Stefan Tangermann is an internationally renowned agricultural economist who writes for IEG Policy on a range of policy-related issues. He is a former Director for Trade and Agriculture at the Organisation for Economic Co-operation and Development (OECD), and is a retired professor at the Department of Agricultural Economics and Rural Development at the University of Göttingen, Germany.
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Latest From Stefan Tangermann
While many people find the prospect of Brexit regrettable for a number of reasons, not only in the EU but also the UK, for analysts interested in the design of agricultural policies it involves at least one positive element.
The Commission’s proposals for more subsidiarity and an emphasis on performance could lead to a “step change” in the post-2020 Common Agricultural Policy, but “capping” and additional support for young farmers will be counterproductive for the sector’s competitiveness. In the long run, expenditure should be used to promote rural development and public goods instead of the continued reliance on direct payments and coupled support.
In the community of agricultural policy makers, assistance to young farmers is considered not only an innocent and highly desirable type of farm support but an absolute must. It has been a firm element of the CAP for a number of years and national agricultural policies of EU member states contain all sorts of measures to assist the establishment of young farmers.
Preparations for the CAP post-2020 have reached a crucial stage. The European Commission plans to adopt a communication document on November 29 that will outline its views on future directions for the CAP.
The UK might be heading for a 'hard' Brexit. Is such an outcome also in the interest of the EU27? And what would it mean for the future of the Common Agricultural Policy?