefore, it called on the Commission to: develop combinable and/or complementary public- and private-sector tools, together with a tailored, binding early warning mechanism in order to ensure the proper functioning of markets and counteract market crises; use all the tools already at its disposal in the single CMO to fight crises; conduct a study on how to develop mechanisms to prevent and combat crises due to price volatility using countercyclical aids, and to provide for greater flexibility in the annual budgets in order to take account of these aids. Lastly, Parliament regretted the low use of the crisis reserve and to the discretion that the Commission enjoys when it comes to releasing funds from the reserve. Therefore, it called for the crisis reserve to be constituted outside the EU budget and for it to serve as source of funding for crisis management tools.
  • date: 2016-12-14T00:00:00 type: End of procedure in Parliament body: EP
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  • body: EC dg: url: http://ec.europa.eu/dgs/agriculture/ title: Agriculture and Rural Development commissioner: HOGAN Phil
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  • The Committee on Agriculture and Rural Development adopted the own-initiative report by Angélique DELAHAYE (EPP, FR) on CAP tools to reduce price volatility in agricultural markets.

    The report recalled that instability and price volatility have always characterised agricultural markets. Price volatility is damaging to farming and the agri-food sectors, which is detrimental to investment, growth and employment.

    Current situation and objectives: the European Union does not currently have a genuine safety net to curb market volatility. Noting that farmers will be increasingly exposed to price volatility, Members deemed it necessary to adopt a more incisive and coherent policy, with targeted instruments at EU and national level.

    In this regard, they recommended that current second-pillar measures be reinforced in order to enhance the competitiveness of European agriculture and to involve producers’ organisations closely in the implementation process.

    The Commission is called upon to:

    • conduct an in-depth analysis of the reasons for both the weak uptake of the tools available under the second pillar of the CAP and the sub-optimal implementation of the single CMO, with the purpose of reviewing the relevant provisions accordingly;
    • take urgent action to support the agricultural sector of the outermost, mountainous and less favoured regions.

    Members underlined the importance of maintaining decoupled direct aids under the current CAP together with the single area payment scheme, which constitute compensation for public services and a vital component in securing the income of farmers and providing them with a degree of financial stability.

    Sectoral organisation and contractual systems: Members considered that primary producers are the weakest link in the food supply chain and must be permitted to come together in bodies such as cooperatives, producers’ organisations, or their own associations or inter-branch organisations.

    Members called on the Commission to facilitate the introduction of contractual systems by adjusting EU competition policy to the specific needs of the agricultural sector, with uniform rules and implementation in all Member States.

    The negotiating power of producers must be strengthened through collectively negotiated contracts, in order to place farmers in a position to counter unfair trading practices, improve their income stability, generate added value and invest in innovation.

    The Commission is called upon to:

    • encourage EU-level inter-branch organisations to jointly defend the interests of producers;
    • foster the exchange of best practices between Member States and to develop new tools in order to prevent and manage the risks associated with price volatility and thus to lay the foundations for discussion of the future reforms of the CAP;
    • set up sectorial managed mutual funds, while guaranteeing that any future risk management scheme must comply with, and where necessary complete, insurance systems adopted at national level by Member States. 

    Moreover, Members considered that price volatility can also be managed at national level, and invited the Member States to take into account market volatility in their tax rules by allowing farmers to create individual provision mechanisms that could be tax-free

    Agricultural market and price observatories: the report stressed that agricultural markets must be transparent, which can principally be achieved by making the publication of existing information on prices and costs more timely, easily  accessible and useful to all stakeholders in the supply chain, from production to distribution, thus limiting price speculation and price volatility.

    Members also:

    • encouraged the creation of a European map with real-time information on the availability of agricultural products;
    • recommended the establishment of European agricultural price observatories, covering the entire chain, from the producer price to the final selling price;

    Crisis prevention and management tools: Members stated that the traditional CAP crisis management tools (public intervention and private storage) are not sufficiently effective in a globalised economy. Therefore, they called on the Commission to:

    • develop combinable and/or complementary public- and private-sector tools, together with a tailored, binding early warning  mechanism in order to ensure the proper functioning of markets and counteract market crises;
    • use all the tools already at its disposal in the single CMO to fight crises;
    • conduct a study on how to develop mechanisms to prevent and combat crises due to price volatility using countercyclical aids, and to provide for greater flexibility in the annual budgets in order to take account of these aids.

    Lastly, the report regretted the low use of the crisis reserve and to the discretion that the Commission enjoys when it comes to releasing funds from the reserve. Therefore, it called for the crisis reserve to be constituted outside the EU budget and for it to serve as source of funding for crisis management tools.

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  • body: EP responsible: False committee: BUDG date: 2016-03-16T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: ALI Nedzhmi
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  • date: 2016-09-29T00:00:00 body: EP type: Vote scheduled in committee, 1st reading/single reading
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  • body: EP shadows: group: S&D name: CAPUTO Nicola group: ECR name: DOHRMANN Jørn group: ALDE name: JAKOVČIĆ Ivan group: GUE/NGL name: FLANAGAN Luke Ming group: Verts/ALE name: HEUBUCH Maria responsible: True committee: AGRI date: 2016-01-11T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: EPP name: DELAHAYE Angélique
  • body: EP responsible: False committee_full: Budgets committee: BUDG
links
other
  • body: EC dg: url: http://ec.europa.eu/dgs/agriculture/ title: Agriculture and Rural Development commissioner: HOGAN Phil
procedure
reference
2016/2034(INI)
title
CAP tools to reduce price volatility in agricultural markets
legal_basis
Rules of Procedure of the European Parliament EP 052
stage_reached
Preparatory phase in Parliament
subtype
Initiative
type
INI - Own-initiative procedure
subject
3.10.03 Marketing and trade of agricultural products and livestock