Croatian Agriculture and the European Union – What About the New Common Agricultural Policy?

The coronavirus crisis is an inevitable introduction to any plan, program, and article that has been released to the public in recent days. Simply put, the epidemic has affected all spheres of life, and we have already spent numerous pages discussing the impact of various measures, incentives, and restrictions on the economy, so we can immediately focus on a specific topic – the common agricultural policy.

Last week, the European Commission proposed a new EU budget where the CAP is allocated 55.2 billion euros out of 166.7 billion euros for 2021, along with 813 million euros for the European Maritime and Fisheries Fund. As this is the first annual budget in the new multiannual financial framework package, the European Parliament and the Council still need to adopt the MFF, as well as the temporary recovery instrument Next Generation EU. However, the first challenges for the new CAP are already emerging. To predict the outcomes of these new policies and budgets, we asked Zvonimir Belić from the company Rajska rajčice, the largest producer of specialty tomato varieties located in Kerestinec.

– This year, everyone has realized the importance of agricultural production and that domestic products are available at all times. When markets were closing, virtual ones were being established; when they reopened, people stood in lines of several hundred meters for fresh fruits and vegetables, even though the supply in shopping centers and stores remained solid. Without delving into the specific reasons for these phenomena, we can all agree that the Croatian public has understood the value of agriculture in recent months. Now we may pay more attention to this sector, but the question is who will have the will and time to focus on the CAP in such a way that farmers and others receive funds as soon as possible. Sometimes EU institutions are a bit slow, and ours are overloaded, so we might also expect some changes after the parliamentary elections, and then after the local ones… All these, conditionally speaking, instabilities can affect the path ‘from treasury to field’ that precedes ‘from field to table’ – emphasized Belić.

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Zvonimir Belić

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Regarding the sluggishness of the system, Belić continues, the fact that the withdrawal of the Environmental Committee from the CAP was not perceived as too dramatic speaks volumes, even though one of the main goals of the CAP reform itself is environmental protection and the reduction of harmful effects of climate change.

– Here, political groups have spoken about how it cannot take years to decide on the CAP again, but in reality, efforts should be made to ensure that structures are more flexible, that discussions are more dynamic, and that decision-making is simpler and faster. Precisely because of a world that is changing so rapidly and unpredictable weather disasters, which need to be responded to immediately, not in a few months after passing through a series of instances. It is clear that common money should be managed responsibly and purposefully, but it would also be good if it were timely. In the new proposed way of working of the CAP, a rationalization of administrative procedures, facilitation of environmental protection, and simpler support for young farmers have been promised – adds Belić.

– The CAP includes income support through direct payments, market measures to address difficult situations, such as those we have now had the opportunity to experience due to sudden changes in demand because of the health situation, and rural development measures – continues Belić.

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Production and packaging

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– Our company has doubled production with EU funds, so if we want the same scenario for a large number of domestic companies, i.e., family farms, it is in Croatia’s interest to actively participate in the reform as much as possible – says Belić.

Belić adds that, although Rajska is highly technologically developed and digitized, many farmers in Croatia still do not have even the basic conditions for efficient cultivation, production, and sales. The CAP could be the right opportunity to invest in some fundamental prerequisites for successful agriculture by 2027, such as irrigation and drainage systems or cold storage systems or those for hail protection.

– Our farmer will know how to utilize every euro received through the CAP, as such funds make the difference between the collapse and revival of rural areas. It also gives hope that the EU has recognized the importance of financing, for example, smaller farms, which is why young people remain in their hometowns. The Fi compass research details our situation and what we can and should do; we can only hope that the relevant institutions and individuals will take into account the real needs as opposed to some established, long-decided, and outdated patterns of action. Agriculture is not a relic of the past, but a very modern branch, if we want it to be so – concludes Zvonimir Belić.

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