Fedral Agricultural

Research Centre Institute of Rural Studies

Cross-compliance – Greening of the First Pillar?

Heike Nitsch

“Nature Conservation and the EU policy for sustainable land management in the new EU Member States”

Bonn, 19 June 2006

Nitsch 06-2007

Structure

1. Cross compliance as an instrument of environmental policy

2. Impacts of cross compliance standards on nature conservation and biodiversity

3. Recommendations/Future options

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Cross- compliance: Objectives

Incorporating basic standards on environment, food safety, animal health and welfare and GAEC into Pillar 1

Enhancing the respect of mandatory standards at farm level Maintaining agricultural land in good condition Preventing land abandonment Maintaining the extent of permanent pasture

Promoting sustainable agriculture

As well: Reinforcing legitimacy of the CAP and acceptance by consumers

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Cross- compliance: Framework

EU-wide, horizontal framework for setting and enforcing environmental (and other) standards, composed of:– “Statutory management requirements” (SMR) for the areas

environment, food safety and animal welfare, based on EU-Regulations and Directives (Annex III; Reg.1782/2003)

– Standards for “good agricultural and environmental condition” (GAEC)(Annex IV) in terms of soil conservation, minimum maintenance of land and retention of landscape elements

– Requirement to maintain the share of permanent pasture(Reg.796/2004)

– Member States with SAPS: GAEC (according to Reg.2199/2003);SMRs to be introduced from 2009 on

Requirements for systematic control and sanctions Scope for implementation in Member States

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Obligatory Cross Compliance in the EU – Characteristics

Annex III: Re-enforcement of mandatory standards No direct additional cost for farmers

– Standards according to national implementation (e.g. NVZ; Natura 2000) Annex IV: Keep land in good agricultural and environmental

conditions– Standards partly based on existing national legislation, GFP or additional

standards ( additional effort for compliance)– Wide scope for MS according to national circumstances and priorities– Interaction with AEM?

A command-and-control instrument; low control density + potentially high sanctions

Dependent and based on direct payments(not related to compliance cost and ability of farmers to deliver environmental benefits)

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Cross compliance – Main standards with impacts on nature conservation

Annex III: Compliance with the Habitats and Birds Directives:

Management plans only under development; high importance of AEM; impact of CC unclear (mandatory standards only) Mainly avoidance of the deterioration of habitats

Indirect benefits for biodiversity through increased enforcement of rules for the application of fertiliser and pesticides

More rigorous and systematic enforcement regime; higher awareness of farmers Better compliance?

Introduction of CC speeding up implementation? But: risk of high sanctions could endanger cooperation of farmers?Annex IV: Minimum level of maintenance (minimum stocking rates and/or

appropriate regimes; protection of permanent pasture; retention of landscape features); standards for crop rotation

Requirements for maintaining the share of permanent pasture

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Selected requirements for GAEC with relevance to biodiversity in EU-15

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Area-wide retention of existing landscape features

Minimum management of land

Wildlife friendly cutting on set-aside land

Immediate restrictions at farm level on conversion of perm. grassland

Buffer strips/ minimum share of landscape elements

Minimum standards for crop rotation

Austria X X Certain locations X

Belgium X X (Wal)

Denmark X X

Finland X X X X

France Regional rules Reg. rules X (3%) X

Germany X X X X

Greece X X (X)

Ireland X X X X

Italy X Reg. rules Unless renewal

Luxemburg X X

Netherlands

Portugal X X X

Spain X X Unless renewal

Sweden X

UK (Eng.) X X X Uncultivated and

semi-nat. land X

Nitsch 06-2007

GAEC-standards in EU-10

Information analysed from CZ, LT, LV, PL, SK Focus rather on good agricultural conditions

(in LT, LV, PL, SK standards for minimum maintenance exclusively targeted at keeping agricultural land open)

Examples for further standards:– Protection of landscape elements (only in CZ, rather linked

to erosion)

– No conversion of grassland: CZ, LV (approval only in exceptional cases), PL (ratio to be maintained at farm level)

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

CC and nature conservation – Analysis of GAEC I

Standards for GAEC differ widely throughout the EU Maintenance of landscape features:

– Where existing, standards can contribute to conservation, but do not increase quantity or quality

– Only few standards for buffer strips Minimum maintenance of land:

– Not primarily targeted at biodiversity, but rather at keeping land open (long-term option?); partly standards for wildlife friendly mowing

– Inflexible standards for avoiding encroachment can increase pesticide use and hinder micro-succession (compatible with semi-open pastures?)

Crop rotation: standards in few MS; little impact Other: e.g. rules for managing target areas in England (re-inforcement

of existing legislation concerning EIA and SSSIs); rules for fallow land Conservation of permanent grassland:

– Provision of safeguard against strong overall decline;but: quality and location generally not taken into account

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

CC and nature conservation – Analysis of GAEC I I

Potential for area-wide implementation of meaningful standards is existing, but not realised by many Member States

– Due to existing AEM or national legislation, cost for farmers and administrations, to avoid disallowances

CC unlikely to be decisive factor in preventing land abandonment(abandonment of single plots due to high cost for maintenance?)

CC can contribute to preventing very negative impacts of agriculture and conserving existing landscapes and habitatsBut: does not ensure adequate management of valuable areas(few examples for adaptation to local conditions)

Environmental impact of Pillar 1 remains limited – strengthening of Pillar 2 remains important strategy

– Increased targeting of AEM and LFA payments to nature conservation– Budget for Natura 2000 payments

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Cross compliance – Recommended adaptations

Control system: Danger of bureaucratic effort without much impact Administrative effort for enforcement of standards has to be

justified Achieve a maximum of compliance with the given resources for controls and prevent breaches with severe consequences

Optimise enforcement system – Further development of risk analysis (control groups; selection

criteria)

– Link to specialised controls? Direct payments are insecure in the future

CC cannot replace specialised controls Optimising specialised control system remains crucial

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Cross compliance – Recommended adaptations: GAEC

1. Consolidation and harmonisation of existing standards:– Maintenance of existing landscape elements

– Ban on conversion of certain types of grassland (e.g. in designated areas, on organic soils, on steep hills, along water courses)

– More flexibility for encroachment; regional decisions on priority areas for continuation of ext. farming or succession/afforestation

– Minimum requirements for crop rotation? (bioenergy crops!) 2. Introduction of mandatory share of “ecological priority

area” (replacing obligatory set-aside?) :– Minimum of 5% of UAA at farm level? Regional differences? Except small

farms and HNV farms?

– Focus on linear features (min. width 5m)

– No use of fertiliser and pesticides, no ploughing

– AEM as top-ups to increase quality

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Further long-term scenarios for cross compliance?

Expanding set of standards: e.g. WFD, climate protection Downsizing Annex III and concentration on CC as a tool for

land management Integration of Pillar I and II:

– Single EU fund for rural areas

– Farmers receive payment for obligatory proactive environmental management and must complete an environmental management plan (simple EIA + action plan)

– 3-tier approach: Flat-rate payment for basic standards; increased payments for more demanding activities

– Management options may be chosen from a local adapted menu reflecting the specific conditions and needs of the local landscape

– Supplement for farmers in areas where continuation of traditional farming practice is important

Structure

CC as policy instrument

Standards – link to nature conservation

Future options?

Nitsch 06-2007

Thank you for your attention

Cross Compliance Network Project (2005-2007):www.ieep.eu/projectminisites/crosscompliancenetworkproj/index.php

MEACAP Project (Impact of Environmental Agreements on the CAP)(2004-2007)

www.ieep.eu/projectminisites/meacap/index.php