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Common Agricultural Policy

CAP Presentation for Permaculture Research Foundation (PRF)
by

Malcolm Borg

on 6 October 2011

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Transcript of Common Agricultural Policy

COMMON AGRICULTURAL POLICY Oldest Response to Post-War Food Shortages MAIN PRINCIPLES Improving Productivity Ensuring Fair Income for Farmers Stabilize Markets Secure Food Supplies Provide just food prices for consumers FOR THIS TO OCCUR UNIFIED MARKET - > FREE MOVEMENT FINANCIAL SOLIDARITY SUSTAINED PRODUCTIVITY TO ENSURE GUARANTEED PRICES IMPORT TARIFFS EXPORT SUBSIDIES PURCHASING OF SURPLUSES GUARANTEED SUPPLY OVER-PRODUCTION OF BUTTER OVERPRODUCTION OF WINE BUTTER MOUNTAINS WINE LAKES OTHER HARMFUL CONSEQUENCES DECREASE IN LABOUR FORCE TO OPTIMIZE PRODUCTION EFFICIENCY STORING SURPLUSES EXPENSIVE EXPORTING TO OTHER COUNTRIES AT LOW PRICES - DUMPING International friction because farmers in these countries were made redundant since their produce could not compete QUOTAS PREVENTS OVER-PRODUCTION TAXED IF PRODUCERS EXCEED QUOTAS MILK QUOTAS IN 1984 DIRECT PAYMENTS FARMER GIVEN DIRECT MONEY DEPENDING ON AREA GROWING A PARTICULAR CROP OBLIGATIONS FOR FARMERS SET-ASIDES LIMITING NUMBER OF ANIMALS REARED GOOD ENVIRONMENTAL PRACTICES Leave fraction of their land uncultivated Prevent surplus Reduce Farm Intensification (PILLAR I) SECOND PILLAR Financial Assistance to farmers who adopt agri-environmental schemes, who are in least favored areas and to invest in their farms to enhance productivity and competitiveness DECOUPLED ASSISTANCE DECOUPLING OF ASSISTANCE FROM CROP PRODUCED Assistance depended on land being farmed Subject to Cross-Compliance Environmental Practices Animal Welfare Food Safety AIMS STILL ENSURE BASIC INCOME PRODUCE ACCORDING TO DEMAND MORE WEIGHT TO ENV PRACTICES, ANIMAL WELFARE ETC. CHANGES IN CAP ...to make it greener, fairer, more efficient & more effective 3 OPTIONS 1. DO NOTHING LEAVES DIRECT PAYMENT UNCHANGED PROPOSES SOME CHANGES TO MARKET MANAGEMENT (E.G. INTERVENTION) STRENGTHENING OF THE PILLAR II 2. GRADUAL REFORM RE-DESIGN DIRECT PAYMENT TO BE MORE EQUITABLE BETWEEN ALL COUNTRIES INTRODUCING NEW SCHEME FOR SMALL FARMS 3. RADICAL REFORM PHASE OUT ALL DIRECT PAYMENTS Limited payments for environmental goods and for regions with natural constraint All intervention and import levies will be abolished AND THE DISCUSSION CONTINUES...
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