Euronext supports the Commission’s efforts to make the CAP more responsive to current and future challenges via the creation of CAP Strategic Plans, which would grant flexibility to Member States in the allocation of EU funds, with a view to making the farming sector more resilient.
Euronext believes that the CAP legislative framework could benefit from additional incentives and/or measures to promote the use of risk management tools aimed at reducing the negative consequences of price volatility for agricultural market participants.
Euronext therefore welcomes the formation of the European CAP Network to provide peer-to-peer learning and awareness-raising actions for EU farmers in the management of their agricultural risks. The creation of such informative platforms should incentivise individual responsibility and enforce the position of individual farmers in the food value chain.
In addition, Euronext supports the proposal to establish a permanent EU-level platform for risk management. This should provide a forum for farmers, public authorities and stakeholders to exchange experience and best practices.
The Euronext position paper provides more details on the functioning of the futures market and the benefits it brings to the farming community.