Common Agricultural Policy

Common Agricultural Policy 2014-2020 meeting of Chairpersons of Agriculture Committees of the EU member states in the Polish Senate

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CAP2004beneficiaries

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Bundesarchiv B 145 Bild-F004665-0003, Walter Hallstein

Common Agricultural Policy (CAP) is a comprehensive system of European Union (EU) policies and programs aimed at managing the agriculture sector across its member states. Established in 1962, the CAP's primary goals include increasing agricultural productivity, ensuring a stable supply of affordable food, securing the livelihoods of EU farmers, and promoting environmental sustainability within the farming sector.

History

The CAP was created to address food shortages and the instability in the agricultural sector experienced in Europe after World War II. Its foundations were laid in the Treaty of Rome (1957), which aimed to increase agricultural productivity, ensure a fair standard of living for the agricultural community, stabilize markets, assure the availability of supplies, and ensure reasonable prices for consumers.

Objectives

The objectives of the CAP have evolved over time, reflecting the changing priorities of the EU. Initially, the focus was on productivity and food security. However, over the years, the CAP has incorporated goals related to environmental protection, climate change mitigation, and rural development. The current objectives include:

• Supporting farmers and improving agricultural productivity, so consumers have a stable supply of affordable food.
• Ensuring European agriculture is sustainable, climate-friendly, and contributes to the management of natural resources.
• Maintaining rural areas and landscapes across the EU, and keeping the rural economy alive through support for farming communities.

Policies and Reforms

The CAP operates through two main pillars:

• Pillar 1: Direct payments to farmers and market measures. This pillar includes income support for farmers, ensuring a stable income despite market fluctuations and external pressures. It also encompasses measures to manage the supply of certain goods, stabilize markets, and support prices.
• Pillar 2: Rural development. This pillar focuses on strengthening the competitiveness of the agricultural sector, promoting sustainable land management, and supporting rural economies.

Over the decades, the CAP has undergone several reforms to address challenges such as overproduction, environmental degradation, and the need for more sustainable practices. The most recent reform, agreed upon in 2021, aims to make the CAP more responsive to current environmental and climate challenges, with a stronger emphasis on sustainability and green practices.

Funding

The CAP is one of the largest items in the EU's budget. Funding for the CAP comes from the European Agricultural Guarantee Fund (EAGF), which finances direct payments to farmers and market measures, and the European Agricultural Fund for Rural Development (EAFRD), which supports rural development programs.

Criticism and Challenges

The CAP has faced criticism for various reasons, including its impact on small-scale and less competitive farmers, environmental concerns, and its contribution to overproduction and waste. Critics argue that the policy has favored larger agricultural businesses and has not adequately addressed the environmental impacts of farming. The reforms aim to address these issues by promoting more equitable support and integrating greener practices.

Future Directions

The future of the CAP is likely to see further reforms that emphasize environmental sustainability, climate action, and the digital transformation of agriculture. The EU aims to align the CAP more closely with the European Green Deal and the Farm to Fork Strategy, ensuring that the agricultural sector contributes to the EU's environmental and climate objectives.