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Common Agricultural Policy. Milena Vicenová CULS Prague, November 2013. Common Agricultural Policy . From the history of CAP Success story with weaknesses CAP reforms CAP 2014-2020 Implementation of the CAP in the Czech Republic. Common Agricultural Policy . System of financial support

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common agricultural policy

CommonAgriculturalPolicy

Milena Vicenová

CULS Prague, November 2013

common agricultural policy1
Common Agricultural Policy
  • From the history of CAP
  • Success story with weaknesses
  • CAP reforms
  • CAP 2014-2020
  • Implementation of the CAP in the Czech Republic
common agricultural policy2
Common Agricultural Policy
  • System of financial support
  • First common EU policy
  • Treaty of Rome defined the general objectives of a CAP
  • Entered into force in 1962
  • Reaction on the lack of foodstuffs in Europe after the World War II
    • Better productivity in the food chain
    • Self-sufficiency and food security, affordable food for citizens
    • Increasing competitiveness
    • CAP based on family farm concept
cap instruments
CAP Instruments
  • Unity of the market based on the free movement of agricultural products
  • Abolishment of barriers to trade
  • Markets organised by products with prices being unified and guaranteed
  • Common Market Organisations
  • Community preference
  • Common intervention
  • European Agricultural Guidance and Guarantee Fund (EAGGF) and establish financial solidarity.
cap a success story
Cap a Success Story
  • Productivity greatly increased
  • Increased productivity - share of agriculture on the GDP 1,7 % in 1995
  • High yields of plant production and livestock
  • Stability of farmers´income and improved living standards
  • Cheaper foodstuffs
  • Food security

Europe became No. 2 world supplier of farm products

weaknesses of the cap
Weaknesses of the CAP
  • Extremely high spending for the CAP
  • – 75 % of the EU budget!
  • Lack of motivation
  • Serious over-production
  • „Mountains of butter, lakes of milk“
  • Protests from the third countries
  • Adverse impact to environment
cap reforms
CAP Reforms

1992MacSharry reform to:

  • limit rising production
  • adjusting to the trend toward

a more free agricultural market

  • respect the GATT agreements

2003 Fischler Reform

  • the most radical in the history
  • decoupled farm income support
  • Rural development concept
implementation of the cap in th e cr
Implementation of the CAP in the CR
  • Pre-accession instrument SAPARD

122,5 mil. EUR

  • Difficult accession negotiations of Chapter 7 Agriculture
  • Transition periods and transitional measures – 52 processing plants (2006), cages for laying hens (2009)
    • Phasing in of direct payments
    • SAPS, SPS
    • Quota for flax, milk, planting rights for wine yards
    • Support to rural development
implementation of the cap in the cr
Implementation of the CAP in the CR
  • 2007 simplification of the CAP – two funds established: EAFRD and EAGF
  • Two pillars concept:
    • Production support (80 %) - EAGF
    • Rural development (20 %) – EAFRD

CR 3 bill. EUR

    • Payments per hectare SAPS, SPS
  • Single Common Market Organisation – replaced 21 COMs
  • „Health Check“ in 2008
cap after 2013
CAP after 2013
  • A fairer CAP, more transparent distribution of money, active farmers only
  • no single Member State receives less than 75% of the Community average by 2019
  • SAPS until 2020
  • In 2015 abolishmentof milk quota
  • In 2017 abolishment of sugar quota
  • Support of young farmers (+ 25 %) and small farms (100 ha maximum) CAP environment friendly – greening
  • New crisis management tools
cap after 2013 heading 2
CAP after 2013 - Heading 2
  • 2007 – 2013

369,8 bill. €

291 bill. € first pillar - production

76,7 bill. € second pillar – rural development

  • 2013 – 2020

382,9 bill. €

281 bill. € first pillar - production

89,9 bill. € second pillar – rural development

38 % of the EU budget compared with 75 % in 1962