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The Common Agricultural Policy

The Common Agricultural Policy. Jo Eldridge, Alison Fox, Lizzie Simpson, George Tickell and Chris Wenzinger,. Why the Common Agricultural Policy was set up?. Treaty of Rome (1957) Common Market Market Unity Community Preference Financial Solidarity Objectives

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The Common Agricultural Policy

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  1. The Common Agricultural Policy Jo Eldridge, Alison Fox, Lizzie Simpson, George Tickell and Chris Wenzinger,

  2. Why the Common Agricultural Policy was set up? Treaty of Rome (1957) Common Market Market Unity Community Preference Financial Solidarity Objectives Increase productivity- technical progress, optimum use of the factors of production (labour) Fair standard of living for agricultural community Stabilise market Secure available supplies Provide food at reasonable prices

  3. How is it used? • State intervention • Subsidies- guarantee minimum price to producers • originally paid to produce • more recently paid to not produce • Buys surpluses- destroyed, stored or “dumped”- keeps price at or above market level • External tariffs- levies imposed on agricultural products from non-EU states- higher prices

  4. Development of the CAP • 1960- Mansholt plan • Removal of small inefficient farms in place of the larger mass-producing farms (failed) • 1984- Introduction of quotas for milk • Lowered price of milk, reduced production of milk • 1986- Agricultural products included in GATT • 1992- MacSharry reforms • Limited rising production • Heading towards a free agricultural market

  5. Advantages of the CAP • No Famine • Preserves Environment • Preserves Rural Communities

  6. Disadvantages of the CAP • Over Production • Expensive • Harmed Farmers in Other Countries • Environmental Problems • Conflict • E.U. • Rest of the World

  7. French Agriculture • Shaped by C.A.P. • Huge diversity of soils and climates • Total agricultural area • 33million hectares

  8. Farms • Numbers in constant decline • Dependant on retirement age and European and national farm closure schemes. • Employment in holdings is proportional to farm size and and area available per worker.

  9. Changes from the 1930s • 1930s – France could not support nation’s food needs. • 1945 – need for food, but workforce had to be split between reconstruction and agriculture. • Modernisation lead to imbalances between demand and production.

  10. Introduction of European Common Market • Opportunity and danger • CAP protected the domestic market, and agricultural prices could be regulated • Restructuring of agriculture has taken place reasonably smoothly

  11. Future of the CAP Fundamental reform of the CAP June 26th 2003 • Decoupling of subsidies and production (Single Farm Payments) • Incorporation of environmental and social issues into the agricultural policy • Payments conditional on compliance with environmental, food safety, animal and plant health and animal welfare standards

  12. Scenario: (partial) re-nationalisation of the CAP • Individual member states paying part of subsidies to farmers • Condition: Member governments agree to take on part of cost currently borne by E.U. budget • France also believed farm policies should be conducted at a European level

  13. WE CONCLUDE… • Although the Common Agricultural Policy is far from perfect, no better solution has yet been found

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