A.Miglavs. Options for future EU CAP – from vision to reality and back...

Andris Miglavs, Latvijas Valsts agrārās ekonomikas institūts (LVAEI)

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Options for future EU CAP – from vision to reality and back...

Andris Miglavs
Economist,  Latvian State Institute of Agrarian Economics 

How to work?
What do we not like
What do we want
What is needed to achieve? 

What do we not like?  

People are leaving countryside, because of lower quality of life, 
Not expected infrastructure is available. Worse environment in countryside compare to urban
Unequal DP among the countries 
Policy and its mechanisms are too complicated
RDP is rather AP instead of being  real RDP
It’s not prestigue to live in countryside for youg people 
Small scale local food production is decreasing

Support adresses rather interests of comercial producers 
Too litle is being done by the people themselves, rathers relying on somebody from outside
Too big administrative and burocratic burden to start production
 Rural areas are becoming too dependent on social payments 
Too high administrative burden on small projects
Most of support goes to urban areas 

There is no motivation for young people to stay in rural areas – insufficient education level available, and culture availability
little opportunities for employment 
Too egocentric motivation to request the policy support
Distorting EU state support policies – impact also on food quality, market prices, people thinking 
Diferent interpretation on food safety issues

EU policy is too tolerant toward developing contries trade attemptions
Public attitudes are being destorted; 
Still electronic communication infrastructure is not available – people are out of the modern social environment
Local (internal) market is not suffiently developed 
Payments are not sufficiently linked to farming activity 
Cooparetion is not sufficiently developed

Too open local market 
EU CAP is distorting also global trade
Diffrenet support rates also within the countries 
Bluring structure of policy measures 
Too pressing administrative burden, in particular on smaller beneficiaries
Missleading use of term “public demands”, not based on research 
DP allow non efficient farming 

The agricultural land has become as a speculation object 
Current EU CAP RDP does not promote rural development 
Payment approach is eroding the way of people thinkig
Rural areas are becoming rather an exclusive area to live in terms on costs  
CAP does not ensure competitiveness of EU agrifood on international market

RD projects should cover larger areas and involve  also non agricultural actors  
Poduction for local use is not suffieciently promoted 

What do we want 

Change in the public understanding, demand and thinking 
To reshape AP and RP in order to make it attractive for people to live and work in countryside
To simplify the policy and adjust also to urban understanding 
More emphasis on protection of nature and environment 
To promote innovations in agrifood sector 

Agrifood production should be treeted as commercial sector and switch the existing funds towards rural infrastructure 
Switch of all the payments to rural employee “per head payment”, not dependent on agricultural activity
To have rural families as real rural value 
To support local products  - through production and also marketing support measures

Developed support instruments to any (also non agricultural) rural business development in order to address additional costs 
Posibility for young people to start business in countryside
Developed infrastructure for business in countryside 
Policy development based on research and better analysis 
Changed public attitudes towards positive thinking  

Similar to urban social and public infrastructure is available in countryside 
 positive innovation environment in countryside to find and have new and efficient etrepreneurs
Improved quality of life in rurals area; 
CAP and RDP promoted amongst rural people 
Simplified policy administration 
Market (minimum price) garanties are developed
CAP developed towards real complex RDP

Latvijas Valsts agrārās ekonomikas institūts (LVAEI)


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