EU farm chief Phil Hogan lays out his agriculture agenda

European agriculture commissioner Phil Hogan gives Johann Tasker an early taste of his priorities for food and farming ahead of his first major UK speech at the NFU conference in Birmingham on Tuesday (24 February).

Hogan on CAP reform

I have prioritised simplification of the CAP for my 2015 work programme – not just directly for farmers but also for the food industry. I believe we can achieve a lot on simplification and improvements for the producer and the food chain.

The agriculture portfolio is often underestimated in terms of the contribution it makes to jobs and growth. There are 25 million farmers in the EU and 46 million people employed in the food industry, so it makes a major contribution and we want to do more to accentuate that contribution.

See also: Ireland’s Phil Hogan lands EU commissioner job

Policies can grow over a period of time and rather than evaluating an existing policy, it is often easier for people to just add a bit on, so after a while it becomes very complex. We are conscious of that and want to do something about it.

I am also very conscious that farmers have seen their share of margin and profitability in the food chain reduced. That is another agenda item I have highlighted as being important.

On keeping everyone happy

You would need four Common Agricultural Policies for the EU to keep everyone happy – that is always a challenge depending on the geographical location you are in or the type of agriculture promoted in each member state.

The intensive agriculture [for example] you have in the Netherlands is one aspect but you have effectively subsistence agriculture in some newer member states. So there’s a contrast right round the EU.

You have to have specific policies to maintain people on the land, and help them produce more in the context of environmental sustainability but also we are conscious of the fact that we do need more food to feed the world’s population in the future.

“You’d need four Common Agricultural Policies to keep everyone happy.”
Phil Hogan

On greening

As far as the CAP is concerned, there is a commitment that we will have a review of greening and ecological focus area rules starting in 2016. We have set up a dedicated unit in DG Agriculture to help member states interpret the present proposals.

Member states – at least from what they are telling me – are very happy with the level of engagement for ensuring people understand what is intended by a particular regulation, how it is to be interpreted and that there is a harmonised view across the EU.

In relation to permanent pasture, the new definition that was included in the regulations will also be part of the review in 2016 to see if it is working satisfactorily and I am sure the five-year rule will come up as part of that review.

But there will be no review until the timescale envisaged by the co-legislators.

On reducing red tape

Regulation is an issue everywhere across the EU. That is why simplification of the CAP is one of my top priorities for 2015. I hope member states will do as much as I am proposing to reduce regulations for producers and for the food industry.

It is a shared approach.

Often the commission is blamed for regulations that perhaps are a member state’s responsibility. So I would ask member states to engage with the commission to simplify the CAP and reduce the administrative burden on the producer and the food industry.

On farm safety

There has been a significant increase in farm deaths in 2014, which is quite worrying. Every action is on the table that would help to ensure our farmers and their families are safe in the job they are doing.

It is a very risky job that they are doing every day. But nevertheless there are certain measures that can be taken to ensure the covers of power take-offs (ptos) and other machinery covers that are required [are in place] and that these issues are not neglected.

It would be a last resort to actually penalise farmers for not doing the essential work that they should be doing to protect themselves and their families – if we had to deduct farm payment measures for non-compliance in the farm safety area.

But I am prepared to go as far as considering that if I don’t see the type of action taken by farmers to protect themselves and their families in the context of farm safety. It is a very serious matter and one that is well known in my home country of Ireland.

“It would be a last resort to actually penalise farmers for not doing the essential work that they should be doing to protect themselves and their families – if we had to deduct farm payment measures for non-compliance in the farm safety area.”
Phil Hogan

They have seen in the past year a lot of suffering, a lot of tragedy, because of inadequate attention to essential and basic safety measures, which is unacceptable.

On dairy

I hear certain member states saying “we’re going to have a big problem after milk quotas are abolished”. I don’t see it yet. Global food options clearly indicate an increase in the prices of butter and skimmed milk powder.

In January 2013, the average price of milk across the EU was 32c/litre (23p/litre). The average price of milk in November 2014 was 32.4c/litre (23.8p/litre). So there is very little difference between the price of milk in early 2013 and roughly the end of 2014.

In the past few months there has been no major [milk price] drop, with the exception of the Baltic states and Finland. They are receiving income support as a direct result of the Russian import ban – because of the ban they are in a different category to other member states.

I think prices on the dairy side are quite satisfactory at the moment, notwithstanding the market problems arising because of the Russian ban and arising from the enhanced production that has been there in Europe.

You must remember that we have increased production – European farmers have increased production – by 5.5% in 2014 notwithstanding the fact that they know that milk quotas are going to end on 31 March and they are going to have to pay a superlevy.

Farmers have to take action themselves in order to reduce production if they don’t wish to pay a superlevy. So action is in their own hands.

In the UK, there are certain contracts which are causing some difficulties which are gathering a lot of media attention and I can understand why. But the milk market observatory has indicated to me that the milk price for the vast majority of farmers in the UK is about 31p.

So I don’t see any intervention necessary in that context. These are contracts that have been entered into privately – they are commercial agreements between the farmers and their outlets.

On sugar

Under CAP reform, it was agreed that sugar quotas will go in 2017. That will continue to be the case.

But Italy and others have asked for a study to be carried out about the implication of the abolition and to be able to plan ahead in terms of the consequences of the sugar sector.

I have agreed to set up a dedicated expert group – a technical group where all member states will be represented – to be able to tease out the issues in the context of 2017 and the abolition of sugar quotas.

The sugar sector went through a very serious and quite expensive restructuring some years ago.

A lot of European taxpayers’ money was put into the sector for refineries and growers alike. The rules were certainly outlined at that stage on where the end game was likely to be.

We have to be competitive in the EU in order to be able to deal with the imports from African, Caribbean and Pacific Group of States countries and South America. This will be a challenge in the context of any negotiations we have as well with the US.

Sugar has to be a competitive sector like so many other sectors covered by the CAP.

We will be continuing with the market orientation of the CAP as agreed in 2013 and that includes sugar. So sugar quotas will be terminated in 2017.

On consumers

There is a lot of work to be done between the agricultural community and consumers in showing how we depend on each other – not only for food but also the manner of production of that food in the context of the environment and trade negotiations worldwide.

I think there is a challenge to the agricultural sector to engage more with NGOs.

A big effort made in terms of the environment during the latest CAP reform and as a formal environmental minister I welcome the emphasis on sustainability.

On young farmers

The latest CAP reform for the first time gave additional support to young farmers. I am equally concerned about additional financial instruments being made available for young farmers not just to help them buy land but to be able to invest in their farms and in knowledge and innovation.

Each member state has a responsibility to have in place benign policies on taxation and inheritance so they can help the transfer to the younger generation. I am anxious to secure a lot of progress during my five years on the issue of generational change in agriculture.