Preliminary Activity Report of Mr Janusz Wojciechowski, European Commissioner for Agriculture, 2019-2024

Mr Janusz Wojciechowski: Preliminary Report, 2019-24

I. Introduction

As I approach the end of my 5th summer mandate as European Union Commissioner for Agriculture, I would like to present the following interim report, containing a selection of the most important activities and accomplishments during my time in office (reserving that I intend to present a full version of the report immediately before the end of the mission).

My mandate, which started on 1 December 2019, came at a very difficult time: for the European Union as a whole and for European farmers in particular.

First of all, in the early months of 2020, we were struck by the COVD-19 pandemic, which caused huge disruptions to the functioning of the whole food sector.

In 2021, European agriculture was hit by another crisis, linked to the sharp rise in energy and fertiliser costs, as a result of Russia's conscious actions preparing for the aggression against Ukraine. Fertiliser prices, especially nitrogen-based fertilisers, increased by 2-3 times.

In February 2022, Russia's illegal aggression against Ukraine started, with huge consequences for the agricultural sector. Russia, not for the first time, used food as a weapon, destabilising global markets, especially for wheat.

During these years, climate disasters also increased. Farmers in many EU countries have been affected by dramatic floods, droughts, forest fires, sudden frosts and damages costing many billions of euros.

Finally, European farmers have been and are still struggling with the consequences of outbreaks of animal diseases, such as avian influenza and African swine fever.

Despite these tremendous challenges, European farmers have overcome their difficulties and ensured food security for all. I believe that the actions outlined below played an important role in supporting our farmers in fulfilling this task – at a time when such support was needed the most.

II. Key achievements during the 2019-2024 term of office

1. The increase in EU agricultural funds for 2021-2027

In May 2020, at my initiative, the Commission proposed to increase the CAP budget by EUR 26 billion (from EUR 365 billion initially planned to EUR 391 billion), and finally the July 2020 European Council adopted an increase of EUR 22 billion (from EUR 365 billion to EUR 387 billion).

This increase in EU agricultural funds for 2021-2027 compared to the original proposal in 2018 was a major achievement, of tangible financial benefit to EU farmers.

2. Rapid and effective crisis response during the pandemic

At the beginning of the pandemic, many Member States unilaterally closed their borders for the protection of public health, despite the Commission's recommendation to adopt a coordinated approach to any restrictions on the free movement of persons and goods. Product transportation, particularly across borders, was challenging for the same reasons. Many food processing plants closed due to emergency measures or staff shortages. The hospitality industry was closed and there were shortages of staff and supply problems in supermarkets.

At that time, the Comission took many decisions and interventions to support farmers and the food sector to effectively overcome this crisis, for example, by opening green corridors for agricultural commodities, facilitation of border crossing of agricultural workers, market interventions, and by allowing the flexible transfer of agricultural funds to crisis-related purposes.

The European Court of Auditors, in its report 09/2023, has characterised and assessed these actions positively:

“... The EU has put in place the following support measures in particular;

• publication of Commission guidelines to ensure an effective food supply chain in the EU, where seasonal workers have been identified as ‘critical' workers to support the food sector;
• direct support to farmers and SMEs in the form of lump sums (Rural Development Measure 21), loans and guarantees, higher advances and increased State aid under the Temporary Framework for farmers and food processing companies;
• exceptional market measures in the form of aid for private storage, support for distillation of wine in a crisis situation and flexibility in the implementation of market support programmes;
• CAP flexibility measures consisting of extending the deadline for submitting CAP payment claims and temporarily replacing on-the-spot checks on farms with alternative sources of evidence, such as satellite images or geotagged photos, to limit physical contact between farmers and inspectors....”

“...The Court's auditors concluded that the Commission has generally taken appropriate action to address the threat to supply chains in the agricultural sector caused by the COVID-19 pandemic. We found that the Commission took action quickly and that its measures helped to limit disruptions in the supply of agricultural products...”

3. The swift and decisive response to support EU farmers impacted by Russia's war in Ukraine

Already in the first weeks of the war, the Commission took action. For example:

• The Emergency Aid Reserve was mobilised for an amount of EUR 500 million to support farmers, including further support of EUR 1.4 billion, including one-off lump sums of EUR 15.000-100,000,
• market protection measures to support the pigmeat market in view of the particularly difficult situation in this sector,
• the Temporary Crisis Framework to support the economy allows Member States to establish grant schemes up to EUR 250000 for enterprises active in the agricultural sector,
• an exceptional temporary derogation allowing crops on set-aside land in the EU while maintaining the full greening payment for farmers.

Of particular importance was the rapid authorisation of public emergency aid and the extension of this aid to farmers. Thanks to the integration of agriculture into the aid scheme, over the next 2 years, 22 countries provided a total of over EUR 10 billion in public aid to farmers, helping the most vulnerable sectors and sectors to withstand the crisis.

4. Effective measures against the crisis against excessive agricultural imports from Ukraine

The reduction of excessive agricultural imports from Ukraine and the temporary ban (from 2 May to 15 September 2023) on imports of wheat, maize, rapeseed and sunflower from Ukraine to 5 border countries – was an important personal achievement. This ban (covering final imports and not limiting transit), introduced despite the initial opposition of as many as 20 EU countries, has played an effective role in reducing excessive grain imports from Ukraine. This was the first such regional ban in the history of the EU's common market.

5. The successful political compromise on the reform of the CAP

Following intensive negotiations, the reform of 2021 was backed by 26 countries (only Bulgaria abstained), and was also supported by a large majority of the European Parliament.

From my point of view, the key elements of the CAP reform agreed in June 2021 are:

• greater flexibility of the CAP through the introduction of national strategic plans, which made it possible to better adapt the CAP to national circumstances,
• increased support for small and medium-sized farms, by a 10 % redistributive payment,
• the creation of a system of voluntary eco-schemes and financial incentives for agricultural practices beneficial for the environment and the climate,
• the integration of animal welfare into the eco-schemes and a 4-fold increase in animal welfare expenditure in the CAP, from around EUR 1.5 billion to over EUR 6 billion,
• a simplified control system for farmers and the transfer of the overall control to the national level.

I would like to mention that the 2021 CAP reform, unlike in some other EU policies, reinforces the role of Member States by transferring to them the drafting of CAP Strategic Plans at national level and by fully transferring direct control of farmers to the national level.

6. Simplification of the Common Agricultural Policy, taking into account farmers' concerns

A policy, especially at EU level, is often the result of complex compromises and negotiations. When we saw that farmers were facing difficulties after one year of implementation of the new CAP, in the context of unprecedented external pressures, it was important for us to change the policy to make it more pragmatic and fit to farming realities. I listened closely to the concerns expressed by farmers and EU countries and worked hard to deliver swift and concrete actions to respond to the issues raised. Some of the key elements of this simplification included:

• fallowing 4 % of agricultural land – first relaxed, from the proposed 10% to 4%, then for 3 consecutive years deferred and eventually abolished as a mandatory requirement and converted into a voluntary and payable eco-scheme for farmers,
• the crop rotation obligation – deferred and recently replaced by crop diversification,
• winter flexibilities – instead of rigid deadlines in the definition of the deadline by Member States,
• Farms of up to 10 ha, i.e. about two thirds of farms in the EU have been exempted from checks on conditionality and any penalty for non-compliance with CAP conditions,
• Holdings of more than 10 ha less controls by 50 % and extension of the possibility to waive sanctions due to force majeure or exceptional circumstances,
• Exempting farmers from penalties for non-compliance with CAP conditions with retroactive effect from 1 January 2024.

7. Intensive and effective promotion of EU agricultural and food products

During my mandate, I carried out 6 promotional business missions to Vietnam, Singapore, Japan, India, China and Kazakhstan, each with dozens of farmers and agri-business representatives. The missions received a high level of interest and recognition of EU entrepreneurs, as the political and business meetings undertaken during the missions contributed to greater market openings and facilitated direct trade contacts.

In a wider sense, the successful promotion of European food contributed to the EU reaching a record high export surplus in food trade in 2023, with over EUR 70 billion (exports EUR 228 billion, imports 158 billion euros).

It is worth stressing that the European Union is a major producer and the world's largest exporter of food. The value added of agricultural production in the EU-27 in 2022 was EUR 222 billion, 44 % higher than in 2015.

The production potential of European agriculture and the food system as a whole makes it possible to ensure food self-sufficiency for 460 million EU citizens and to export to third countries food produced with the highest quality, health and environmental standards in the world. EU exports of agricultural and food products to third countries in 2022 amounted to EUR 229 billion, EUR 58 billion higher than their imports into the EU market. In 2023, the EU's export surplus of agricultural and food products with third countries increased to a record level of over EUR 70 billion.

The EU remains self-sufficient in key agricultural products such as cereals, meat, milk, vegetables and fruits. However, given the significant excess of EU production over EU consumption for major agricultural products – such as cereals, meat, milk or wine – and taking into account the highest quality of Union agricultural products, promotion activities for agricultural and food products should be increased or at least maintained.

III. Conclusion

Although my mandate was dominated by crises, I believe it was defined by responses. Many of the most important responses are set out above. But this list is not exhaustive. And furthermore, the mandate was not only reactive, but proactive. In addition to the actions recalled above, it is worth adding a number of other notable achievements, such as:

• drawing up and adopting a strategic document: “A long-term vision for rural development by 2040”,
• developing and adopting a strategic document “Action Plan for the Development of Organic Farming”,
• adopting of legislative amendments facilitating the registration of products with geographical indications and strengthening the protection of geographical indications in agreements with third countries,
• creating an EU Observatory on Costs and Margins in the agricultural sector, with a view to increasing the transparency of agricultural markets and strengthening the position of farmers in the supply chain,
• effectively supporting farmers with the agricultural reserve, in the light of the market crises caused by the pandemic, the war in Ukraine and the climate catastrophes,
• achieving significant improvements in the regularity of CAP expenditure, according to the European Court of Auditors, the level of errors in this expenditure has decreased to a level below the materiality threshold of 2 %.

I am proud of these achievements, but I am also grateful for the cooperation I received during my time in office, without which these achievements would not have been possible.

I warmly thank my services in the European Commission, as well as the political partners: the Members of the European Parliament and the members of the Council, the Ministers of Agriculture of the Member States, the successive Presidencies – Finnish, Croatian, German, Portuguese, Slovenian, French, Czech, Swedish, Spanish, Belgian and Hungarian – for their intensive, constructive and fruitful cooperation over 5 years. I would like to further acknowledge the European Committee of the Regions and the European Economic and Social Committee for their input and involvement.

I also thank the media, especially journalists and publicists specialising in agricultural affairs, for their close interest and for keeping the public informed about the Commission's work on agriculture.

I am grateful to all social partners, including in particular the European agricultural organisations, as well as all those who shared opinions – sometimes critical, but always inspiring – with the Commission during my mandate.

Finally, and most importantly, I would like to thank the farmers of the European Union.

During my mandate, I was lucky to meet with farmers from all Member States and backgrounds – indeed, I made it a priority to visit farmers during my missions to EU countries. These engagements were always important and enlightening, even when – in fact, especially when – points of criticism or disagreement were raised.

Indeed, I am grateful for the protests of farmers, especially those in 2023-24, which had a significant impact on many changes in agricultural policy, in particular for the simplification of the agricultural policy carried out in 2024.

Most of all, in these difficult times, I am grateful that there was no shortage of food anywhere in Europe. For this, farmers and all workers in the food sector deserve great thanks, which I have expressed to them many times, and I now express once again.

In the challenges of the past five years, we have been given opportunities to learn. And given the challenges that may come in the years ahead, we cannot afford to let these opportunities slip. As a society, we must re-appraise how we value our food, the land from which it is produced, and those who work to produce it.

Farmers, with the support of the CAP, have demonstrated their value time and time again by feeding Europe throughout the last 60 years. This value was reinforced once again during the challenges and crises of the past five years.

It was this value that Professor Walter Hallstein referred to over 60 years ago, when he justified the establishment of the Common Agricultural Policy:

“we know what the agricultural community means to Europe, not only from an economic point of view, but morally, socially and in human terms… as modern society develops it is essential that the farmer and his family, with their independence and their human values, should be enabled to survive.”

It was in this spirit that the CAP was established as a fundamental pillar of the European Union; and it is in this spirit that the CAP, and our Union, must continue.