Further talks on the future of Common Agriculture Policy (CAP) got underway shortly before 2:00p.m this afternoon to try and arrive at a deal for the 2023-2027 policy.

This ‘trilogue’ is between negotiators from the Council of the EU (council of agriculture ministers), the European Parliament and the European Commission.

There remains a number of major disagreements between the council and the parliament on several issues. The commission is ostensibly acting as a mediator or broker between the two other institutions, though is thought to be sympathetic to the parliament’s stance.

At present, the key points of disagreement are: convergence; front-loaded redistribution payments; and funding for eco-schemes.

What each side wants has been covered extensively, and you can find out more about all that here.

The final outcome on these issues will depend on who decides to compromise and on what.

So far, the council of ministers has been somewhat more flexible in its negotiating stance than the parliament, increasing it’s proposed level of convergence from 75% to 85% (i.e. the percentage of a national average payment that lower payments will be increased to); as well as increasing its position on ringfencing Pillar I to fund eco-schemes from 20% to 25%.

Meanwhile, the parliament is more steadfast in its stance – calling for 100% convergence and 30% ringfencing for eco-schemes. However, sources indicate that it may compromise marginally on these in the interest of getting a deal across the line.

It is understood that the parliament team may consider climbing down to about 90% convergence, or perhaps slightly lower, if other aspects of the talks go its way, such as a higher level of eco-scheme funding.

On the eco-schemes, one of the key questions is that of a ‘learning period’, whereby the amount of Pillar I to be ringfenced starts at a lower level, to minimise funds being lost in case of low uptake of schemes.

Minister for Agriculture, Food and the Marine Charlie McConalogue is pursuing a learning period for eco-schemes, but such an arrangement has received a fairly cool response from not only the parliament but also the commission as well, it is understood.

The parliament or commission may insist that any reduction in ringfencing for eco-schemes during a learning period would have to be ‘balanced-out’ with an increase in ringfencing later on, in order to achieve an agreed annual average rate of ringfencing throughout the lifetime of the next CAP.

The pressure to get a deal done now is two-fold: from the Portuguese presidency of the council, which is due to end in just seven days time and is looking for something to show for its six-month tenure; and from the fact that member states are expected to finalise their CAP ‘Strategic Plans’ before the end of this year.

A delay in a CAP deal would not only put administrative pressure on the member states to get their Strategic Plans done, but would also bring a new council presidency onto the scene.

Slovenia will take over the presidency on July 1, for the remainder of the year, and it’s unclear what its policy preferences might be if it was required to hammer out a CAP deal in the absence of agreement this week.

The current talks will continue tomorrow and possibly into Saturday.