Portugal

• General country description
• A. First pillar: implementation of CAP reforms (2003)
• B. Second pillar: implementation of RDP measures during 2007-2013
• C. Vision for the CAP beyond 2013: a short overview of the debate (at Member State level) on future CAP reform
• D. Literature, sources, references
• The comparative analysis provides a compact overview of CAP implementation across all 27 Member States and their visions of the future of the CAP

General country discription

Portugal
Comparison with EU-25

Population, 2005 (*1,000,000): 10.5

2.3% of population in EU-25

Population density, 2003 (inh./km2): 114

118 in EU-25

GDP/capita, 2005 (PPS): 16,600

71% of GDP/capita in EU-25

Share agriculture in total employment, 2002 (%): 10

5% in EU-25

Share Utilized Agricultural Area in total land area, 2003 (%): 43

46% in EU-25 in 1998

Average farm size, 2005 (ha): 16

19 in EU-15

Number of farms, 2005 (*1000): 219.3

3.4% of farms in EU-25

Source: own calculations based on Eurostat

Distribution of farming types, 2005 (% of total)

Source: own calculations based on Eurostat

EU funding for the Single Payment Scheme (SPS)
and the second pillar, 2007-2013

Funding according to CAP budget including Bulgaria and Romania.
Sources: Agra Europe (2007); CEU (2006); EC (2007a)

 

A. First pillar: implementation CAP reform (2003)

A.1 Single Payment Scheme

Model

SPS historical (EC, 2007b)

Coupling measures

Complete decoupling, except for suckler cow premium (100% coupled), slaughter premium calves (100% coupled), slaughter premium bovine adults (40% coupled), sheep and goat premium 50%, seeds (100% coupled), outermost regions (100% coupled). Article 69 application (1% arable crops, rice, bovine and ovine sectors), dairy premium in 2007.

Reason for selection

A.2 EU budget for Single Payment Scheme (SPS) per year (National ceiling) 2005-2013

Source: 2005: EC (2006); 2006-2013: CEU (2006) and Agra Europe (2007)

Share of the farms that receive SPS of the total number of farms (% of total)

70%

Tradability of SPS

Yes, single payments attached to land (if not, 10% are retained to the national reserve)

A.3 Cross-compliance: Good Agricultural and Environmental Conditions (GAEC)

(Source:IEEP 2005; )

Selected standards of the GAEC

Issue
Standards
Summary of farmers’obligations

Soil erosion

Minimum soil cover

all parcels in autumn and winter. Restrictions depend on plot physiographic qualification index (national legislation)

Soil organic matter

Stubble management

Burning only permitted when authorized and only with technical advice and in periods of low fire risk

Protection of permanent pasture

 

Authorization required for converting pp and only possible if the national reference ratio remains above 95%.

minimum level of maintenance

avoiding the encroachment of unwanted vegetation on agricultural land

max 25% of area occupied by woody plants of > 50 cm high

 

EXTRA: environmental conditions

set-aside and grasslands have at least 3m strips to be mowed 1x year; restricted bush fires; collection of agricultural residues; strong fertilisers and plant health products safely and dry at distances > 10 m from water bodies

Portugal is mainly concerned about the environment and quality of water bodies and imposes national legislation for protection. Although land abandonment is a major problem, no standards or formulated to prevent it.

Reason for selection of cross compliance standards

The ministry did not comment on the development of cross compliance and did not state whether a consultation process took place or not.

A.4 Further reform of market regulations

Wine

Continuing the effort to reconvert vineyards towards competitiveness; selective grubbing to maintain vineyards in traditional wine regions, connected to environmental and landscape benefits; assuring sufficient and competitive supply of alcohol to Port and Madeira wine.

Fruit and vegetables

Already reformed (in tomato, the main concern was to maintain output levels and the existing tomato processing capability through partial decoupling; in general, to increase the level of organization of producers through the continuation of support to POs. Decision made in Agricultural Council meeting in June 2007. Complete decoupling of processing of fruit and vegetables within 4 years for tomatoes and within 5 years for permanent crops (e.g. citrus). Role of producer organisation strengthened, especially in crisis prevention and -management.

Decoupling of other products, like tobacco, hop etc.

Art. 69 application: 10% of the ceiling for the olive oil sector, 10% of the ceiling for sugar, tobacco coefficient for decoupling 0,5, olive oil coefficient for decoupling 1

Simplification into one market regulation

No information

 

B. Second pillar: implementation of RDP measures 2007-2013

B.1 Programme level and approval

There is one national strategy and there are three RDPs: one for Mainland Portugal and two for each Autonomous Region (Madeira and the Azores). The Rural Development Committee (consisting of representatives of the 27 Member States) has approved the RDP for Mainland Portugal on 21 November 2007.

B.2 Distribution of public budget over the axes (%)1)

 

axis 1: competitiveness

axis 2: environment and land management

axis 3: rural economy

Axis 4: Leader

Mainland Portugal

48

41

0.1

11

1) Figures excluding Technical Assistance
Source: Own calculations based on Ministério da Agricultura, do Desenvolvimento Rural e das Pescas (2007)

B.3 Integration of Leader in axes 1, 2 and 3

Leader contributes to Axis 3. In addition, Leader should contribute to the improvement of new approaches to governance and to the mobilization of the endogenous development of local sources and actors.

B.4 Local Action Groups (LAGs)

According to an assessment by the LEADER+ the number of LAGs should be less than 46 to encourage an increase in the critical mass of certain areas. The LAGs should cover 100% of the rural areas (76.828 km2) (Ministério da Agricultura, do Desenvolvimento Rural e das Pescas, 2007). In 2000-2006 there were 52 LAGs in Portugal.

B.5 RDP budget 2007-2013 (million euros)

 

total public budget

% co-financing EAFRD1)

EAFRD budget

Contribution private sector

Total costs

National top-ups

Mainland Portugal

4444.0

78

3468.1

1980.5

6424.4

0

Total Portugal

 

 

3929.3

 

 

 

1) % of co-financing may vary per axis Source: Ministério da Agricultura, do Desenvolvimento Rural e das Pescas (2007)

B.6 Less Favoured Areas

According to CEU (2005), in 2005 Portugal has designed 3,346,000 ha as Less Favoured Area (LFA) (84% of UAA). The entire territory of the Autonomous Regions is classified as LFA.

B.7 Drivers of RDP strategy

Try to implement EU rural development priorities as an addition to the national policy.

 

C. Vision on the CAP beyond 2013*

C.1 Stages in the development of the CAP debate

Is there a debate about the CAP beyond 2013?

Although the debate is not yet actual, it is likely that the Ministry of Agriculture and farmers organizations will be involved in such a debate. It is expected that such a debate will start after the publication of the 'Health Check'. Now the debate is restricted to some individual academic people.

C2 Key issues in the debate

Components and role of the CAP

Organisation of the CAP (first and second pillar)

No information

Financing of the CAP

* Information provided by Carel Heringa, and Jose Lima Santos

D. Literature, sources, references

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