Common Agricultural Policy

1. Common Agricultural Policy • At the time of Treaty of Rome, agriculture was a high priority for the post war govts in Europe. The Common Agricultural Policy (CAP) was established with the primary objective of supporting the income of farmers. It is one of only two common policies in the European Union. By Jenny Payne

2. Common Agricultural Policy • It is based on three main principles:- • free flow of agricultural commodities with harmonisation of regulations, common prices and prohibitions on levies or subsidies. • Community preference - EU products have priority. • Common financing of agricultural programmes.

3. CAP Objectives • The main objectives of the CAP are : • increasing agricultural productivity • ensuring a fair standard of living for the agricultural population • stabilise markets • guarantee regular supplies of agricultural products and ensure reasonable prices.

4. CAP • The Common Agricultural Policy is the most controversial and difficult to reform of the policies in the European Union.

5. Why is CAP controversial? • It has upset consumers who are forced to pay inflated prices for food despite production that is surplus to needs. This has become a major source of public scepticism about the benefits and wisdoms of European integration. • The EU has been forced to discourage production by subsidising exports (therefore angering other agricultural producers) and by paying farmers not to produce food.

6. Why is CAP controversial? • The contributions made by each country to the CAP budget can make it a controversial issue. Many countries contribute a large sum yet they have a small farming population. Paying for other countries farmers is a controversial issue.

7. Why is CAP controversial? • The CAP embodies peoples worst impressions of the EU and has acquired an image of being a corrupt and bloated bureaucracy. • There are many stories of fraud and abuse of CAP funds. Differences in EU and world prices have meant high refunds that provide a temptation for less honest farmers.

8. Why is CAP controversial? • CAP has created economic dependency as its abandonment would cause the bankruptcy of many farmers. • It has also pushed up the price of agricultural land and has failed to close the gap between rich and poor farmers. • Distribution of funds means that productive farmers get funds that could be used to aid poorer farmers.

9. Why is CAP controversial? • CAP has distorted agricultural prices in the world market, which is souring EU relations with major trading partners. • CAP perpetuates the idea of a protectionist European Union that cannot get its values right. • This makes CAP controversial among trading partners of the EU.

10. Why is CAP controversial? • CAP causes controversy because it has encouraged the use of chemical fertilisers and herbicides. Environmentalists are also unhappy about the EU encouraging farmers to cut down hedges and reclaim wetlands to make the farms bigger and more efficient.

11. Difficulties of CAP • Many of the problems of Cap could be rectified or reduced by reforming the policy. • However because CAP is such a contentious policy it has proved difficult to reform. • Since it was adopted it has only been subjected to 2 reforms; in 1992 and 2000.

12. Difficulties of CAP • Reform of CAP has produced outcry from farmers who are anxious to protect themselves and their livelihood. • French farmers are particularly opposed to reform the CAP which accounts for 33% of their income. Attempts to reform CAP are seen as a direct threat to the French rural sector.

13. Enlargement and CAP • The looming expansion of the EU, with ten nations set to sign up has many implications for the CAP. • If the EU were to continue to subsidise all the farmers at the current rates it would soon go bankrupt. • A lot of money would be required to bring up the standards of agriculture in countries such as Poland, where agriculture accounts for about 20% of the workforce. Many countries resent making large contributions for little benefit to themselves.

14. Conclusions • Money is the essence of the controversy surrounding the CAP. • Many countries resent the contributions they have to make. • Farmers resent the attempts to reform CAP in order to protect themselves.They are seen to be dictating to the government which makes the issue controversial.

15. Conclusions • The Common Agricultural Policy will always be seen as controversial by those who don’t get what they want from the policy. Every country wants to protect and promote their own interests.