From conflict to consensus? The state of EU agri-food policy after the Strategic Dialogue’s conclusions 

After months of confidential negotiations, the European Commission President Ursula von der Leyen unveiled the findings of the 'Strategic Dialogue on the Future of EU Agriculture' on 4 September 2024. The strategic dialogue, announced during the September 2023 State of the Union speech and launched in January 2024 amid the months-long farmers' protests, was a way to reach consensus on the polarised agrifood files in the EU. 

The launch of this multi-stakeholder agri-food forum also aimed to address the challenges facing the Farm to Fork Strategy (F2F). This strategy sought to transform the EU's approach to food sustainability with ambitious targets, such as cutting pesticide use and nutrient losses by 50%. However, since its introduction in 2020, it has sparked divisive debates. While some have praised it as a bold reform of Europe’s food system, others viewed it as a threat to agricultural production. 

The Commission's reluctance to openly address the economic impacts of the Farm to Fork (F2F) strategy, combined with limited engagement with key stakeholders such as farmers' associations and a brief public consultation, further blocked consensus. This has particularly affected critical proposals like the Sustainable Use of Pesticides Regulation (SUR) and the new Sustainable Food Systems Framework. Moreover, the internal divisions among the three Directorates-General responsible for implementing the strategy — DG SANTE (health), DG ENV (environment), and DG AGRI (agriculture) —  stalled progress on many initiatives. The Strategic Dialogue sought to remedy these shortcomings by promoting a more inclusive and balanced discussion, and it has made a first step to restore cooperation, trust, and multi-stakeholder engagement, as demonstrated by the unanimous endorsement of the final report. 

After the European Parliament's negative vote on the SUR directive on pesticides in November 2023, what remained of the Farm to Fork strategy was a fragmented set of initiatives: an animal welfare package, a soil monitoring legislation, gene-editing regulation, and revisions to reproductive material legislation. Nonetheless, the final report of the Strategic Dialogue does not reject the original raison d’être of the Farm to Fork strategy – it clearly signals that maintaining the status quo is no longer viable. There seems to be a broad agreement that only "bold and swift action" will ensure that EU food and farming remain "economically profitable, environmentally sustainable, and socially responsible." The report also stresses the urgent need to shift our diets to advance towards sustainable food systems in Europe and unequivocally calls for a structural change in the Common Agricultural Policy (CAP).

The CAP 2023-2027 CAP has faced criticism for failing to drive the necessary large-scale environmental transformation of the sector. Its complex governance system, reliant on National Plans intended to increase flexibility of member states has effectively led to the re-nationalisation of the CAP. In addition, member states have largely ignored the flexibility provided to promote greener practices via eco-schemes. Despite the introduction of such incentive mechanisms, the CAP has continued to support conventional farming methods and is not fit for purpose to meet current and future challenges facing the sector. 

The future of agri-food policies currently lies in the hands of Ursula von der Leyen and her designated Commissioner for Agriculture, Christophe Hansen. The Commission willingness to incorporate the findings and recommendations of the strategic dialogue report in actual legislative proposal will be crucial in revitalising the shift towards an environmentally, economically, and socially viable agricultural policy and to prepare the next CAP reform.  

As the EU prepares for its next legislative mandate, significant challenges remain in achieving a truly sustainable food and farming system. The member states now primarily focus on food security, and away from sustainability. Similarly, von der Leyen’s new political guidelines emphasise boosting farmers' competitiveness to ensure long-term food security. However, continuing to pursue the green objectives that defined the last mandate into the next remains essential for achieving the EU’s goals of enhancing strategic autonomy in the agri-food sector while simultaneously addressing climate and environmental challenges.  

In close cooperation with the newly established European Board on Agri-Food (EBAF), as recommended by the Strategic Dialogue Report, the Commission should proceed with the full implementation of the strategy, focusing on measures to shorten supply chains and promote more sustainable food practices. These actions would enhance EU domestic production, reduce reliance on imports, and decrease demand for imported foodstuffs and inputs, thereby mitigating exposure to geopolitical uncertainties. Delaying or halting key environmental legislation could exacerbate long-term food insecurity issues and fail to address climate-related challenges such as droughts, flooding, and temperature fluctuations, which are already impacting agricultural yields and food availability

With the potential enlargement of the EU, particularly with the accession of Ukraine, it is essential to consider the impact on the EU’s agri-food policies. Ukraine’s integration could significantly bolster EU food security, but it poses financial challenges for both EU farmers and member states due to the high volume of direct payments Ukraine would be entitled to receive, given the average size of its farms. This could result in a reduction of payments to existing EU farmers by about a fifth, potentially turning many current net recipients into net contributors. The potential accession of Ukraine underscores the limitations of the CAP's current area-based direct payment system, also highlighted by the Strategic Dialogue Report. While a ten-year transition period for direct payments or a mandatory cap on payments to large farms may offer short-term solutions, it fails to address the underlying inefficacy and inequity of the current system.  

A broader CAP reform is necessary, similar to the reforms made during the 2004 enlargement. This time, the reform should phase out area-based direct payments and introduce new financial instruments focused on supporting environment and climate measures whilst ensuring farmer’s economic viability. The reformed CAP should include payments for managing land to deliver public goods and implement incentive schemes to promote environmentally friendly and innovative practices. Addressing these issues will ensure that the CAP supports both environmental and financial goals in light of the EU’s potential enlargement. 

Despite this latest reform, the current CAP is still not delivering the necessary sustainability goals, while farmers continue to call for fewer rules and exemptions from environmental requirements. The latest simplification measures taken by the Commission - loosening six out of nine CAP environmental rules on which farming subsidies depend – showcase how the challenge to meet the need for a less complex, yet more sustainable and environmentally ambitious EU agricultural policy is far from being solved. 

The next European Commission should focus on a holistic approach that fosters an economically and socially viable sustainable agricultural system, in line with the legacy of Jacques Delors. Achieving this will require a structural transformation of the CAP, including repurposing its budget, tools, and governance. Simplifying administration through increased transparency and digitalisation, along with directing funding towards environmental services and investment in advice, training, and technical support, will be crucial.

In sum, reducing the administrative burden of the CAP should not result in lowering environmental provisions, thereby further exacerbating the impacts of climate change already affecting European farmers and ultimately undermining food security in the long-term.  

Despite the recent backlash, the benefits of greening agri-food – for instance to ensure food security and climate resilience in the long-term – far outweigh the potential short-term economic drawbacks for the sector. The post-2027 CAP presents an opportunity to align agricultural practices with sustainability and food security goals while addressing concerns related to future EU enlargements.  

Public consultations and debates on the next CAP proposal are expected in early 2025, with CAP negotiations to be integrated into broader discussions on the post-2027 Multiannual Financial Framework (MFF), as was done for the 2023 CAP. These discussions will be challenging due to competition from new priorities like European competitiveness, industrial policy, and defense. However, securing a place for greening agriculture within the new budgetary framework will be essential to ensure fair farmer remuneration, consumer prices, production quality, as well as mitigation and adaptation to climate change. 

This blog post is based on the Europe Jacques Delors paper “Towards a sustainable agri-food system in Europe. Lessons from the last EU mandate and strategies for the future”, which takes stock of the 2019-2024 agrifood policies in the EU and present recommendations for the upcoming EU cycle.