Profitable prices, rising costs, generational change, digital transformation, and climate change are among the major challenges the sector will face.
27 Nov 2023
| The new government must take a stance on a crucial question: “Should production, land, and water be in the hands of speculative investment funds or in the hands of small and medium-sized professional farmers and livestock breeders who generate life in our villages, sustainably structure rural areas, and guarantee food security?” |
Profitable prices, rising costs, generational change, digital transformation, and climate change are among the major challenges the sector will face.
The Coordinator of Farmers and Ranchers Organizations (COAG) has compiled a document outlining the essential measures for the upcoming legislative term of 2023-2027. This document has been formally presented to Luis Planas, the Minister of Agriculture, Fisheries, and Food.
Miguel Padilla, General Secretary of COAG, expressed that establishing a socially necessary model of agriculture and livestock farming is designed to safeguard those individuals responsible for sustaining the most susceptible farms. This protection is deemed crucial for ensuring our food security and sovereignty, particularly within the context of climate and energy crises. Padilla highlighted the necessity of shielding them from agricultural and livestock practices resembling Uber-like models, integrated into extensive global trade networks, funded by substantial capital and/or investment funds that control limited natural resources. In many instances, despite displacing individuals, these practices disguise themselves as family or sustainable agriculture.
Current agricultural production is being radically altered by external and internal factors that could lead to the disappearance of the social and professional model of agriculture. The downward pressure on agricultural prices, market deregulation, shock imports, and rising production costs place us at a disadvantage and weakness against large speculative investments that thrive in an unregulated market ideal for speculation.
Padilla emphasized, “This exacerbates the challenges of generational turnover, sector abandonment, and the depopulation of rural areas.” He further urged that the new government must address a pivotal question: “Should control over production, land, and water rest with speculative investment funds, or with small and medium-sized professional farmers and livestock breeders who contribute to the vitality of our villages and foster sustainable development in rural areas?”
This legislature and the Family Farming Law must lay the foundations and measures to curb conversion and promote a significant influx of young people into agriculture. It is essential to limit the entry of these investment funds and speculation with production, land, and water.
In the coming years, the social and professional model of agriculture will face new challenges and additional demands. Agriculture must first guarantee the right to healthy food for all people, higher costs, and more volatile markets, i.e., food security; secondly, it must do so sustainably, preserving the environment, biodiversity, water, soil, air, and contributing to climate change mitigation (while adapting to its adverse effects on production); thirdly, it must be more efficient in the use of resources, for which it will need to resort to innovation and especially, in the case of energy, to renewable sources; and fourthly, it must adopt the law of the chain, denouncing its non-compliance, extending it to all productions, ensuring that prices cover production costs and the breadth of the law’s rules.
Faced with these ambitious challenges, a cut in agricultural funds from the Common Agricultural Policy (CAP) that represents a 12% loss of purchasing power approved in the last EU financial framework is regrettable, in a scenario of new requirements within the Green Deal, which will entail higher costs for farmers and ranchers.
COAG demands and advocates:
1. Fair prices and dignified incomes for men and women in the countryside. Otherwise, there is no sustainability. To achieve this, the entire chain law must be applied in its entirety, addressing the rebalancing of the value chain and competition with third countries, not just the fair distribution of aid. Similarly, it will be essential to have market management and regulation mechanisms that address crisis situations, well-endowed and funded separately from direct aid. Likewise, the principle of community preference should be restored against uncontrolled imports that do not comply with community standards.
We must demand that all products entering from third countries be equivalent to EU production standards, both in terms of animal welfare regulations, phytosanitary regulations, environmental regulations (livestock nitrogen), and labor obligations, etc.
A) If they employ production systems forbidden in the EU, deny their entry and access to consumers within the EU.
B) If they breach labor, tax, or other regulations concerning our standards (not those of their countries of origin), impose tariff duties on them. The collected amounts would contribute to a state-managed crisis fund for each affected sector.
2. Allow for an adjustment period to accommodate the significant forthcoming changes, with substantial support in terms of both assistance and investment, as well as training and guidance. Farmers and ranchers are set to play a central role in combating climate change and championing a sustainable agri-food model.
3. However, it is imperative that the EU reassesses all free trade agreements with third countries, establishing the principles of community preference and food sovereignty. Additionally, imports should adhere to the standards already met by European producers.
3. Implement various measures addressing rising production costs, which have eroded the sector’s profitability in recent decades. Establishing a cost observatory is crucial in this context, supporting investments to diminish the energy dependence of agricultural operations and promoting the use of renewable energies. Furthermore, progress in the digital transformation of agricultural operations is essential. While digital transformation presents substantial opportunities, it also poses risks and threats to our agriculture and food model, potentially leading to a significant overhaul.
4. Introduce a minimum of 10,000 new farmers annually, providing all necessary resources for this, with a particular focus on facilitating access to land—the primary obstacle to installation.
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