Position of the International Conference on "Opportunities and threats for market-oriented holdings in the light of the modified Common Agricultural Policy"

In the recent years agriculture is more and more perceived as a "decadent" area, or at least as an area rapidly loosing its former important role for the national economy and its vital importance for the rural development. Not denying the need of a sustainable (multifunctional) development of rural areas, considering the real situation of these areas it must be gathered that the most important area of rural economy in the coming decades will still be agriculture, and the most important economic entity - an agricultural holding. Without the development of agriculture, without restructuring and modernisation of agricultural holdings, the development of agricultural areas will remain weak. Without agriculture, the rural areas will loose their economic, natural and cultural character.

Agriculture gradually becomes multifunctional, and thus will increasingly play extra-productive roles, mainly aimed at sustaining the natural environment in a proper state and sustaining the cultural heritage of the countryside. The implementation of these functions must be closely intertwined with the efficiency of the implementation of the main - productive - function of agriculture.

Extra-productive functions may not and will not be implemented at a satisfactory level when the profitability of agricultural holdings is low.

Productive functions of agriculture may not and should not be limited. It is necessary to ensure an appropriate level of own food production in Europe . Food is both a strategic product and a specific product - it may not be compared with goods produced by the industry. Agricultural production comprises not only food production, but also renewable energy production having economic, productive and ecological impact.

In agriculture all processes are slow. Agricultural holdings, especially the big ones, must make long-term plans. Rapid changes in agricultural policy are dangerous. We appeal for the stabilization of the agricultural policy. We oppose the introduction of further changes, which will not be beneficial for agriculture.

Large agricultural holdings in all countries cover the major part of agricultural production. They can easily ensure the sufficient amount of food and the high quality thereof. These holdings participate more and more in the development of the organic agricultural production. But these holdings may not be discriminated either against small holdings and competitive ones from outside the European Union. Imported agricultural products must meet the same quality standards and the same production conditions requirements. These holdings may successfully implement the model of multi-functional agriculture, and become involved in the implementation of a multidirectional rural development. Large agricultural holdings are predisposed to develop services and regional agri-food processing. It may not, though, be done if these holdings remain discriminated.

Subsidy schemes providing substantial reduction of and establishing ceilings for direct payments to holdings may lead to problems in food supply and may eliminate large agricultural holdings from active participation in the implementation of the multifunctional development of agriculture and of rural areas.

We are opting for production subsidies without maximum and fixed ceilings, if they are to fulfil an economic and production function. Nevertheless, if a 'social support scheme' is to be introduced into agriculture, we are opting for an increase of direct payments for agricultural holdings depending on the number of employed persons (families) for whom working in agriculture is the only source of income regardless of their status (holders or agricultural workers).

In democratic countries, a person and his family constitute the most important social and economic entities. It is necessary to ensure equal treatment of all people for whom agriculture constitutes the only source of income (in many cases for the whole family), regardless of their status as holder or an agricultural worker. It is necessary to provide support to subsistence holdings, in particular those employing agricultural workers.

One of the main tasks of GEOPA for the nearest future is to monitor the economic and productive situation of subsistence holdings and to involve them in multilateral rural development. For this purpose, it is justifiable to establish an economic and productive committee for subsistence farming.

Participants of the International Conference

Warsaw , 19 September 2005