Common Agricultural Policy


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Common Agricultural Policy (CAP)

in the law of the European Union, one of the very foundations, being the legal regime supporting the coordination of agriculture in Europe. Although included in the Common Market, it was necessary to make special provision for agriculture because of the contradictory nature of the policies of some founding member states, made none the easier by the accession of others. The essence of it is that the market is unified, allowing free movement of goods throughout the Community.

There is a Community preference protecting the market against imports from outside and the CAP is to be financially secure: the European Agricultural Guidance and Guarantee Fund was set up to this end. Market organizations have been set up for most products, which have the effect of stopping member states from setting up competing systems. The principal effect of the CAP differs in relation to different products: wheat and related produce are protected by intervention purchases made to support producers; beef and related produce are supported by excluding outside competition; and fruit and vegetables and wine are controlled by quality.

The intervention price is set as that at which the national authorities must buy certain crops - some farmers may be tempted to grow crops for the intervention price rather than any real market. The more member states become involved in the Union, the more interested they become in reforming the CAP rather than using it as an excuse for complaining. The target price is part of the cereal market scheme. It is the price at which it is expected that sales can be made in the next year in the Union. It is not a fixed price. It is established annually by the Council with a qualified majority on a proposal from the Commission after consulting the Parliament.

The threshold price is the price fixed for certain imports from outside countries. It protects Union farmers from outside cheap competition. It is fixed by taking the cost of imports and making sure that it does not exceed the set internal target price. Reforms introduced in 1999 emphasize food safety, environmental objectives and sustainable agriculture. These objectives, which fall outside the scope of market policy, now, with rural development, have become the second pillar of CAP. The reforms in 2003 consist of simplification of market support measures and direct aid by decoupling direct payments to farmers (the aid which they receive is not tied to production); reinforcing rural development by transferring market support funds to rural development through modulation (reductions in direct payments to large farms); a financial discipline mechanism (ceiling placed on market support expenditure and direct aid between 2007 and 2013). In 2004, a second set of initiatives was introduced including: reform of aid to Mediterranean products (tobacco, hops, cotton and olive oil) and a proposal for the reform of the common organization on the market in sugar.

References in periodicals archive ?
Mrs Varga also spoke about the planned reduction of the funds of the Common Agricultural Policy. 'We cannot forget about farmers either; we are unable to accept this significant reduction that is proposed for Hungary also in the area of the Common Agricultural Policy,' she stressed, adding that farmers are required to meet ever-mounting challenges, but they are not given any additional funds for the purpose.
We have agreed with Minister Ardanowski to work together to promote our common priority, and that it is necessary to ensure adequate funding for agriculture when negotiating the Common Agricultural Policy for the next period.
"That means scrapping the common agricultural policy and signing new trade deals.
As a result Mr Ewing said he was writing to the new PM to "urgently to seek confirmation of your pledge to reinstate the PS160m CAP (Common Agricultural Policy) funds that are owed to Scottish farmers".
Ministers will also exchange views on the environmental and climate-related aspects of the post-2020 Common Agricultural Policy reform package and will be informed on the state of play of African swine fever, animal welfare during transport, as well as plant protection products and pest management.
More than 18,000 eligible farmers will receive payments under the Common Agricultural Policy's Pillar 1 schemes, that will support investment, jobs and drive the rural economy forward.
The changes to the European Union's Common Agricultural Policy quotas have led the company to expand its site at Lomza, Poland to meet the demand for its potato starch products.
The necessity of a common agricultural policy was felt since the end of World War II, when the agricultural production decreased strongly, especially in France and Germany, which imposed some protectionist measures, such as the tariffs and support of production (The Agricultural Policy, 2003).
But the National Audit Office (NAO) said the cost to the public purse was likely to exceed that sum by the time the accounts for the current phase of the Common Agricultural Policy (CAP) - from 2005 to 2015 - were finalised in 2019/20.
PARyS (CyHAN)- French farmers demonstrated in front of world-famous Louvre museum with sheep on Friday to protest European Unions (EU) Common Agricultural Policy (CAP).
After the formal adoption of a set of delegated acts for the reform of the Common Agricultural Policy (CAP), on 11 March, the European Commission has made the documents public.
The funds come from the Common Agricultural Policy to improve the natural environment and grow the rural economy.

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