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The Common Agricultural Policy

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Roksi Yafet

on 13 December 2013

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Transcript of The Common Agricultural Policy

The Common Agricultural Policy
The Common Agricultural Policy (CAP)
is a partnership between agriculture and society.

It is between Europe and its farmers
established in 1962.

By: Roksi Yafet
What is CAP?
Its main aims are:

To ensure that EU farmers can make a reasonable living while facing
the challenges

To improve agricultural productivity

To create a stable and sustainable
supply of affordable food for the consumers
The economic environment is uncertain and unpredictable. There are many current and future challenges including:
• global competition

• economic and financial crises

• climate change

• rising costs of inputs (fuel and fertiliser)

• food security

• sustainable management of the natural resources

At the global level, food production will have to double in order to feed a world population of 9 billion people in 2050
One of the main focuses of the CAP is sustainability and sustainable development
how biological systems remain diverse and productive over time
Farmers are the most important people for the sustainability of the food sector.
They take care and maintain the soil, the landscape and the biodiversity.
But the market do not pay for this maintenance
To encourage them for this service, EU provides the farmers with income support and financial assistance to adjust their farming methods
In its early years, the CAP encouraged farmers to use
modern machinery
and
new techniques
, including
chemical fertilizers
and
plant protection products
.
These were necessary because the priority at that time was to grow more food for the population.
It was successful so the yield
increased enormously

and then stopped.
• to set systems to cope with the effects of
changing climate

• to avoid the
side effects

of farming practices

• to work in an
environment-friendly way

• to produce
regional specialties

reducing emission of greenhouse
gases

using less pesticides

managing the water usage
Now the emphasis has changed
So farmers and EU work together to produce food while protecting nature and guarding the biodiversity.
Within its 28 member states:
They make up 7 % of all jobs,
generate 6 % of European gross domestic product.
Other aims of CAP
Lowering the food cost

Encourage young farmers

Manage import & exports

In most EU countries today, the average family spends around 15% of its monthly income on food
.

It was 30% in 1962.
They also regulate the
labeling
and
tracebility
of the food products in order to give consumer the information that they
have the right to know
when buying their food.
This is done costs by balancing what consumers want and what farmers produce.
EU is the world’s biggest importer of foods.
Each year,
the EU typically imports close to €60 billion worth of agricultural products from developing countries.
On the other hand, it has a favorable climate, fertile soil and technical skills, Europe is one of the world’s most important producers of agricultural products
1962
CAP was born and it was foreseen as a policy to provide
affordable food
for EU citizens and
a fair standard of living
for farmers.
1984
Farms become so productive
that they grow more food than
needed. The
surpluses
are stored
and lead to ‘food mountains’.
Several measures
(dairy produce quota)
are introduced
to bring production levels closer
to what the market needs.
1992
The CAP shifts from
market support
to
producer support
.
Price support is scaled down, and
replaced with
direct aid payments
to farmers. They are encouraged
to be more
environmentally friendly
and increase the
sustainability.
Support was reduced by
29% for cereals
15% for beef.
1968
Mansholt:
(European Commissioner for Agriculture)

“if smaller farm owners
give up farming
,
the
money spent
for CAP will be lowered
and bigger farm owners will have a larger
farm making
more profit


2000
Agenda 2000
divide CAP into
2 pillars
Production support
– new agrienvironmental systems
Rural development
– young farmers, re-distribution of land and capital into new activities
2003
A new CAP reform
cuts the link
between
subsidies and production.
Farmers now receive an
income support payment
, on condition that they look after the farmland and
fulfill environmental, animal welfare
and
food safety standards
.
2006
Sugar reform
Minimum and maximum sugar prices was
reduced by 36%
From 631,9 euro/ton to 404,4 euro/ton
2011-2103
A new CAP reform proposal wants to
strengthen the competitiveness
of the agricultural sector,
promote innovation,

combat
climate change
support jobs and growth in
rural areas
Agricultural Policy after 2013

A special site was created where respondents could post their views.
4 questions were asked.
Responses were invited from three broad categories:

General public
Stakeholders
Research institutes
and others

5700 submissions were published.
1.Why do we need a CAP?

2.What do citizens expect from agriculture?

3.Why reform the CAP?

4.What tools do we need for the CAP of tomorrow?

Conclusions for CAP 2013

• Rethink the structure of the
two support pillars
and clarify the relationship between them;
• Make
adequate resources
available for
successful rural development
;
• Implement a
fairer CAP
– fairer to small farmers, to less-favored regions, to new member states;
• Introduce
transparency along the food chain
, with a greater say for producers;
• Create
fair competition conditions
between domestic and imported products;

CAP and Turkey
• Number of businesses in operation:
EU: 310,000 ...............Turkey: 34,780

• Number of people working:
EU: 4,2 Million.............Turkey: 328, 650

• Export
EU: 53,7 Billion €..........Turkey : 6,7 Billion $

• Import
EU: 50,8 Billion €........Turkey: 3,4 Billion $

Turkey has joined the
Customs Union
with the EU in 1996.

But the Turkish agricultural sector in the long run will have major effects on the
real accession to the EU
and therefore is one of the main problems in the
negotiations.


For being a part of the CAP;

The ultimate goal is
• reduction of the
“rural population dependent mainly on farming”
from the present
40%
of the total labor force to
10%
and to promote Turkish agro-industry
• adoption of international standards for agricultural commodities in the process of integration with EU

France
is the largest recipient of CAP funds (17% of the total in 2013), with
Spain (13%), Germany (12%), Italy

(10.6%)
and the
UK (7%)
all also receiving significant amounts.
Although getting smaller absolute amounts,
Greece and Ireland
receive the largest per capita payments.

Newer Member States get a less generous payment,
initially 25%
of the rate of the established countries.
Who benefits more?
Even though the rules of EU apply to all of the member states and all states should be qualified to enter,
Greece, Spain and Poland
were accepted to EU before they adopted CAP.
Harmonization efforts of Turkish Agriculture to CAP
Turkey became an
associate member
in 1963 with Ankara Agreement with European Economic Community.
Until 2000 support for agriculture was just about
subsidies
. Due to the Stand By agreement with International Monetary Fund,
agriculture in Turkey was reorganized
.
Direct payment practice
and
farmer registration
system were implemented in Turkey but wasn’t successful because it was
imposed by other countries.
In 2005 Agricultural Status of Turkey screening started and found to be
very hard to be adopted
into CAP.
HACCP, GHM, GMP, ISO 14000
systems were also implemented to increase
food safety
and decrease the risk.
Any questions?
Thank you for listening!
Full transcript