A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Agricultural price volatility:
The leitmotif of the Agricultural Show?

March 2nd, 2015

“Protecting farmers from price volatility…” This is one of the key phrases from François Hollande’s address at the opening of the Paris International Agricultural Show. And the French President was not the only one at the Show to touch upon this necessity. The world “volatility” was on everyone’s lips. Who was to predict it only a few years ago, when this structural phenomenon and its harmful consequences were clearly ignored or minimized?

Among the experts, Hervé Guyomard, Scientific Director for Agriculture at the French National Institute for Agricultural Research (INRA), in a live interview from the Show on the RFI radio station, spoke about the need to fight price variability in a world where prices are increasingly fluctuating. Also visiting the Show, European Commissioner for Agriculture Phil Hogan stood out in an in interview published in Le Figaro, and raised the risk of returning to the old CAP with artificially high prices that are disconnected from market realities! He was the only one to refute the evidence and deny the reality of price volatility.

Yet, aside from this discordant statement, a consensus if forming around the defenseless European agricultural activities, not only due to climate or policy factors but also to market factors. As a consequence, which are the concrete measures to be implemented?

François Hollande talks about fostering insurance mechanisms to preserve farming incomes, but from a broader perspective we need a new strategic direction for the Common Agricultural Policy. Phil Hogan casually sweeps aside any CAP modification by stating that it would be a return to the former CAP, but what about the current policy that ignores economic realities at a time when the major agricultural powers are implementing counter-cyclical systems?

In fact, the European agricultural policy no longer has the regulatory tools to intervene in case of market instability. Though the CAP “tool box” does include many mechanisms, not a single one is tailored to confront price volatility.

For its part, the CAP alternate project outlined by momagri does guarantee stable incomes to farmers by improving the budgetary added value, very far from the hasty statements made by Mr. Hogan.

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Paris, 19 June 2019