By Elsa Hermanns
Lately, all over Europe, there have been several agricultural sector demonstrations. These are due to a deep-seated malaise in the sector, especially among farmers and livestock breeders. Even though agriculture has always been an economic pillar and a source of national identity, it now seems to be at a crossroads. The domain is caught between fierce global competition and European reforms, which are often perceived as out of touch with the realities on the ground.
The immediate trigger for the recent farmers' anger was the EU-Mercosur agreement, which rekindled fears of increased competition with low-cost imported agricultural products from other parts of the world. Yet, this tension is not new. Since the first reforms of the Common Agricultural Policy (CAP) in the 1990s, farmers - and French farmers in particular - have seen their sector undergo major structural changes whether in terms of trade, regulations and in their way of working in general. These changes were often at the cost of their economic viability. As a result, the question arises: Is the European agricultural sector on the verge of disappearing?
CAP Reforms With Far-Reaching Consequences
Until the end of the 1980s, the Common Agricultural Policy (CAP) was the synonym of prosperity. It has guaranteed prices, governmental aid thanks to government intervention, and community preferences that have enabled countries like France to establish themselves as a leading agricultural player. But the reforms of 1992 and 2003 upset this balance.
The MacSharry reform (1992) marked the transition from price support to a system of direct aid linked to agricultural production. This transition, which was supposed to regulate excess production and respond to international pressure, accentuated inequalities between farms. Large farms, better adapted to the new situation, have captured most of the subsidies, while small farms have periodically come close to bankruptcy.
As a result of farm protests and new environmental demands, the 2003 reform had to be implemented. This reform, which was supposed to bring stability, deepened the downward spiral in the sector. It introduced a total decoupling of support, with direct payments allocated according to the number of hectares on the farm and the introduction of stricter environmental measures. While some farmers have been able to take advantage of this increased flexibility, many have had to deal with more restrictive standards, increased competition and rising production costs.
A Model in Crisis
The consequences of these reforms can be seen today: France has lost almost half its farms in forty years. Belgium is losing market share at a staggering rate, while Eastern European countries are getting bigger, thanks to their ridiculously low production costs. The family farming model, which has traditionally been predominant, is gradually giving way to vast industrial farms that are better equipped to cope with globalisation.
What's more, new regulations, notably those stemming from the European Green Deal, are adding further pressure. Far from being opposed to ecology, many farmers are denouncing a transition that is taking place too quickly and with insufficient support, leaving them vulnerable to foreign competitors with far less stringent requirements.
Finally, the reduction in the CAP budget for the 2021-2027 programming period is only accentuating tensions. With a shrinking budget and aid increasingly concentrated on large-scale structures, medium-sized farms - the backbone of the French agricultural model - are finding themselves increasingly vulnerable. The entire agricultural sector and the activities that depend on it are being undermined.
What Way Out?
There is an urgent need to reconsider the role of the CAP and its impact on European agriculture. The European Union needs to take greater account of specific national circumstances and propose solutions tailored to the realities on the ground. Possible avenues include a fairer distribution of aid, greater support for small farms and harmonisation of environmental standards at the global level, all of which could contribute to a more resilient and sustainable agriculture.
If countries like France, Belgium and the Netherlands want to preserve their sovereignty and guarantee their food independence, they will have to pull out all the stops in European negotiations to obtain a fairer CAP that is better adapted to the challenges of the 21st century. If we ignore the warnings of farmers, we risk losing a whole part of our identity and agriculture.
In addition, a more ambitious national strategy could be envisaged, based on tighter regulation of agricultural imports and a policy of relocating production. Accelerated support for innovation and sustainable agriculture would also make it possible to reconcile competitiveness and respect for the environment. Finally, consumers have a crucial role to play in favouring local, quality products. But at a European level, countries need to agree on their agricultural priorities and find common ground. The CAP was created to promote a common agricultural policy, and this idea needs to be put back into the minds of decision-makers.
The future of agriculture cannot be reduced to a passive adaptation to the decisions of Brussels. It is time to open a real debate on the place of our countries - individually - in the European and global agricultural system. It is now time to give farmers back the means to make a decent living from their work and guarantee food sovereignty.
Sources: Fondation Robert Schuman, Geography, International Journal of Environmental Studies, Le Monde, Persée.
Written by Elsa Hermann
Edited by Roos Hoogesteger & Karla Kohlhaas
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