A proposal in the next CAP to impose a levy on farmers who increase production during market crisis points has been backed by MEPs.

MEPs on the European Parliament’s agriculture committee voted through the first of three legislative proposals for the next CAP on Monday (1 April).

The new EU rules for common marker organisation (CMO) in agricultural products were approved by 29 votes in favour to seven against with one abstention.

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Irish MEPs Mairead McGuinness and Luke 'Ming' Flanagan voted in favour of the overall report while Matt Carthy voted against.

They will now go forward to be debated by the full Parliament after the European elections in May.

Reduction schemes

Part of the proposal was to extend supply management and volume reduction schemes to all sectors. The current scheme grants aid to dairy farmers who voluntarily produce less in times of severe market imbalances.

If voluntary reductions do not help to improve the situation, MEPs want to task the European Commission with imposing levies on all producers who increase their deliveries.

Intervention extension

Backing has also been given to a proposal to widen the market safety net by allowing public intervention for new products such as sheep, pig and chicken meat.

Intervention kicks in if prices for these products drop below a certain level, as has happened with dairy products.

Improved market transparency is also a focus of the proposals.

MEPs have suggested setting up a single EU observatory for agricultural markets that would collect statistical data on production, supply, prices, profits, imports and exports, and issue early market disturbance warnings.

Income problems

French MEP Eric Andrieu, who put together the proposals, said: “While farmers are facing significant income problems related to price volatility and the downstream concentration, the Commission proposed only very limited administrative reform, not reacting adequately to these problems.

“My goal is to create effective mechanisms to prevent and better manage agricultural crises, to effectively respond to price volatility, and to make sure farmers can benefit from a fairer and more stable income.”

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