Cross compliance as instrument for agri-environmental policy

Cross-compliance means to make the reception of public support payments contingent upon compliance with environmental and other requirements. After having introduced first options for cross-compliance in the "Agenda 2000", the EU prescribes more than ever the framework for definition and control of standards with the planned compulsory introduction of cross-compliance, based on the reforms of June 2003. The requirements include compliance with certain directives and regulations concerning environment, animal welfare and public, animal and plant health and with standards for soil conservation, maintenance of land and protection of landscape features and permanent pasture. Compliance with the relevant mandatory standards is reinforced by more systematic controls and reductions of premia, these sanctions not only depending on the severity of a breach but as well on the height of the direct payments. Farms are affected by possible sanctions on the basis of cross-compliance to a different extent. As to be able to target relevant environmental problems, risk-analysis for selection of farms to be controlled is inevitable. Sanctions have to take into account to a great extent the actual environmental impacts, especially if indirect indicators are used for control. Standards that go beyond legislation might compete with requirements for agri-environmental measures, which can be an incentive to define low standards, thus not using the regulatory opportunities of cross-compliance. Further on, cross-compliance still doesn't ensure sufficient protection of permanent pasture. The higher control rates of 5% in connection with the control of "good farming practice" as a condition for support payments can create problems of acceptance of voluntary measures as the affected farms run a higher risk of being sanctioned through cross-compliance, as well. Besides rising control frequency and sanctions, the use of co-operative elements, such as technical assistance and audits, for the implementation of environmental standards should be promoted.