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Thursday, 19 July 2012

Discussions on Rural development and Single CMO regulations

During the course of the last meeting of the Council on Agriculture, ministers held two orientation debates in the framework of the common agricultural policy (CAP) reform. The discussions focused on the proposal for a regulation on support for rural development (rural development regulation) and the proposal for a regulation establishing a common organisation of the markets in agricultural products (Single CMO regulation).
Most of the delegations agreed that in light of the challenges modern agriculture faces due to climate change and price volatility, risk management has become essential for farmers. Many member states also supported the Commission proposal on risk management through the second pillar, allowing flexibility to member states in its implementation, as well as the possibility of combining the measures with other actions under pillar II.
However, some delegations were not convinced about support for risk management under the second pillar and oppose, in particular, the income stabilisation tool, as they were concerned that the measure would require a high level of funding, and therefore absorb a large portion of their national envelope at the expense of other measures, such as climate and environment actions.
Regarding the CMO regulation, there was broad support within the Council for the proposed exceptional support measures. Nevertheless, some member states considered that the proposed approach was not sufficiently ambitious and that more might be done.

Source: Council of the EU