BETA

Procedure completed



2016/2034(INI) CAP tools to reduce price volatility in agricultural markets
RoleCommitteeRapporteurShadows
Lead AGRI DELAHAYE Angélique (EPP) CAPUTO Nicola (S&D), DOHRMANN Jørn (ECR), JAKOVČIĆ Ivan (ALDE), FLANAGAN Luke Ming (GUE/NGL), BOVÉ José (Verts/ALE)
Opinion BUDG ALI Nedzhmi (ALDE)
Lead committee dossier: AGRI/8/05931
Legal Basis RoP 052

Activites

  • 2016/12/14 Decision by Parliament, 1st reading/single reading
  • 2016/12/13 Debate in Parliament
  • 2016/11/16 Committee report tabled for plenary, single reading
    • A8-0339/2016 summary
  • 2016/11/08 Vote in committee, 1st reading/single reading
  • 2016/03/10 Committee referral announced in Parliament, 1st reading/single reading

Documents

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)

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
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  • body: EC dg: Agriculture and Rural Development commissioner: HOGAN Phil
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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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  • 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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  • 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
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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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  • 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
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  • 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
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subtype
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type
INI - Own-initiative procedure
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3.10.03 Marketing and trade of agricultural products and livestock