World Conference on Family Farming Bilbao, Spain, 5-7 October 2011

Supporting sustainable small and family farming in the reformed CAP

Address by Antonis Constantinou, Director for Rural Development Programs II, Directorate General for Agriculture and Rural Development, European Commission

Ladies and gentlemen Allow me first to express my sincerest thanks to the organizers of this conference for their invitation to be here today. It is indeed a great honour and a pleasure for me to represent the European Commission at this important world conference on family farming.

Today in exactly one week, the European Commission will table legislative proposals for a profound reform of the Common Agricultural Policy, a reform that aims to improve, once more, the capacity of this important policy to respond to new challenges, those that are of global nature such as climate change, food security, sustainable development and the conservation of natural resources, and
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those that are perhaps more specific such as how to make the best use of the increased diversity of agriculture and food production systems in the enlarged EU and how to address the needs of small family farms all over Europe. As you know the debate on the reform of the CAP was initiated last year with a public consultation and an important stakeholder conference held in Brussels in July 2010. In his closing speech Commissioner Ciolos identified 7 important challenges that the new CAP should take up and address: First, globalization and the need for Europe to contribute to world food security in all its complexity without turning back and without putting any obstacles to the increase of agricultural production in developing countries. Second, the challenge of food and nutrition for all and of Europe taking up its responsibilities in the area of research and innovation to improve productivity and yields. While promoting strongly our European quality products on world markets, we should also listen carefully to the voice of our own consumers, often manifested in local and regional markets, in order to benefit from the rich and diverse traditions of Europe concerning agriculture and food products. Third, the environmental challenge in all its different aspects from climate change mitigation and adaptation to halting the loss of biodiversity and to preserving the quality of soil and water, keeping in mind that the sustainable management of our natural resources is not only an environmental but also an economic and social necessity. Fourth, the economic challenges facing farming and agriculture and the need for providing a safety net through better risk and crisis management, by

dealing with excessive market and price volatility and by creating new relationships within the food chain. Fifth, the territorial challenge which calls for maintaining agriculture in all rural territories, strengthening its links with the rest of the economy and using the solid foundation provided by our common agricultural and rural development policy to work towards achieving the objectives of Europe 2020 for smart, sustainable and inclusive growth. Sixth, the challenge of diversity which has increased considerably with enlargement, and finally Seventh, the challenge of simplification which can help to make a strong CAP more transparent and more understandable to the citizen. In the mean time these challenges have been translated into strategic objectives and, in the case of the rural development policy, to so called operational priorities linking the second pillar of the CAP to the EU2020 Strategy for smart, sustainable and inclusive growth. MS will be required to set quantified targets and to adopt program measures specifically to: Foster knowledge transfer in agriculture & forestry and strengthen the link with research and innovation Enhance the competitiveness of agriculture and improve farm viability Promote better organisation along the food chain and risk management in agriculture Preserve & enhance ecosystems dependent on agriculture & forestry with a focus on biodiversity, water and soil management

Propmote resource efficiency & the transition to low-carbon economy in agri-food and forestry sectors, and

Realise the jobs potential & foster local development of rural areas with a focus on diversification and small business development, provision of essential services, social inclusion and poverty reduction. The new policy recognizes that in the age of climate change, renewable energy and green growth effective rural-urban partnerships are required to tackle the issue of sustainable development. At the local level it is necessary that the various EU fund interventions are incorporated into a common and coherent strategic concept and that local governance be improved through participative approaches and effective local action groups and partnerships. At the same time, the new policy recognizes the fundamental role of agriculture and forestry for the development of rural areas. These two sectors make up 78% of land use, they preserve the environment and landscape and deliver important eco-system services. Farming has multiple links with the rest of the economy as the basis for many other activities but also because 36% of farmers have another gainful activity.

In this context small and family farming is again in the focus with good reason: 70% of the EU's 13,7 million farms are below 5 ha the agro-food sector accounts for 17.5 million jobs and family farming provides the main foundation for that, given that 80% of farm labour is family labour.

 small family farms are usually associated with important landscape features and a rural mosaic that needs to be preserved. The new CAP takes account of these realities. Small and family farms can look forward to enhanced possibilities to receive support under both pillars of the CAP. Under the first pillar, through a simplified scheme that aims to provide effective support with a minimum of bureaucracy and controls and through the notion of active farmer that aims to exclude non-agricultural companies and, to the extent possible, so called sofa farmers from certain income support payments. Under the second pillar, through a specific measure to finance further development of small farms all over Europe and by combining various measures into packages tailored specifically to small and family farms. In addition to the classical forms of producer groups and associations, there are proposals to finance, among other things, various forms of cooperation among farmers in order to set up logistic platforms, organize local markets and short supply chains, promote quality schemes, implement agroenvironmental measures at a bigger scale, participate with other players in so called operational groups under the European Innovation Partnership to search for innovative solutions to their problems etc.etc. Ladies and gentlemen The detailed proposals of the Commission for these and other issues related to agriculture and to small and family farming in Europe will be known in less that one week. On this occasion, the Commission will organize a Europe-wide information and communication campaign which I invite you to follow closely.

For the time being I would like to close by wishing you the best of success for this important conference which looks at family farming from a global and not only European angle. I look forward to be enlightened by the many distinguished speakers that have been invited and are here today.