Agriculture Reference
In-Depth Information
7.3.1 Summary
agricultural industry, but could provide hemp
with an unprecedented opportunity.
In effect, the SPS may herald a shift in pay-
ments from the central pillar of the CAP system
(crop subsidies) towards a new priority, that of
sustainable rural development. The growing
importance of environmental considerations
and land stewardship may shift community sub-
sidies towards industrial crops such as hemp,
which are more environmentally friendly.
Carbon storage/capture in building
Conditions for exploitation:
Example 1
Cultivation by a contracted farmer working
with an approved processor:
SPS triggered if the farmer applies.
•
•
Incentive available for the processor for
processed hemp at €90/t.
Crop may be subjected to random testing
•
•
materials.
Cultivation without the need for herbicides.
for THC.
•
•
Longer crop rotation plans, leading to
breaks in parasite cycles.
In this way, hemp production may benefit from
the chaotic situation arising from the adoption
of a liberal policy, assuming European agricul-
ture survives as an industry.
Example 2
Crop processed by an unregistered processor
lacking, produced for own consumption or as
an experimental crop:
SPS triggered if available and applicable.
•
•
Culture must be declared to the
Comité
Économique Agricole de la Production
de Chanvre
(Interior Ministry's Committee
for the Production of Hemp).
7.4.2
A conservative policy
•
Evolution and development of the CAP
without upsetting the system.
7.4 Future of the CAP
and Hemp Subsidies
This option is advocated by countries such as
France, with a strong agricultural base, that
historically have been the main beneficiaries of
the CAP.
The need to secure and protect the
European agricultural industry, thus realizing
its potential in the face of opposition from
those concerned more about free trade, is a
key argument in favour of this option. In this
case, there is likely to be a reinforcement of
'direct aid', while calling a halt on the stand-
ardization of subsidies. At the same time, a
movement towards rewarding environmental
added-value will be encouraged by modulating
subsidies such that environmentally friendly
products are preferentially weighted. In this
case, hemp, with its intrinsic qualities, is again
likely to benefit. This second option appears to
be the most viable. There remains, however,
the enormous question of the CAP budget.
At the time of publication, the future of the
CAP after 2013 will probably be mapped out.
Two possibilities are envisaged:
7.4.1
A liberal policy
•
Creation of a single payment for each
hectare within the EU, with a progressive
reduction in this payment until it
disappears.
Currently, this option is advocated by those
who seek to shrink the agricultural budget.
It threatens to produce significant changes to
the agricultural landscape, may aggravate
the volatility of market prices and weaken the
