Laimonas

“ANALYSIS AND VISION OF THE REFORMED CAP IN THE NEW MEMBER STATE” (LITHUANIA)LAIMONAS ČIAKAS Ministry of Agriculture, Republic of Lithuania VALMIERA2005 05 20: 

“ANALYSIS AND VISION OF THE REFORMED CAP IN THE NEW MEMBER STATE” (LITHUANIA) LAIMONAS ČIAKAS Ministry of Agriculture, Republic of Lithuania VALMIERA 2005 05 20

CONTENT: 

CONTENT 1. Current situation 2. Transition to SPS: Year of transition Regionalization 3. SPS scheme and economical expedience 4. Cross compliance 5. Farm advisory system

Slide3: 

SAPS IN LITHUANIA, 2005 Direct payment - 60 percent of EU level: 30 percent from EU budget; 30 percent as Complementary National Direct Payments (CNDP) CNDPs shall be financed from the EAGGF “Guarantee” Section (co-financed from the National Budget) and the National Budget.

Slide4: 

M EUR DIRECT PAYMENTS IN LITHUANIA, 2005

TRANSITION TO SPS: 

TRANSITION TO SPS

REGIONALIZATION: 

REGIONALIZATION Lithuania as one region: There are no sharp differences between regions; Lower administration costs; Less social tension between farmers.

ECONOMICAL EXPEDIENCE: 

ECONOMICAL EXPEDIENCE Transition’s goals: Transition to reformed CAP for Lithuanian farms should be as mild as possible; No sharp changes in support level for different agricultural sectors should be ensured; Coupled support envelope for plant and animal sector should be the same.

ANALYSED SPS SCHEMES: 

ANALYSED SPS SCHEMES

SPS I: 

SPS I Simple administration Poorly for specialized farms, fine for small farms Huge support reduce for meat cattle breeding Advantages Disadvantages

SPS II C: 

SPS II C Promotion of specialized cereals, rapeseed farms development Partial maintenance of specialized cattle breeding sector Administration of SPS with elements of standard scheme Poor support for cattle breeding farms Advantages Disadvantages

SPS III C : 

SPS III C Promotion of cattle breeding sector development The highest income from direct payments per hectare of UAA More applications expected than in SPS II C. Stronger motivation for developing cattle breeding farms Administration of SPS with elements of standard scheme Disadvantages Advantages

Cross – compliance: 

Cross – compliance In order to implement the cross compliance requirements until the end of 2006, Lithuania will: Prepare a list of requirements of good agricultural and environmental condition. Prepare a system of farmer information on the requirements of good agricultural and environmental condition. Establish a control mechanism of the requirements of good agricultural and environmental condition. Establish the rules of reduction or cancellation of payments to the subjects of agriculture which do not follow the requirements of good agricultural and environmental condition. Prepare the requirements of maintaining good agricultural and environmental condition in the area that is not used for agricultural production.

Farmer advisory system in Lithuania I: 

Farmer advisory system in Lithuania I Lithuanian Agricultural Advisory System was established in 1993 and operates successfully. Also, since 1997, the farmers are consulted by the consultants of the Lithuanian Chamber of Agriculture.

Farm advisory system in Lithuania II: 

Farm advisory system in Lithuania II The Single Programming Document of Lithuania for 2004 – 2006 foresees an area of activities “Consulting services for farms” of the measure “Encouraging the adaptation and development of rural areas”. The following activities are supported: Consultations implementing SPD and RDP measures, preparation of the business (action) plans; Consultations implementing sanitary and animal welfare standards, good farming practices.

DRAFT CONCLUSIONS: 

DRAFT CONCLUSIONS The transition from SAPS to SPS (under I, II or III scenario) could be implemented through SPS III C scheme. The SPS scheme in 2009 should preserve coupled: 10% of EU supported crops, 100% of fibre flax, 100% of seeds premium envelope, 75% of bulls premium envelope, 50% of ewes premium envelope, 10% of bulls premium envelope for the promotion of quality beef production.

RECOMMENDATIONS: 

RECOMMENDATIONS It would be more accurate to start the implementation of SPS from 2009 as SAPS is more suitable to encourage needed structural changes in agriculture: Quite stable growth of income from direct payments will be maintained for a longer period. With forthcoming „cross-compliance“ requirements in mind, there will be enough time to prepare administration system till 2009. Enough time for preparation of staff for control and advisory systems.

  THANK YOU: 

THANK YOU