Strategic dialogue on the future of agriculture in the EU

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On September 4, 2024, after seven months of consultations and work, the President of the European Commission Ursula von der Leyen presented the report on the strategic dialogue on the future of agriculture in the EU. (1)

1) Strategic dialogue on the future of agriculture in the EU. Preamble

The lively tractors protests in the first half of 2024 had prompted the von der Leyen Commission under election to initiate a strategic dialogue in which the representatives of farmers who took to the streets all over Europe, as well as those of civil society, would also be involved. (2)

The working group therefore included 29 stakeholders, among them ECVC (European Coordination Via Campesina), IFOAM Organics Europe, EFFAT (European Federation of Food, Agriculture and Tourism Trade Union), EEB (European Environmental Board), BEUC (the European Consumers Organization ).

2) ‘A shared perspective for agriculture and food in Europe’

The EFSA and ECDC’s One Health report ‘A Shared Perspective on Agriculture and Food in Europe’ – written by the German philologist who chairs the working group, Professor Peter Strohschneider – offers a scenario analysis, the need for a broad and shared intervention, and its key elements.

The vision of more equitable agri-food systems – where economic sustainability and farmers’ income go hand in hand with the protection of soils and biodiversity – is expressed over the next 10-15 years. Provided that the policy recommendations contained in the report are followed up.

Fourteen recommendations are therefore proposed to Commissioner Ursula von der Leyen. Who, we recall, had promised to adopt a specific agenda in the first 100 days of her second mandate. A brief summary follows, with some notes by the writer.

2.1) Strengthening the position of the farmers in the food value chain

The protagonists of the food supply chain should be encouraged ‘to cooperate better, reduce costs, increase efficiency, improve prices and obtain a decent income from the market’. Therefore, proactive initiatives at European and national level are needed’ to ‘increase transparency in the food chain’ and ‘better address unfair trading practices’ (Part C.1.1.).

Farmers’ income, to whom must always be guaranteed prices higher than production costs, is a recurring theme throughout the report. It is worth remembering, however, the failure of the ‘High Level Group for the Good Functioning of the Food Chain’, and the ineffectiveness of the Unfair Trading Practices Directive (EU) 2019/633. And therefore an immediate revision of the UTPs Directive is necessary, in the opinion of the writer. (3)

‘The need to regulate the market to ensure fair and stable prices should have been at the centre of the recommendations, and to date the necessary discussion on supply management, public stocks and minimum support prices is missing’, in fact highlights the European Coordination of La Via Campesina representing small and medium farmers. (4)

2.2) Developing a new approach to sustainability

Participants in the strategic dialogue declare their support for the existing EU rules for the ecological transition. After the financial oligarchies in agriculture, it is recalled, obtained the withdrawal of the reform proposal on pesticides and the elimination of a third of the GAEC (Good Agricultural and Environmental Conditions) from the CAP (2,5).

A benchmarking system should be introduced at European level, to ‘measure the health status of each farm and each sector, facilitate the comparisons between different sustainability objectives and ambitions and thus help to take the necessary steps to increase sustainability standards’ (Part C.1.2.).

2.3) Prepare a fit-for-purpose CAP

The 2028-2035 CAP should, like the current one, promote competitiveness and profitability, ecological transition and diversity. And finally, an official report, states that the CAP subsidy support should go ‘to those who need it most’ (Part
C.1.3).

What is needed, therefore, in the opinion of the writer, is a substantial redistribution of aid in the CAP which includes maximum contribution thresholds for each company and groups of companies belonging to the same economic powers. (7) In addition to a simplification of the Kafkaesque procedures for accessing contributions and compensation (8,9).

2.3.1 La Via Campesina’s position

Family and peasant farms still represent 94,8% of the total in the EU, although 5,4 million of the 14,7 million (37%) of active enterprises in 2005 have closed in the following 15 years (Eurostat, 2020).

ECVC underlines the priority of strengthening the CMO (Common Market Organization) chapter – within the CAP (Common Agriculture Policy) – so that market regulation ensures fair prices.

2.4) Financing the transition

EIBs (European Investment Bank) participated in the working group and should offer credit and financing support that is needed in particular by small and medium-sized agricultural companies to address the ecological transition, the services digitalization, and risk coverage.

The European Investment Bank should therefore implement a sector-specific group lending package, extended to other stakeholders. Having already identified agriculture and bioeconomy as one of its key priorities within its
Strategic Roadmap 2024-2027 (Part C.1.4).

2.5) Promoting sustainability and competitiveness in trade policy

‘The European Commission should ensure greater coherence between its trade and sustainability policies. At the same time, the current approach to conducting negotiations on agriculture and agri-food should be reviewed’. (10)

The free trade negotiations should therefore consider ‘the strategic relevance of agriculture and food products’. This involves a review of their strategies, which must be:

– based on appropiate impact assessments, and

– supported by ‘astronger leadership in reforming the global trade policy framework’ (Part C.1.6).

2.6) Facilitating healthy and sustainable consumer choices

The European Commission and Member States should also adopt demand-side policies, ‘to create favourable food environments in which balanced, less resource-intensive and healthy diets are available, accessible, affordable and attractive’. In this context, the report:

– considers it ‘fundamental’ to support the trend towards balancing animal and vegetable protein intake, in view of a specific Action Plan that the European Commission will present in 2026

– calls on the European Commission to ‘conduct a comprehensive review of European food labelling legislation and publish a report assessing current measures relating to marketing to children(11)

– indicates the opportunity to introduce fiscal instruments to promote healthy choices, as well as social policies to safeguard food accessibility for low-income population groups

– encourages Brussels and the Member States to ‘take further action to achieve a more up-to-date framework for public procurement of sustainable food and enable food banks and other non-profit organizations to maximize their role’ (C.2.1). (12,13)

2.7) Sustainable agricultural practices

Specific recommendations are expected to ‘promote agrobiodiversity, reduce external inputs such as mineral fertilizers and pesticides, improve nutrient management, develop and use improved biocontrol’.

Organic production and agro-ecological farming practices should continue to receive support, including through the establishment of an adequately resourced nature restoration fund (outside the CAP). (Part C.2.2).

2.8) Reduction of greenhouse gas emissions in agriculture

A ‘coherent mix’ of EU and national policies should combine:

– harmonised criteria for estimating greenhouse gas emissions and defining specific targets for supply chains and ‘structural conditions’

– a system of incentives for the implementation of measures appropriate to the emission reduction targets set

– territorial strategies, also supported by the ‘Just Transition Fund’, (14) for more ambitious actions in the most problematic areas.

ETS (Emissions Trading Scheme). The introduction of a carbon-based emissions trading scheme is now considered premature. (15) The European Commission should continue its work with stakeholders and experts (Part C.2.2.1.).

2.9) Sustainable livestock husbandry

A strategy on the role of livestock farming should be based on sound scientific evidence and consultation with all interested parties. Such a strategy should include concrete measures, such as:

– financial support for investments and consultancy

– research on innovative technologies to reduce emissions and optimize the circular economy

– long-term solutions in areas with high concentrations of livestock, with the support of the Just Transition Fund.

The reform of animal welfare legislation cannot wait any longer and must be accompanied by a harmonised system of animal welfare labelling (Part C.2.3). (16,17)

2.10) Agricultural soils, resilience in agriculture, biotech

Soil consumption could continue for another quarter of a century, as the parties to the ‘Strategic Dialogue’ limit themselves to proposing the legally binding objective ‘no net land grab by 2050’. The EU soil strategy has moreover failed in the same legislature in which it was proposed, as we have seen. (18) The Commission should therefore in the meantime set up an agricultural land observatory (Part C.3.1.).

However, it is necessary to take action to facilitate the agriculture’s adaptation to changing climatic and environmental conditions and to promote investments and practices to progress towards water-resilient and less resource-intensive agriculture’.

The report indicates that the European institutions should continue to develop the ‘European model’ of plant breeding, namely the deregulation of new GMOs (NGTs), ‘safeguarding freedom of choice and recognising the contribution of SMEs and farmers’ (Part C.3.2.). In this regard, reference is made to some critical issues that have emerged in relation to the ‘polluter pays’ principle, the patentability of NGTs as conservation species, etc. (19,20).

2.11) Promoting sound risk and crisis management

‘Supportive policies are needed to reduce the current dependencies of certain critical production factors. A more coherent and effective approach to risk management is needed to strengthen risk prevention and adaptation at company level’. That means:

‘greater integration between risk management tools and associated investments’

‘better access of farmers to agricultural insurance’

‘reform of the current agricultural reserve to better address exceptional and catastrophic risks’ (Part C.3.3.).

2.12) Building an attractive and diverse sector

‘It is necessary to encourage the generational change in the agri-food sectors, creating momentum for the transition. Facilitating land mobility, adequate financial support and better education are key to attracting young farmers into the sector’.

Fairer working conditions are indispensable and require training and social dialogue, as indicated in the report. Their concrete implementation, however, requires, in the opinion of the writer, the recognition of a #fairprice on agricultural and food products.

‘The vitality and the attractiveness of rural areas must be significantly increased by implementing the long-term vision for rural areas and establishing a European Rural Contract’ (Part C.4.).

2.13) Better access to and better use of knowledge and innovation

Innovation, technology and knowledge play a key role in the transition of the agri-food sector. There is a need to facilitate the generation, access and sharing of knowledge and expertise, through:

– independent consultancy services

– more public-private partnerships

– greater investments in research and innovation.

The innovation will be able to offer greater benefits to the actors in the food supply chain thanks to leaner regulations and digital opportunities.’The role of social innovation must be recognized and supported’ (Part C.5).

Innovation needs to be inclusive, accessible to all stakeholders in the agri-food system, scalable and replicable. This can be achieved also through open innovation systems or using an open-source approach. A system-based approach to innovation is needed to encompass the complexity of agriculture and food systems’ (Part B, Guideline Political Principle. Guideline 8, point 2).

2.14) Governance and new culture of cooperation

EBAF, European Board on Agri-Food, should be established by the European Commission to follow up this dialogue with a ‘new culture of cooperation, trust and multi-stakeholder participation among actors and within institutions.

This new platform, consisting of agri-food value chain actors, civil society organisations and scientists, should identify the strategies needed to implement and further develop the conceptual consensus of the strategic dialogue, in order to make agri-food systems more sustainable and resilient.

Governance of this policy area at EU level should in any case pay particular attention to the need to develop smart administrative solutions, limit unnecessary bureaucratic burdens, conduct thorough impact assessments and ensure, as far as possible, inclusive political and decision-making processes.’ (Part C.1.6.).

3) Provisional conclusions

The strategic dialogue had the undoubted merit of involving the authentic representatives of family and peasant agriculture (ECVC), as well as those from civil society, in addition to the exponents of the various productive sectors that have always directed EU policies.

The great challenge is to transform general concepts into concrete actions, so that the goals of ‘economically viable, environmentally sustainable and socially responsible agriculture, food systems and rural areas’ can truly be achieved.

4) Future prospects

A qualitative leap could be achieved, in the opinion of the writer, through an agreement for the participants to commit themselves to supporting the positions shared in EBAF (European Board on Agri-Food) not only at the European Commission but also at the European Parliament and the Council.

This hypothesis would make it possible to speed up the political examination phase of the reform proposals, while respecting the positions expressed by the various stakeholders in a context of cooperation subject to special rules. Instead of reserving the political debate to mere competition between the most powerful lobbies.

Dario Dongo

Footnotes

(1) European Commission. Strategic Dialogue on the Future of EU Agriculture. 4 September 2024 https://tinyurl.com/bddv3py5

(2) Dario Dongo. Protesting farmers, pesticides instead of #fairprice. FT (Food Times).

(3) See paragraph 3 of the previous article by Dario Dongo. Sales below costs, farmers protest in France. FT (Food Times). 21.1.24

(4) As the Strategic Dialogue ends, ECVC demands concrete steps forward on prices, farmers’ incomes, right to land and generational renewal. European Coordination Via Campesina. Press release. 4.9.24 https://tinyurl.com/46urzt8b

(5) Dario Dongo. PAC, the ‘last-minute’ offer. Consumers are angry too. FT (Food Times).

(6) See paragraph 8 of the previous article by Dario Dongo. The tentacles of finance on food sovereignty and our food. FT (Food Times).

(7) Dario Dongo. Peace, Land and Dignity. Our movement in the 2024 European elections. FT (Food Times).

(8) Dario Dongo. CAP 2024, technical and management problems in the AGEA system. FT (Food Times).

(9) Dario Dongo. AgriCat, no protection against damages from catastrophic events. FT (Food Times).

(10) See paragraph 2 of the previous article by Dario Dongo. Via Campesina, farmers’ priorities in the European elections. FT (Food Times).

(11) Dario Dongo, Andrea Adelmo Della Penna. ‘Audiovisual Media Services Directive’ and protection of minors from junk food marketing. FT (Food Times).

(12) The revision of Directive 2014/24/EU should overcome the concept of ‘best price’ in the name of ‘best value’. See Dario Dongo, Giulia Caddeo. Green procurement, the ecological push of the reform. FT (Food Times).

(13) Dario Dongo, Andrea Adelmo Della Penna. Redistribution and donation of surplus food, the ABC. FT (Food Times).

(14) European Commission. Just Transition Fund https://tinyurl.com/3y897wx8

(15) Dario Dongo, Giulia Pietrollini. Carbon farming, green light from the Council for EU certification of carbon credits in agriculture. FT (Food Times).

(16) Dario Dongo. Animal welfare, open letter from civil society to the European Commission. FT (Food Times).

(17) Dario Dongo, Giulia Torre. Animal welfare, the EU labeling project. FT (Food Times).

(18) Dario Dongo, Alessandra Mei. Soil health, another flop in the EU. FT (Food Times).

(19) Dario Dongo, Alessandra Mei. New GMOs and seed exchange, the shame. FT (Food Times).

(20) Dario Dongo. NGTs, new GMOs. Letter from organic operators to EU ministers. FT (Food Times).

Dario Dongo
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Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.