The Common Agricultural Policy Jo Eldridge Alison Fox

The Common Agricultural Policy Jo Eldridge, Alison Fox, Lizzie Simpson, George Tickell and Chris Wenzinger,

Why the Common Agricultural Policy was set up? §Treaty of Rome (1957) §Common Market §Market Unity §Community Preference §Financial Solidarity §Objectives §Increase productivity- technical progress, optimum use of the factors of production (labour) §Fair standard of living for agricultural community §Stabilise market §Secure available supplies §Provide food at reasonable prices

How is it used? § State intervention § Subsidies- guarantee minimum price to producers § originally paid to produce § more recently paid to not produce § Buys surpluses- destroyed, stored or “dumped”keeps price at or above market level § External tariffs- levies imposed on agricultural products from non-EU states- higher prices

Development of the CAP § 1960 - Mansholt plan § Removal of small inefficient farms in place of the larger mass-producing farms (failed) § 1984 - Introduction of quotas for milk § Lowered price of milk, reduced production of milk § 1986 - Agricultural products included in GATT § 1992 - Mac. Sharry reforms § Limited rising production § Heading towards a free agricultural market

Advantages of the CAP § No Famine § Preserves Environment § Preserves Rural Communities

Disadvantages of the CAP § § § Over Production Expensive Harmed Farmers in Other Countries Environmental Problems Conflict § E. U. § Rest of the World

French Agriculture § Shaped by C. A. P. § Huge diversity of soils and climates § Total agricultural area § 33 million hectares

Farms § Numbers in constant decline § Dependant on retirement age and European and national farm closure schemes. § Employment in holdings is proportional to farm size and area available per worker.

Changes from the 1930 s § 1930 s – France could not support nation’s food needs. § 1945 – need for food, but workforce had to be split between reconstruction and agriculture. § Modernisation lead to imbalances between demand production.

Introduction of European Common Market § Opportunity and danger § CAP protected the domestic market, and agricultural prices could be regulated § Restructuring of agriculture has taken place reasonably smoothly

Future of the CAP Fundamental reform of the CAP June 26 th 2003 § Decoupling of subsidies and production (Single Farm Payments) § Incorporation of environmental and social issues into the agricultural policy § Payments conditional on compliance with environmental, food safety, animal and plant health and animal welfare standards

Scenario: (partial) renationalisation of the CAP § Individual member states paying part of subsidies to farmers § Condition: Member governments agree to take on part of cost currently borne by E. U. budget § France also believed farm policies should be conducted at a European level

WE CONCLUDE… § Although the Common Agricultural Policy is far from perfect, no better solution has yet been found