A common agricultural policy for european public goods

The Common Agricultural Policy (CAP) is the agricultural policy of the European Union. It implements a system of agricultural subsidies and other programmes. It was introduced in 1962 and has undergone several changes since then to reduce the cost (from 73% of the EEC budget in 1985 to 37% of the EU budget in 2017 [1] ) and to also consider rural development in its aims.

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What is the EU’s Common Agricultural Policy?

The common agricultural policy supports farmers and ensures Europe’s food security. Launched in 1962, the EU’s common agricultural policy (CAP) is a partnership between agriculture and society, and between Europe and its farmers. It aims to: support farmers and improve agricultural productivity, ensuring a stable supply of affordable food;

Who wrote the Common Agricultural Policy of the European Community?

Fennell, Rosemary, The Common Agricultural Policy of the European Community (London: Harper Collins, 1979; 2nd. ed. Wiley-Blackwell, 1988). Grant, Wyn, The Common Agricultural Policy (London: Palgrave Macmillan, 1997).

What is the EU’s Common Agricultural Policy (CAP)?

European Commission. “Agriculture”. The EU’s common agricultural policy (CAP): for our food, for our countryside, for our environment. Retrieved 10 July 2018. Fennell, Rosemary, The Common Agricultural Policy of the European Community (London: Harper Collins, 1979; 2nd. ed. Wiley-Blackwell, 1988).

What is the legal basis for the Common Agricultural Policy?

The legal basis for the common agricultural policy is established in the Treaty on the functioning of the European Union. The following 4 regulations set out the different elements of the CAP work: rules for direct payments to farmers (EU regulation 1307/2013);


Does the EU have a common agricultural policy?

Agriculture is the only sector of the European Union (EU) where there is a common policy. Agricultural policy is proposed by a supranational authority—the European Commission, agreed to or amended by agricultural ministers of EU member nations, and reviewed by the European Parliament.


Why did the EU establish the common agricultural policy?

The Common Agricultural Policy (CAP) was set out in the Treaty of Rome (1957) and established in 1962. It was intended to enable the European Community to avoid the food-shortages experienced during and after the war.


What is the most common agriculture in Europe?

EU agricultural production is dominated by livestock products (including dairy), grains, vegetables, wine, fruits, and sugar. Major export commodities include grains (wheat and barley), dairy products, poultry, pork, fruit, vegetables, olive oil, and wine.


What is the new common agricultural policy?

The new legislation, which is due to begin in 2023, paves the way for a fairer, greener and more performance-based CAP. It will seek to ensure a sustainable future for European farmers, provide more targeted support to smaller farms, and allow greater flexibility for EU countries to adapt measures to local conditions.


What is the purpose of the common agricultural policy?

The common agricultural policy is born. The CAP is conceived as a common policy, with the objectives of providing affordable food for EU citizens and a fair standard of living for farmers.


What does the European Union’s common agricultural policy do quizlet?

Common Agricultural Policy (CAP) is one of the earliest policies created by the European Union. Aim was to increase the agricultural production and improve the stability of both farming or consuming markets. Price controls set by CAP and other market interventions including tariffs and quotas.


What is the most popular agricultural product in Europe?

Grapes for wine. The EU is big player on the world’s wine market; between 2014 and 2018 it accounted for 65 % of global production, 60 % of consumption and 70 % of exports, with 45 % of the wine-growing areas in the world.


What is the most common form of commercial agriculture in Europe?

Questions from Chapter 10QuestionAnswerWhich of the following is the most common form of commercial agriculture in Europe?E) Mixed crop and livestock farmingAfter corn, the most important crop in the U.S. mixed crop and livestock region is…C) Soybeans26 more rows


How is agriculture in Europe?

Agriculture is an inherent part of food systems and the range of food produced in the EU is diverse. The EU is broadly self-sufficient in most agricultural primary commodities. It is also the single largest exporter of agri-food products, which include processed food (EC, 2016a).


What is the Common Agricultural Policy UK?

The basic objectives of the policy are to increase agricultural productivity, ensure a fair standard of living for farmers, stabilise markets, ensure the availability of supplies and ensure reasonable prices for consumers. The nations of the UK will set their own regimes for agricultural support after Brexit.


When was the common agricultural policy introduced?

1962It was introduced in 1962 and has undergone several changes since then to reduce the cost (from 73% of the EEC budget in 1985 to 37% of the EU budget in 2017) and to also consider rural development in its aims.


What does SEM stand for in the European Union?

The EU SEM (European Union Support to Socio Economic Development) is a Programme aimed to support the sustainable development of Socio Economic Measures in North and East of Sri Lanka.


What is the EU’s role in rural development?

Rural development. The EU promotes vibrant rural areas. Together with market measures and income support, rural development measures are at the heart of the CAP.


What is the European Commission?

Common monitoring and evaluation framework. The European Commission monitors and evaluates the implementation, results and impacts of the common agricultural policy.


How much did the EU’s greening policy reduce the agricultural production?

Experts such as Prof. Alan Matthews believed ‘ greening ‘ measures in the EU’s proposed €418-billion post-2013 farm policy could lower the bloc’s agricultural production potential by raising farm input costs by €5 billion, or around 2 per cent.


When was the European Agricultural Guidance and Guarantee Fund established?

In 1962 the European Agricultural Guidance and Guarantee Fund was founded to provide money for the CAP’s market regimes. A year later the Fund was split into two bodies, the Guarantee side implemented market and price support and the Guidance part supplied structural aid.


What was the MacSharry reform?

In 1992, the MacSharry reforms (named after the European Commissioner for Agriculture, Ray MacSharry) were created to limit rising production, while at the same time adjusting to the trend toward a more free agricultural market. The reforms reduced levels of support by 29% for cereals and 16% for beef.


What was the purpose of the 2003 CAP reform?

Many of them were already either good practice recommendations or separate legal requirements regulating farm activities. The aim was to make more money available for environmental quality or animal welfare programmes. The political scientist Peter Nedergaard analysed the 2003 reform on the basis of rational choice theory and stated that, “In order to arrive at an adequate explanation, an account of the policy entrepreneurship on the part of Commissioner Franz Fischler must be given.”


Why did environmentalists support the CAP?

Environmentalists garnered great support in reforming the CAP, but it was financial matters that ultimately tipped the balance: due to huge overproduction the CAP was becoming expensive and wasteful. There was the introduction of a quota on dairy production in 1984 and, in 1988, a ceiling on EU expenditure to farmers.


What is the EAGGF?

The European Agricultural Guidance and Guarantee Fund (EAGGF) of the EU, which used to fund the CAP has been replaced in 2007 with the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).


What was the name of the report of the Gaichel Group?

This long-term plan, also known as the ‘1980 Agricultural Programme’ or the ‘Report of the Gaichel Group’, named after the village in Luxembourg in which it had been prepared, laid the foundations for a new social and structural policy for European agriculture.


Domestic Price Support

Domestic price supports were the historical backbone of CAP farm support, but have been largely replaced in this decade by direct payments, which now account for around 70 percent of the CAP budget.


Direct Payments

While price support remains a means of maintaining farm income, payments made directly to producers provide substantially more income support. The payments specified in the 2003 reform are made to farmers based on the average level of payments made during 2000-02, and no production is required.


Supply Control

The 1992 reforms instituted a system of supply control—through a mandatory, paid set-aside program to limit production—that was maintained until the reforms of 2008 when set-aside was abolished.


Border Measures

The CAP maintains domestic agricultural prices above world prices for many commodities. In preferential trade agreements, such as those with former colonies and neighboring countries, the EU satisfies domestic consumer demand while protecting high domestic prices through import quotas and minimum import price requirements.


Additional Aspects of 2003 Reform

Important components of the 2003 reform reflect a philosophical change in the approach to EU agricultural policy. For the first time, there was significant pressure to reform the CAP from environmentalists and consumers in addition to external pressures.


Grains

The CAP regime covers most grain produced by and imported into EU countries (bread wheat, barley, and corn). However, high prices for some grains indirectly raise the prices of unsupported grains, principally feed wheat. As with other commodities, grain support mechanisms include a mixture of price supports and supply controls, as described above.


Rice

Rice policy was radically altered by the 2003 reform. The rice intervention price was reduced by 50 percent and annual intervention purchases were limited to 75,000 metric tons. Direct payments were introduced to compensate for 88 percent of the price reduction.


A new way of working

The new CAP is a modernised policy, with a strong emphasis on results and performance.


Key areas of reform

The new CAP contains a number of policy reforms to support the transition towards sustainable agriculture and forestry in the EU.


Knowledge, research and innovation

Advancing research, knowledge-sharing, and innovation will be essential for securing a smart and sustainable agricultural sector.


Legal basis

The reform covers three regulations, which will generally apply from 1 January 2023:


What was the main objective of the European Coal and Steel Community?

The main objective of the European Coal and Steel Community, a new institution set up in 1952, was therefore to work to unite a fragmented Europe.


What is the European added value unit?

The European Parliament’s European Added Value Unit provides European Added Value Assessments and Cost of Non-Europe Reports which analyze policy areas where common action at EU level is absent but could bring greater efficiency and a public good for European citizens.


A Change of Mind-Set and Conditions

Although the proposed CAP claims to better address key societal challenges, our assessment suggests that the CAP post-2020 is unlikely to improve its performance toward environmental, economic, and social sustainability and may even risk expanding harmful subsidies.


References and Notes

EC, “Special Eurobarometer 440: Europeans, Agriculture and the CAP” (European Commission, Brussels, 2016).


The Cap in Practice

  • Farming is unlike most other businesses, as the following special considerations apply: 1. despite the importance of food production, farmers’ income is around 40% lower compared to non-agricultural income; 2. agriculture depends more on the weather and the climate than many othe…

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Cap Financing

  • The level of support for EU farmers from the overall EU budget reflects the many variables involved in ensuring continued access to high quality food, which includes functions such as income support to farmers, climate change action, and maintaining vibrant rural communities. The CAP is financed through two funds as part of the EU budget: 1. the European agricultural gu…

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The Benefits of The Cap

  • The CAP defines the conditions that will allow farmers to fulfil their functions in society in the following ways:

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Key Contributors to The Cap

  • The European Commission regularly consults civil dialogue groups and agricultural committees to best shape law and policies governing agriculture. Expert groups provide input to the European Commission, such as the agricultural market task forceon unfair trading practices. The Commission carries out impact assessments when planning, preparing and proposing new Euro…

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Evaluation of The Cap

  • The Commission assesses the CAP through the common monitoring and evaluation framework(CMEF). The aim of the CMEF is to demonstrate the achievements of the CAP during the 2014-20 period and improve its efficiency through CAP indicators.

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The New Cap

  • To consolidate the role of European agriculture for the future, the CAP has evolved over the years to meet changing economic circumstances and citizens’ requirements and needs. In June 2018, the European Commission presented legislative proposals for a new CAP. The proposals outlined a simpler and more efficient policy that will incorporate the sustainable ambitions of the Europe…

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Legal Foundations

  • The legal basis for the common agricultural policy is established in the Treaty on the Functioning of the European Union. The following four regulations set out the different elements of the CAP work: 1. EU Regulation 1307/2013on rules for direct payments to farmers; 2. EU Regulation 1308/2013on a common organisation of the markets in agricultural products; 3. EU Regulation 1…

See more on ec.europa.eu


Summary

The Common Agricultural Policy (CAP) is the agricultural policy of the European Union. It implements a system of agricultural subsidies and other programmes. It was introduced in 1962 and has undergone several changes since then to reduce the cost (from 73% of the EEC budget in 1985 to 37% of the EU budget in 2017 ) and to also consider rural development in its aims. It has, however, bee…


Origins and history

In the late 1950s to late 1960s, there was no example of a successful agricultural integration in Europe. There were only a few pre-existing legal stipulations that were considered, “weak, vague and highly underdeveloped”. As part of building a common market, tariffs on agricultural products would have to be removed. However, the political clout of farmers, and the sensitivity of the i…


Overview

The CAP is often explained as the result of a political compromise between France and Germany: German industry would have access to the French market; in exchange, Germany would help pay for France’s farmers. The CAP has always been a difficult area of EU policy to reform; it is a problem that began in the 1960s and one that has continued to the present, albeit less severely. Change…


Agricultural production support and common organisation of markets (I pillar)

This part of CAP is financed from the European Agricultural Guarantee Fund (EAGF). Each country can choose if the payment will be established at the farm level or at the regional level. Farmers receiving the SFP have the flexibility to produce any commodity on their land except fruit, vegetables and table potatoes. In addition, they are obliged to keep their land in good agricultural an…


Rural development policy (structural policy, II pillar)

Since 2000, the “second pillar” of the CAP, the EU rural development policy has been in effect, financed since 2007 from the European Agricultural Fund for Rural Development, one of the five European Structural and Investment Funds. This policy aims to promote the economic, social and environmental development of the countryside. Its budget, 11% of the total EU budget, has been allocated along three axes. The first axis focuses on improving the competitiveness of the farm …


Criticism

The CAP has been roundly criticized by many diverse interests since its inception. Criticism has been wide-ranging, and even the European Commission has long acknowledged the numerous defects of the policy. In May 2007, Sweden became the first EU country to take the position that all EU farm subsidies should be abolished, except those related to environmental protection.


See also

• Common Fisheries Policy
• Agriculture and Fisheries Council (Council of the European Union)
• Directorate-General for Agriculture and Rural Development
• European Commissioner for Agriculture and Rural Development


Further reading

• Akrill, Robert, The Common Agricultural Policy (Sheffield: Sheffield Academic Press, 2000).
• European Commission. “Agriculture”. The EU’s common agricultural policy (CAP): for our food, for our countryside, for our environment. Retrieved 10 July 2018.
• Fennell, Rosemary, The Common Agricultural Policy of the European Community (London: Harper Collins, 1979; 2nd. ed. Wiley-Blackwell, 1988).

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