{"id":2947,"date":"2018-07-02T21:29:53","date_gmt":"2018-07-02T21:29:53","guid":{"rendered":"http:\/\/legalblog.ie\/cap-price-support\/"},"modified":"2022-11-13T20:55:40","modified_gmt":"2022-11-13T20:55:40","slug":"cap-price-support","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/cap-price-support\/","title":{"rendered":"CAP Price Support [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#The_Common_Agricultural_Policy\" title=\"The Common Agricultural Policy\">The Common Agricultural Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Competition_Rules\" title=\"Competition Rules\">Competition Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Reform_of_the_CAP\" title=\"Reform of the CAP\">Reform of the CAP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Consolidated_Regulation\" title=\"Consolidated Regulation\">Consolidated Regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Documents\" title=\"Documents\">Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Aids_and_refunds_related_to_the_common_organisation_of_markets\" title=\"Aids and refunds related to the common organisation of markets\">Aids and refunds related to the common organisation of markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Documents-2\" title=\"Documents\">Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/cap-price-support\/#Imports_and_Exports\" title=\"Imports and Exports\">Imports and Exports<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_Common_Agricultural_Policy\"><\/span>The Common Agricultural Policy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Common Agricultural Policy consumes a large part of the EU budget, through the \u00a0European Agricultural Guidance and Guarantee Fund (EAGGF). The Guarantee element finances the expenditure on market organisation and rural development measures.\u00a0 The Guidance element finances other rural development expenditures.<\/p>\n<p>The fund is administered by the Commission and by member states.\u00a0 Institutions within states are designated for the administration of the CAP on behalf of the Commission. Paying agencies are approved, which deal with claims, compliance with rules, ensure payments are fully an effectively recorded, and where necessary, that documentation is procured. The states must account to the Commission for their authorities and payment agencies that administer the CAP.<\/p>\n<p>The resources required to fund the CAP is made available to the member states by the Commission by means of advances.\u00a0 The Commission reimburses the expenditure incurred by the states.\u00a0 The states forward account for their expenditures to the Commission with proof regarding its accuracy and completeness.\u00a0 The Commission presents a report on the administration of the fund to the Council and the Parliament in each year.\u00a0 The fund is financed from the European Union\\&#8217;s own resources by way of contributions from member states and VAT.<\/p>\n<p>The rules of competition apply to agriculture but with modifications.\u00a0 They do not apply to agreements and practices that are an integral part of the market organisation that are necessary for obtaining the objectives of the Common Agricultural Policy. They do not apply to agreements between farmers and farmers\u2019 associations provided they do not include an obligation to charge identical prices, exclude competition or jeopardise the objectives of the CAP.<\/p>\n<p>The European Commission can take emergency measures against market disturbance caused by significant price fluctuations or when there are threats thereof. It may also take action to deal with the market impact of measures taken to combat the spread of animal diseases or serious market disturbances caused by a loss of consumer confidence as a result of public, animal or plant health and disease risks. In case of major market disruptions, the reserve for crises provides additional support to finance these measures.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Competition_Rules\"><\/span>Competition Rules<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the matters to be decided under the common agricultural policy is whether the rules on competition laid down in the Treaty are to apply to the production of, and trade in, agricultural products. This Regulation codifies measures previously adopted in the matter.<\/p>\n<p>Council Regulation (EC) No 1184\/2006 of 24 July 2006 applying certain rules of competition to the production of and trade in certain agricultural products.<\/p>\n<p>The rules of competition apply to the agricultural sector. The activities of farmers and agricultural organisations, such as cooperatives, fall under these provisions.<\/p>\n<p>This Regulation codifies Council Regulation No 26\/62 of 4 April 1962 applying certain rules of competition to production of and trade in agricultural products. It stipulates that Articles 81 and 82 of the Treaty apply to the production of, and trade in, agricultural products.<\/p>\n<p>There are, however, three exceptions. These general rules do not apply to:<\/p>\n<ul>\n<li>agreements, decisions and practices that form an integral part of a national market organisation;<\/li>\n<li>agreements, decisions and practices that are necessary in order to attain the objectives of the common agricultural policy (CAP);<\/li>\n<li>certain agreements between farmers or farmers&#8217; associations belonging to a single Member State, provided such agreements do not introduce an obligation to charge identical prices, exclude competition or jeopardise the objectives of the CAP.<\/li>\n<\/ul>\n<p>Furthermore, certain common market organisations, including those for fruit and vegetables and for wine, contain specific provisions on interbranch organisations, which are excluded from the scope of Article 81 on certain conditions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reform_of_the_CAP\"><\/span>Reform of the CAP<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Common Agricultural Policy has been progressively reformed since the early 1990s.\u00a0 Price supports have been reduced with the substitution of direct aid for farmers.\u00a0 This has culminated in the single farm payment provision in 2005.<\/p>\n<p>There were formerly a number of separate regulations dealing with the common organisation of markets in various agricultural products.\u00a0 Most of these have been amalgamated into a smaller number of regulations.<\/p>\n<p>The common market organisation regulation covers 21 markets.\u00a0 They provide a single framework governing the domestic market and trade with outside the EU.\u00a0 They govern public intervention in the market.<\/p>\n<p>There are provisions for public intervention, where products are purchased and stored by EU governments or their agencies until their disposal, and aid granted for the storage of products by private sector organisations.<\/p>\n<p>A reference price is fixed by specified certain methods.\u00a0 The intervention price is specified in relation to the reference price.\u00a0 Prices are specified for cereals, beef and veal, milk, butter, skimmed milk powder, pig meat, cereals, paddy rice, rice and raw sugar. The EU may purchase products where their price falls below the intervention level. Disposals of products from intervention must ensure market stability and equal treatment of buyers.<\/p>\n<p>Private storage aids are provided for certain products such as cream, cheese, and butter.\u00a0 It is also possible for other products.<\/p>\n<p>National production quotas are fixed for sugar and formerly for milk.\u00a0 States then distribute these quotas products between undertakings.\u00a0 Regulations specify the method of transferring quotas between undertakings and the management of surplus production.<\/p>\n<p>The EU may establish standards for the marketing of products. In certain sectors, producer organisations may be established subject to compliance with certain conditions.<\/p>\n<p>The system of milk quotas expired on 31 March 2015 and sugar quotas ended in 2017, allowing EU producers to be more competitive both domestically and globally.<\/p>\n<p>The system of vine planting rights expired at the end of 2015. A system to authorise new plantings applies from 2016 until 2030, which provides for an increase in the planted area of up to 1% per year.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consolidated_Regulation\"><\/span>Consolidated Regulation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1370\/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products.It lays down the EU rules for fixing prices, levies, aid, refunds and quotas for various agricultural products.<\/p>\n<p>The regulation is based on Article 43(3) of the Treaty on the Functioning of the European Union (TFEU), meaning that it is a regulation adopted by the Council.<\/p>\n<p>The legislation sets out conditions for:<\/p>\n<ul>\n<li>reference thresholds for cereals, rice, sugar, beef and veal, milk and dairy products such as butter, pigmeat and olive oil;<\/li>\n<li>public intervention prices* for wheat, durum wheat, barley, maize, rice, skimmed milk powder, butter, beef and veal;<\/li>\n<li>ceilings on wheat (3 million tonnes), butter (50,000 tonnes) and skimmed milk powder (109,000 tonnes) which the EU may buy and take off the market over a certain period;<\/li>\n<li>aid for private storage for products ranging from sugar and olive oil to cheese and beef;<\/li>\n<li>EU finance for subsidised fruit, vegetables and milk for schools;<\/li>\n<li>charges, refunds and quotas on sugar production until 30 September 2017.<\/li>\n<\/ul>\n<p>The European Commission uses implementing acts to:<\/p>\n<ul>\n<li>review and adjust reference thresholds in light of production costs and market trends;<br \/>\nincrease or reduce public intervention prices;<\/li>\n<li>organise tendering procedures for public intervention and storage aids;<\/li>\n<li>set the maximum level of EU aid for school fruit, vegetables and milk and assess these every 3 years;<\/li>\n<li>fix the level of export refunds according to market conditions.<\/li>\n<\/ul>\n<p>The Committee for the Common Organisation of the Agricultural Markets assists the Commission in implementing the legislation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Documents\"><\/span>Documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Council Regulation (EU) No 1370\/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, pp. 12-19)<\/p>\n<p>Successive amendments to Regulation (EU) No 1370\/2013 have been incorporated into the original text. This consolidated version is of documentary value only.<\/p>\n<p>Regulation (EU) No 510\/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216\/2009 and (EC) No 614\/2009 (OJ L 150, 20.5.2014, pp. 1-58)<\/p>\n<p>Regulation (EU) No 1308\/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922\/72, (EEC) No 234\/79, (EC) No 1037\/2001 and (EC) No 1234\/2007 (OJ L 347, 20.12.2013, pp. 671-854)<\/p>\n<p>See consolidated version.<\/p>\n<p>Regulation (EU) No 1303\/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083\/2006 (OJ L 347, 20.12.2013, pp. 320-469)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Aids_and_refunds_related_to_the_common_organisation_of_markets\"><\/span>Aids and refunds related to the common organisation of markets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It lays down the EU rules for fixing prices, levies, aid, refunds and quotas for various agricultural products. The regulation is based on Article 43(3) of the Treaty on the Functioning of the European Union (TFEU), meaning that it is a regulation adopted by the Council.<\/p>\n<p>The legislation sets out conditions for:<\/p>\n<ul>\n<li>reference thresholds for cereals, rice, sugar, beef and veal, milk and dairy products such as butter, pigmeat and olive oil;<\/li>\n<li>public intervention prices* for wheat, durum wheat, barley, maize, rice, skimmed milk powder, butter, beef and veal;<\/li>\n<li>ceilings on wheat (3 million tonnes), butter (50,000 tonnes) and skimmed milk powder (109,000 tonnes) which the EU may buy and take off the market over a certain period;<\/li>\n<li>aid for private storage for products ranging from sugar and olive oil to cheese and beef;<\/li>\n<li>EU finance for subsidised fruit, vegetables and milk for schools;<\/li>\n<li>charges, refunds and quotas on sugar production until 30 September 2017.<\/li>\n<\/ul>\n<p>The European Commission uses implementing acts to:<\/p>\n<ul>\n<li>review and adjust reference thresholds in light of production costs and market trends;<\/li>\n<li>increase or reduce public intervention prices;<\/li>\n<li>organise tendering procedures for public intervention and storage aids;<\/li>\n<li>set the maximum level of EU aid for school fruit, vegetables and milk and assess these every 3 years;<\/li>\n<li>fix the level of export refunds according to market conditions.<\/li>\n<\/ul>\n<p>The Committee for the Common Organisation of the Agricultural Markets assists the Commission in implementing the legislation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Documents-2\"><\/span>Documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Council Regulation (EU) No 1370\/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, pp. 12-19)<\/p>\n<p>Successive amendments to Regulation (EU) No 1370\/2013 have been incorporated into the original text. This consolidated version is of documentary value only.<\/p>\n<p>Regulation (EU) No 510\/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216\/2009 and (EC) No 614\/2009 (OJ L 150, 20.5.2014, pp. 1-58)<\/p>\n<p>Regulation (EU) No 1308\/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922\/72, (EEC) No 234\/79, (EC) No 1037\/2001 and (EC) No 1234\/2007 (OJ L 347, 20.12.2013, pp. 671-854)<\/p>\n<p>See consolidated version.<\/p>\n<p>Regulation (EU) No 1303\/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083\/2006 (OJ L 347, 20.12.2013, pp. 320-469)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Imports_and_Exports\"><\/span>Imports and Exports<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Import and export licences are generally required to support the price levels.\u00a0 Import licenses are required for most products including cereals, sugar, bananas, live plants, beef and veal, pig meat, sheep meat, goat meat, poultry meat, milk products, eggs and agricultural ethane, ethyl, alcohol.\u00a0 Import duties apply in the Customs Tariff.\u00a0 Quotas are managed by the Commission and administered so as to avoid discrimination. The Commission may take steps to restrict imports in the interest of the market organisation<\/p>\n<p>Export licences are required for products, in particular, cereal, rice, sugar, beef, veal, pig meat, sheep meat, goat meat, poultry meat, milk, milk products, eggs and agricultural ethyl, alcohol sector.<\/p>\n<p>Exports may be supported by export refunds which cover the difference between global and EU prices.\u00a0 This may differ depending on the destination.\u00a0 They are adjusted regularly in light of community and global market developments.<\/p>\n<p>The EU may take other measures through the Guarantee Fund.\u00a0 They may, for example, involve meeting part of state expenditure in respect of program such as for animal disease, and measures to encourage adjustment in the supply market.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-2947\" data-postid=\"2947\" class=\"themify_builder_content themify_builder_content-2947 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->","protected":false},"excerpt":{"rendered":"<p>The Common Agricultural Policy The Common Agricultural Policy consumes a large part of the EU budget, through the \u00a0European Agricultural Guidance and Guarantee Fund (EAGGF). The Guarantee element finances the expenditure on market organisation and rural development measures.\u00a0 The Guidance element finances other rural development expenditures. The fund is administered by the Commission and by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[118,94],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2947"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=2947"}],"version-history":[{"count":10,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2947\/revisions"}],"predecessor-version":[{"id":20353,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2947\/revisions\/20353"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=2947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=2947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=2947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}