Withdrawal of tax break angers German farmers

As Germany faces a budget crisis, German farmers are furious at the withdrawal of the tax exemption for agricultural diesel.   Farmers blockaded large parts of central Berlin with a convoy of tractors yesterday.

The measure is expected to save the state about €900m a year and was apparently agreed over the head of farm minister Cem Ozdemir who has publicly criticised it.  It is estimated that the average farm will have to pay an additional €6,000 a year in tax as a result.

'Red' diesel was retained in the UK after Brexit.

More on this hee: https://unherd.com/thepost/germanys-farmer-protests-spell-trouble-for-olaf-scholz/

Progress on greening CAP 'stalling

Progress on the greening of the CAP is stalling according to the OECD: https://www.euractiv.com/section/agriculture-food/news/tie-farming-subsidies-to-performance-oecd-tells-eu/

The OECD calls for a more results oriented CAP.

UK agricultural policy after Brexit

My article with Alan Greer on the impact of Brexit on agricultural policy in the four nations of the UK is available to view free online: https://www.tandfonline.com/doi/full/10.1080/13501763.2023.2204118

The CAP after 2027

The debate about the CAP post 2027 is starting and Alan Matthews looks in depth at an IEEP paper on the green transition: http://capreform.eu/how-to-advance-the-green-transition-in-the-next-cap-post-2027/

Pessimism about pesticides regulation not justified

With the European Parliament scheduled to vote on the Sustainable Use of Pesticides Regulation in November, this open access article by JRC scientists sets out why fears of negative impacts on production are overblown: https://www.nature.com/articles/s43016-023-00834-6

Recent studies have estimated the potential yield impacts of pesticide reductions in the European Union. While these estimates guide policy design, they are often based on worst-case assumptions and rarely account for positive ecological feedbacks that would contribute to sustainable crop yields in the long term.

'Protecting crop yields is critical to safeguarding food and feed security. Studies on the potential yield impacts of a reduction in pesticide use and risk in the EU estimated adverse effects. As shown here, the literature suggests that these estimates are upper bounds for several reasons that must be acknowledged in research on the impacts of a pesticide reduction: the full 50% reduction does not fall onto feed and food crops; the heterogeneity in pesticide use across farms, areas and crops can be exploited in reduction plans; risk-based indices allow for progress by substituting active substances; the expansion of the area under organic farming may deliver progress; the SUR facilitates agronomic and technological alternatives to pesticides; and ecosystem services supporting sustainable crop yields will benefit from lower pesticide use. Finally, the SUR improves the availability of data on pesticide use and, in doing so, addresses a bottleneck in research and policy-making concerning more sustainable food systems.'

EU in retreat over animal welfare?

The EU is considering scrapping plans to impose regulations designed to improve animal welfare in the farming industry over concerns about the impact it could have on food inflation, according to senior officials.

The European Commission had promised to act after public pressure to stop practices such as the use of cages for livestock, the killing of day-old chicks, and the sale and production of fur. But concerns that the proposed changes could add to food costs, which rose sharply after Russia invaded Ukraine last year, have led Brussels to reconsider the plans.

Three EU officials with knowledge of the matter told the Financial Times that the Commission had dropped the proposals completely — along with a sustainable food law designed to boost green food production across the bloc. But another official said it was reviewing the animal welfare plan and would propose a scaled-back version.   This sounds like a trial balloon to judge reactions.

“Some in the commission are worried about the cost,” said Joe Moran, director of European policy for Four Paws, an animal welfare campaign group. The legislation is among the few remaining parts of the EU’s Green Deal climate package, laid out in 2019 to pivot the bloc to a more sustainable economy. But ahead of EU-wide elections in 2024, conservative politicians have pushed back against the environmental regulations.

Typically, the reaction of farm organizations is to call for more subsidies.  Pekka Pesonen, secretary-general of Copa-Cogeca, the EU farmer’s group, told the FT it could support many of the changes as long as they received financial aid to implement them, and if imported meat was subject to the same standards. That would in effect ban many imports from trading partners such as Brazil, Ukraine and Thailand. Such a measure would also be opposed by trade commissioner Valdis Dombrovskis.

The UK was one of the strongest advocates of animal welfare measures and its voice is no longer heard in the EU.

British farmers think things were better when the EU made policy

The voting behaviour of UK farmers in the Brexit referendum mirrored that of the population as a whole, but quite a few are now regretting their choice according to a Farmers' Weekly survey of 950 farmers and those in ancillary industries. 

Two-thirds of those surveyed thought that the UK was better off when the EU devised policy, ironically a view strongest among those growing non-supported crops such as potatoes, sugar beet and fruit.

Three-quarters of respondents said that Brexit had been negative for the UK economy and 69 per cent said that it had been very or fairly negative for their own businesses.   If the vote could be held again, there would be an eight per cent swing from leave to remain.   65 per cent said that it made it less likely they would vote Conservative.

Both arable and livestock farmers seemed equally disappointed   Even more negative were those growing vegetables (81 per cent) or keeping pigs  (79 per cent).

A clear majority said that despite pre-Brexit promises of 'a bonfire of red tape' once Britain left the EU, the reverse had been true.   My talks to farmers around the north of England convinced me that some had a very surprising view of the regulations that could be discarded.

The phasing out of the Basic Payment Scheme in England attracted a lot of criticism, it being claimed that farming could not survive without support.    Arguably this shows an industry that had become too reliant on subsidies not tied to outcomes.

How has UK agricultural policy changed since Brexit?

Some thoughts here: https://blogs.lse.ac.uk/europpblog/2023/05/24/how-has-uk-agricultural-policy-changed-since-brexit/

Divergence and continuity after Brexit

My article with Alan Greer on 'Divergence and Continuity after Brexit in agriculture' in the Journal of European Public Policy is now available online: https://www.tandfonline.com/doi/full/10.1080/13501763.2023.2204118

Throughout British membership of the European Union (EU), agricultural policy was largely determined by the Common Agricultural Policy (CAP). This was viewed by the UK as a dysfunctional policy and while periodic reforms meant that the EU moved slowly in the direction advocated by the UK, many of the main policy elements remained in place. The devolved administrations in Scotland, Wales and Northern Ireland have always enjoyed a measure of policy freedom in agriculture and have diverged from England in some areas. This article explores the extent of de-Europeanisation in the agricultural sectors in the UK and the patterns of divergence between them, focusing primarily on the development of policies for agricultural support that will replace those in place under the CAP. Overall, there has been substantial divergence in policy, but also areas of continuity, which means that processes of de-Europeanisation in the UK agricultural sectors has been uneven.

Fallow land boosts biodiversity

Research suggests that fallow land can promote bird biodiversity: https://phys.org/news/2023-04-fallow-bird-biodiversity.html

It is suggested that getting rid of set aside in the CAP was a mistake, but there was a broader set of arguments about that policy.   The current emphasis on food security would make it difficult to reinstate.

Ag committee wants cattle kept out of emission plans

The EU Parliament's Agriculture Committee wants to exclude cattle and other livestock from plans to cut greenhouse gas emissions: https://www.euractiv.com/section/agriculture-food/news/agriculture-meps-ask-to-exclude-cows-from-emission-cutting-plans/

Cattle are responsible for 68-74 per cent of livestock emissions.  Methane from cattle is shorter lived than carbon dioxide but is estimated to be 28 times more potent in warming the atmosphere.

In 2018 methane emissions from enteric fermentation in digestive systems of ruminant livestock continued to be the largest single component of farm-gate emissions. Enteric fermentation is a natural part of the digestive process in ruminant animals such as cattle, sheep, goats, and buffalo.   This is a digestive process as enzymes in their gut break down grass, hay and other feed.  Microbes in the digestive tract, or rumen, decompose and ferment food, producing methane as a by-product.    The gas, which builds up in stomachs, is then emitted largely through their burps