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 ?
The Government had recently persuaded the EU to agree to a review of the Common Agricultural Policy in 2008, five years earlier than the existing arrangements were due for renegotiation.
France and Germany tried to agree to put off sweeping reforms to the Common Agricultural Policy before the Prime Minister arrived at an EU summit in Brussels.
After talks with Secretary of State Margaret Beckett, he said: ``The objective is not to abolish the Common Agricultural Policy, but to reform it so that it gives a better deal to farmers, rural communities, consumers and the environment.
THE National Farmers Union last night criticised Chancellor Alistair Darling after he claimed the Common Agricultural Policy and biofuels were forcing up food prices.
After the meeting, attended by farmers from across the county, the NFU claimed these Common Agricultural Policy reforms would leave UK farmers "wrapped in red tape".
According to him, this is regional coordination of the countries in the agricultural politics in context to the directions on the EU common agricultural policy.
The Heart Of Mersey was in toplevel talks with the European Parliament to try to change the focus of the common agricultural policy.
March 17 2010 -- The National Farmers Union in the UK is to address a hearing of the European Parliament's Agriculture and Rural Development Committee to argue for a strong Common Agricultural Policy.
Blair may compromise on Britain's pounds 3billion rebate but not if France digs in on the Common Agricultural Policy.
Ministers across the UK have agreed on how dairy farmers will get a top up payment this year to help offset the effects on milk producers of Common Agricultural Policy (CAP) reforms.
The session will be part of the committee's inquiry into the government's Vision for the Common Agricultural Policy, published in December 2005 to stimulate debate over CAP reform.

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