Cap set for two-year extension

The European Parliament has cleared the way for transitional arrangements to maintain the Common Agricultural Policy (Cap) in its present form for up to two years.

This is to allow time for a new Cap to be introduced, reflecting delays because the European Commission wants to include its green Farm to Fork policy – a measure which should have come into play this autumn.

While this creates uncertainty, the positive is that it would guarantee no cuts to the Cap budget. Meanwhile, the Commission has faced criticism from farm lobby groups for insisting that, regardless of the impact of Covid-19, it will press ahead with its Farm to Fork strategy to green agriculture.

The farming lobby says this would be an unnecessary burden when the industry is already facing a production and financial crisis because of the impact of lockdown measures on all markets.

Michael Gove, as the minister responsible for negotiations with the EU, has continued to insist a trade deal with the EU by will be in place by the end of the year, regardless of the coronavirus crisis.

He has said that fewer than 100 officials have been moved from the department responsible for negotiating this, allowing a “business as usual” approach.

However, negotiations take two sides and there is less enthusiasm in Brussels to commit time and officials to a process they feel now has even more uncertainties because of the economic damage from coronavirus.

Despite the government insisting it is prepared to walk away with no deal, rather than seek an extension to the transition period, a growing number of sources are suggesting this stance will eventfully be reversed or fudged.

The number of farming sectors across Europe seeking action by Brussels to tackle market problems is continuing to grow.

The latest are egg and poultry producers, who are pressing for curbs on imports. While the poultry sector is enjoying high demand, it is seeing its market under pressure from imports.

Flower producers have sought a special aid package from Brussels, as have wine producers who are seeing a drop in demand and are concerned about labour availability.

COPA, representing farm lobby organisations, says there is a 2.8 million tonne stockpile of surplus potatoes and it is continuing to grow.

One positive is that Brussels has finalised a trade deal with Mexico, which will ultimately create export opportunities for agriculture, particularly for pigmeat.

Picture: Shutterstock. European flower producers have sought a special aid package from Brussels.