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Decoupling and Cross-Compliance as Concepts and Instruments in Agricultural Multifunctionality

Decoupling and Cross-Compliance as Concepts and Instruments in Agricultural Multifunctionality. Kenneth J. Thomson University of Aberdeen. “Agricultural Multifunctionality”.

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Decoupling and Cross-Compliance as Concepts and Instruments in Agricultural Multifunctionality

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  1. Decoupling and Cross-Compliance as Concepts and Instruments in Agricultural Multifunctionality Kenneth J. Thomson University of Aberdeen

  2. “Agricultural Multifunctionality” • The resources of farm businesses and/or households (“farms”) used to produce at least one “commodity” (e.g. wheat, B&B) and one (non-traded) “non-commodity” (e.g. landscape, pollution) • a political football, used to justify protectionism • a policy objective, or a “fact of life”?

  3. Functions and Policy • Functions are the production of commodities and non-commodities • Farms produce via their “activities”, e.g. grazing, off-farm work • Policies affect (encourage, discourage, alter) many of these activities, directly and indirectly, and thus affect functions

  4. A Policy-Function Matrix for Multifunctionality • Columns = Policy Areas (or “Policies”), e.g. market support, agri-environmental measures, energy policy • Rows = Functions, e.g. food production, landscape provision, social cohesion • Cell entries = how farm Activities are affected by Policies in terms of the Function(s) they provide

  5. Matrix Completions (see hand-out) • Expert entries for 11 Case Study Areas (mostly NUTS3) in TOP-MARD Partner Countries • Most entries for CAP-type measures (market support, direct income aids, agric. devt. support), agri-environmental measures, and LEADER-type projects

  6. Main Policy (column) Entries • All “agricultural” policies affect almost all “functions“; but sometimes negative or ambiguous • Biodiversity and other environmental policies positive for water, wildlife, etc. • Regional Fund and (especially) LEADER generally positive for several agric. functions • Energy policy positive for farm production (unprocessed and processed) • Forestry policy affects farm production also landscape and wildlife (negatively?)

  7. Main Function (row) Entries • Farm product supply affected (positively) by several policies, not all “ agricultural”. • Food security, food quality (actual or perceived) and animal welfare generally improved by several policies • Tourist facilities promoted by both agricultural development policies and LEADER-type schemes. • Landscape and natural resources affected, both positively and negatively, by most policies • “Soft” functions promoted by several policies, but other policies have uncertain or negative effects.

  8. Policy Scenarios • Time horizon? – 2013, but simulate to 2030? • Policies only, or market/other developments? – mostly policy only • One-by-one, or joint? – joint • “Plausible” or “extreme”? - “plausible” • Number of scenarios? – less than 10?

  9. Decoupling and Cross-Compliance • Decoupling a “hot” modelling topic • theory (SFP/SAPS as lump sum or coupled) • country-to-country variation (and change) • Cross-compliance less analysed? In UK: • Statutory Management Requirements (SMRs) from 18 EU Directives/Regs. • Good agricultural and environmental condition(GAEC) standards, e.g. land management, other (UK) legal reqts.

  10. More on Cross-Compliance • So far, fairly limited; “easy” standards, uncertain policing and penalties • In the 10 SAPS NMSs: • limited to permanent pasture • (even) more “agricultural” than in EU-15 • difficult to deal with land abandonment • An “excuse” for SFPs/SAPSs? But …

  11. Future of Cross-Compliance? • Depends on pace of decoupling • Strengthen into a full-scale agri-environmental measure?

  12. A New Scheme in Scotland • Tiers 0 (basic), 1 (SFP), 2 (AE), 3 (special) • Tier 1: 18 GAEC standards (94pp guide!); • Tier 2 Land Management Contracts (LMCs) to comprise most pre-existing schemes via: • 20-item menu of options • Individual contracts, mostly five-year • Fixed payment rates, e.g. ~€100-300/yr for AHW, €1.50/ha moor, €150/visit, €4/m path • Overall max.: e.g. €4500/100ha or €450(+)/ha

  13. Conclusions • Multifunctionality: what mix of “functions”? What kinds of farm (household) activities? • TOP-MARD policy-function matrix a useful tool? – but need to refine in use • Decoupling (SFP/SAPS) creates need for cross-compliance, but: • future strengthening (rules and/or control)? • develop into full-scale AE and other schemes?

  14. Thank you !

  15. Contents • Introduction • Agricultural Multifunctionality • Functions and Policy • Policy Matrix • Main Functions of Agriculture across Europe • Policy Scenarios • Decoupling and Cross Compliance • Conclusions

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