The European Commission list direct aid amounts as presented in table 1. Only some of this support is coupled, as table 1 makes clear.
€ million 20091 20081 2007 2006 2005 2004 2003 Decoupled direct aids SPS 28,450 27,220 28,119 14,226 0 0 0 SAPS 3,808 3,065 2,083 1,721 1,449 0 0 Separate sugar payment 255 209 167 0 0 0 0 Separate fruit and vegetables payment 12 0 0 0 0 0 0 Other direct aids Arable Crops 1,850 1,852 1,853 7,951 17,158 17,095 16,251 Beef 1,661 1,659 1,697 2,637 7,730 7,312 7,363 Sheep and Goats 326 335 330 907 1,837 1,471 2,084 Dairy 0 0 0 1,454 1,370 0 0 POSEI 422 418 81 81 185 110 244 Fruit and Veg2 429 224 202 255 483 595 544 Sugar 26 30 17 0 0 0 0 Rice 173 171 173 261 427 110 117 Olive groves 98 98 119 2,312 2,240 2,302 2,318 Tobacco 305 293 336 811 918 924 950 Silkworms 1 1 1 0 0 0 0 Cotton 262 260 254 0 0 0 0 Payments for specific types of farming and quality production 438 435 420 199 0 0 0 Other (direct aids) — — 761 958 75 0 0 Additional amounts of aid 562 563 434 316 0 0 0 Ancillary direct aids (reliquats, small producers, agrimonetary aids, etc.) 0 0 0 0 4 1 -7 Recoveries 0 0 0 -39 -21 -12 -1 Total 39,077 36,832 37,046 34,051 33,856 29,908 29,864 1 Data for these years is based on budget commitments, rather than actual spending. 2 Includes starch potatoes and grain legumes. Source: Draft General Budget 2009, EC.
Agreement has been reached on phasing out several of the remaining coupled payments, with their amounts usually being added to the decoupled SPS and SAPS, such that decoupling is budget neutral. The payments involved and relevant dates are presented in table 2. Decoupling is also a major focus of the current health check negotiations, where agreement is expected to be reached on phasing out several other coupled payments (with their amounts again being added to the SPS and SAPS), with expected phase-outs as presented in table 3. The UK “Vision for the Common Agricultural Policy” is clear that in the longer term, direct payments should be phased out completely, with payments to farmers targeted at delivering public benefits, including environmental benefits, through a re-shaped pillar two.
Sector Current situation When scheduled to be phased out POSEI (payments for bananas in the outermost regions) 75 per cent. coupled contribution to national assistance programmes for banana growers No end date is fixed for this aid Fruit and vegetables The EU Processed Fruit and Vegetables Regime was subject to major reform in 2007, with agreement reached on a phased approach to full decoupling: Tomatoes for processing: 1 January 2012 Other processing aids: 1 January 2013 Tomatoes for processing—member states may allow a maximum four-year transitional period provided that the coupled element of the payment does not exceed 50 per cent. of the corresponding component of the national ceiling Other processing aids—member states may allow a maximum five-year transitional period until at the latest 31 December 2012, provided that after 31 December 2010, the coupled proportion of the payment does not exceed 75 per cent. of the corresponding component of the national ceiling in 2011 and 2012 respectively Sugar There are no direct aids in the sugar sector, but there is a transitional fund to help the sugar sector restructure The transitional aid is due to end in 2010 There are also separate sugar payments as part of the Single Payment Scheme Tobacco Progressive reduction in coupled support from 2006 to 2010 2010 Silkworms 100 per cent. coupled payment. No end date is fixed for this payment Cotton 65 per cent./35 per cent. split of decoupled/coupled payments Agriculture Council agreed in 2008 to maintain coupled aid payments at these levels
Sector Current situation Health Check proposal Crops Member states may retain partial coupled payments in: Full decoupling from 2010 and integrate into Single Payment Scheme (SPS) Arable Crops Payments (up to 25 per cent.) Durum Wheat Quality Supplement (up to 40 per cent.) Hops (up to 25 per cent.) 100 per cent. exclusion of certain or all species Olive oil Aid for olive groves could remain up to 40 per cent. coupled Full decoupling in 2010 and integration in SPS Livestock Member States may retain coupled payments in: Slaughter premium for young animals, slaughter premium for adult animals and special beef premium: full decoupling in two steps (50 per cent. coupled in 2010, 50 per cent. coupled in 2011 and 100 per cent. decoupled in 2012 and onwards). Shift to SPS Suckler Cow Premium (up to 100 per cent.) No change in suckler cow and sheep and goatmeat Special beef premium (up to 75 per cent.) Slaughter Premium (up to 40 per cent. for adults and 100 per cent. for calves) Sheep and Goats (up to 50 per cent.) Flax and Hemp Option of 25 per cent. partial coupling as arable crops area payment. Short fibre flax to be phased out in 2008-09. Long fibre flax to be increased to €40/tonne in 2009-10. Decouple long fibre flax processing aid and shift to SPS in 2 steps: 50 per cent. in 2011 and full decoupling in 2013. Dried Fodder Retain processing aid (per tonne, uniform for dehydrated and dried fodder) Decouple processing aid and shift to SPS in 2011 Starch potato Aid for starch producers (60 per cent. of pre-2003 level) paid per tonne of starch delivered. A transformation aid is granted to the manufacturers per tonne of potato starch with guaranteed minimum prices within the quota limit. Finally, production refunds for starch are granted when using starch for the production of certain goods Decouple aid to growers and shift to SPS (phasing out in 2013, in two steps: 50 per cent. in 2011 and full decoupling in 2013); decouple processing aid and shift to SPS in 2011; removal of quotas by 2013; abolish production refund in 2009 Energy crop premium Aid of EUR 45 per hectare for energy crops for the production of biofuels and electric and thermal energy produced from biomass Abolish in 2010 Durum Wheat Aid of EUR 40 per hectare, granted subject to the use of certain quantities of certified seeds of varieties recognised as being of high quality for the production of semolina or pasta Abolition and shift to SPS in 2010 Protein crops Aid of EUR 55, 57 per hectare of protein crops (peas, field beans, lupins) Decouple and shift into SPS in 2010 Specific payment for rice Aid per hectare, the value set according to the yields in the member states concerned Decouple and shift to SPS (50 per cent. in 2010 and further 50 per cent. in 2012) Nuts Aid per hectare granted to farmers producing nuts, with a possibility of granting additional national aid Decouple and shift to SPS in 2010 Single Area Payment Scheme (SAPS) New member states have to change to SPS by 2010-11 Prolong possibility of applying SAPS until end 2013