| Commission Proposals, July 1997
(As outlined in the Government's explanatory memorandum on Agenda 2000 (document 9984/97) dated 9 September 1997)
| Agreement at European Council, March 1999
(As outlined in the Government's CAP Reform Agreement - An information document)
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| Arable crops |
| Reduction of cereals intervention price by 20% in one step in 2000.
| Reduction of 15% in two steps, starting in 2000, with the Agriculture Council to consider the need for a further step later.
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| Non crop specific area payment at 66 ecu/tonne (multiplied by cereals reference yields of the 1992 reforms) (to cover cereals, oilseeds, linseeds and proteins. 6.5 ecu supplement on proteins). Silage cereals excluded. Durum wheat supplementary aids unaffected.
| Area payment increased to ?63/tonne. Supplement on protein crops increased to ?9.5/tonne.
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| Default rate of compulsory set-aside at zero (voluntary set-aside would continue and receive the non crop specific payment).
| Default rate of compulsory set-aside 10%.
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| Beef |
| Intervention price reduced by 30% over the period 2000-02 with adaptation of import/export management measures. Introduce a private storage scheme.
| Intervention price reduced by 20% over 3 years, starting 2000. Safety-net intervention price from 2002 onwards set at ?1560/tonne (25% below current level).
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| Premium increases:
| |
| Suckler cow premium: 215 ecu/head each year.
| Reduced to ?200. |
| Beef special premium: young bulls one payment of 368 ecu/head.
| Reduced to ?210. |
| Steers: 2 payments of 232 ecu/head. | Reduced to ?150.
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| Introduction of dairy cow premium at 70 ecu/head.
| Discretion for member states. |
| Extensification Premium - reflect on how to strengthen in relation to environmental objectives.
| Optional bases:- a two tier scheme payments of ?33 and ?66/head for stocking rates <2 and < 1.6LU/HA 2000-02 rising to ?40 and ?80/head 2003 with reduction of 0.2LU/HA.
or:- single tier payment ?100/head where < LU/ha 1.4.
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| Calf slaughter premium at ?50/head.
Adult cattle (more than 8 months old) slaughter premium ?80/head.
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| Dairy |
| Milk quota regime retained until 2006.
| Unchanged.
Specific quota increases allocated to Greece, Italy, Ireland, Northern Ireland and Spain.
General 1.5% quota increase for all other Member States.
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| 10% support price cut over 6 years.
| 15% support price cut, starting in 2005, to be phased in over 3 years.
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| Dairy cow premium supplemented by an extra 145 ecu/head, adjusted according to milk yield.
| Compensation for reductions in support prices expressed in ?/tonne of milk quota held by the producer on 31 March each year, to be phased in.
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| Provision for additional national envelopes to top up the basic payments.
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| Mid-term review of quota regime (timing unclear).
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| Modulation |
| · Possibility of differentiated CAP payments and limits on payment either as a ceiling on direct aid per holding, or as a national maximum envelope of direct aid, allowing Member States to decide on its distribution.
| Member States have the discretion to reduce direct payments by up to 20% according to labour force criteria, overall prosperity criteria, and/or the total amount of aids received by farmers.
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| Environment |
| · Enable Member States to make direct payments conditional on the respect of environmental conditions.
· Targeted agri-environmental schemes should be reinforced and encouraged.
| Member States are required from 2000 to take appropriate environmental measures, and have the discretion to attach appropriate environmental conditions to direct payments ("cross-compliance").
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| Rural Development |
| Existing measures, including agri-environmental schemes, to be brought together in a single rural policy. Outside Objective 1 & 2 areas measures to accompany and complement market policies will be co-financed under the EAGGF Guarantee section. They will embrace all measures supporting structural adjustment and rural development as presently co-financed by the EAGGF Guidance Section.
| All rural development and agri-environment measures brought together in a single Rural Development Regulation. Member States required to draw up 7-year Rural Development Plans: agri-environment schemes compulsory, all others optional (e.g. establishment aid for young farmers, early retirement scheme, support for processing and marketing of agricultural products, afforestation).
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