Economy and Ecology: Twin Span for a Qualitative Agricultural Production in Europe?

Abstract

It is an objective of the European Union (EU) to reach the right balance between a competitive agricultural production (economy) and the respect for nature and environment (ecology). Since Agenda 2000, the Common Agricultural Policy (CAP) has two pillars: the market and income policy (first pillar) and the sustainable development of rural areas (second pillar). In both pillars the 2003 CAP reform and the 2008 Health Check brought greater quality to environmental integration. Concerning market and income policy, the cross-compliance is the core instrument. The 2003 CAP reform also involved decoupling most direct payments from production. From 2005 (2007 at the latest) a single payment scheme was established, based on historical reference amounts. As regards the rural development policy, compliance with minimum environmental standards is a condition for eligibility for support under several rural development measures. The complexity of the relationship between agriculture and the environment has conditioned the approach to environmental integration in the context of the CAP. Central to the understanding of this relationship is the principle of Good Agricultural Practice which corresponds to the type of farming that a reasonable farmer would follow in the region concerned. The ecological footprint is a useful indicator for assessing progress on the EU Resource Strategy. A public consultation held in 2010, identified food security, environment protection and rural diversity as the three main goals of the future policy. The European Commission unveiled last November 2010 its blueprint for reforming the CAP and the debate was started July 2011.