Agricultural Policy

Question 1

Goal / reasons

Answer 1

• Increase agricultural productivity
• Ensure lining-standard of agricultural community
• stabilize markets
• Ensure availability of suppliers
• Ensure that suppliers reach consumers at reasonable prices

Question 2

1962: Agreement on 3 principles of common agricultural policy

Answer 2

• Unity of markets (liberalization within EEC/EU)
• community preferences (protection by agricultural imports from non EU-countiers
• Financial Solidarity (European agricultural guarantee and guidance fund finances CAP)

Question 3

1964 Agreement of pries levels fro agricultural products: why and conseguences

Answer 3

to encourage production

Price support related to quantity produced

–> End of 70s stat 80s excess production in EEC –> which costs of storage, deterioration of food (bad image) -> introduction of export subsidies -> production surplus could be sold on the world market

1980: limit production by introducing quotas but still excess
1992: reform: premiums for not using agricultural land

Question 4

Agenda 2000: addition reform because:

Answer 4

• new regulation had to be found
• negotiations in the WTO about reducing trade-distorting agricultural subsides
• necessary to prepare EU eastern enlargement

Question 5

Agenda 2000: contents

Answer 5

further reduction of product prices & increase of direct payments to farmers

Question 6

2006 reform of sugar market because of

Answer 6

WTOs decision

Eu had to reduce subsided exports substantially
reduce quotas
reduce prices
production decrease

Question 7

Current challenges for EU agricultural Policy

Answer 7

Complying with WTO obligations

• reducing subsidies
• en of export subsidies in 2013

Maintain food security in the EU
Environment and Climate Change
Preservation of rural areas

Question 8

Objectives of the future CAP

Answer 8

Viable food production

• stabilize farm income
• Improve competitiveness of agricultural sector
• compensate for production difficulties
• guarantee sustainable production practices

Sustainable management of natural resources and climate action

balanced territorial development

• support rural employment
• promote diversification in rural economy
• improve condition for small farms

Question 9

Future Instruments

Answer 9

Direct payments
Market measures (intervention in the market)
Rural development