Catalan farmers neglected in allocation of EU subsidies by Spain

BarcelonaThe European Union reviewed its Common Agricultural Policy (CAP) during a time of budget cuts, which resulted in an overall drop in the amount of subsidies. Besides, the changes sought to make the market more transparent and competitive whilst meeting the requirements of the World Trade Organisation. But once Brussels had dished out the subsidies, every member state still had some leeway to allocate the funds. The Spanish government issued four decrees on the matter. Catalonia’s Consell de Treball Econòmic i Social (Social and Economic Work Council or CTESC) —a body that brings together trade unions and business groups— has now conducted a study analysing the impact of the new CAP on Catalonia. Their findings are not encouraging.

The report establishes three clear consequences: Catalonia stands to lose up to €20m in yearly subsidies compared to 2013, the last year of the old CAP. Besides, the loss of subsidies is comparatively greater in Catalonia than in Spain as a whole. Within the Catalan primary sector, subsidies are not evenly spread, with some counties faring better and others getting the short end of the stick, depending on the kind of crops grown.

Financial impact

From €260m in 2013 down to less than €245m in 2019

It is hard to estimate the direct financial impact for the 2015-19 period, given that the first batch of subsidies has only just been paid out. The very complexity of the CAP, with various types of subsidy, as well as direct and indirect aid, makes it difficult to anticipate any figures. Still, by the CTESC’s own calculations, total subsidies received by Catalan farmers may hover somewhere between €244m and just over €245m per annum between 2015 and 2019.

According to CTESC expert Pere Castell, one of the report’s authors, they predict a yearly loss of €15-20m. Castell claims that “it is an estimate, but the drop can already be felt this year, as subsidies are being paid out”.

Discrimination

Farm land gets the lion’s share in Spain, but livestock is predominant in Catalonia

The CTESC has worked out that subsidies earmarked for Catalan farming amount to 9.2-9.4 per cent of the total estimated direct aid, whereas the regional Spanish average is in the region of 11.95 to 12.08 per cent, which means a reduction of €6.6-7m for Catalonia, the Spanish region that stands to lose the most. Joan Caball, leader of Unió de Pagesos —a Catalan farmers’ union— claims this is because farming land is the priority in Spain, whereas livestock farming is much more important in Catalonia, as it accounts for over 60 per cent of the Catalan agricultural output, according to the CTESC.

Regional differences

The north wins over the south due to its kind of production

This system also establishes differences within Catalonia’s farming sector. Generally speaking, the north —where livestock farming is more prominent— benefits more than the south (with the exception of rice fields), as can be seen in the map. In Catalonia’s northern counties, with plenty of pasture lands and intensive livestock farming, subsidies will often exceed the actual amount collected in 2013. In contrast, the south and the Empordà will fall short, sometimes even below 90 per cent of the amount received in 2013.

Worst hit crops

Vineyards and olive oil are the losers, cereal wins

Key foodstuffs in the Mediterranean diet with a strong presence in the Tarragona area and in Lleida, such as oil and grapes, stand to lose. Crops that receive higher-than-average subsidies are rice, citrus fruits, herbs and fodder. In contrast, fruit trees, vegetables, grapes and nuts will receive below average subsidies per hectare.

Recommendations

Preparing the halfway review of 2017

The CTESC would like their report to become a working paper to negotiate the 2017 halfway review. That is why they offer 41 specific recommendations to make the share of aid more equitable in Spain. Chiefly among them is the need to include the land belonging to the newly defined active farmers in the allocation of basic payment rights (this would benefit vineyards, fruit trees and vegetables), as well as bringing in a new type of aid for olive tree farms.