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CAP HEALTHCHECK: Position of Agriculture and Rural Development Committee of the European Parliament

Briefing Note 1
October 13, 2008

Main Points

Outline of Agreement

Modulation: The compromise they reached asks that the current 5 per cent rate of modulation for farmers receiving more that €5 000 in EU subsidy should only be increased to 7 per cent by 2013, rather than the 13 per cent proposed by the Commission.

A higher rate should be applied to farm businesses which receive over €100 000 but not as great as that suggested by the Commission:

Milk: a review in 2010

A compromise view was rejected but a series of individual amendments was adopted by the Committee.

Hard-hit sectors, insurance and market intervention

Members States should be allowed to use up to 15% of their community funding envelope to support hard-hit sectors such as:

This should also be allowed to be used to contribute to insurance and mutual schemes (so-called Article 68 support)

MEPS also voted to accept a series of amendments calling for the retention of market intervention or management instruments in the grain, meat and dairy sectors.

This information is extracted from Press Release CAP Healthcheck: consensus reached in the Agriculture Committee