CAP 1962-1992.

Question 1

Aims.

Answer 1

• To increase agricultural productivity within member states.
• To ensure fair standard of living for farmers.
• To stabilise agricultural markets within and between member states.
• To ensure reasonable consumer prices.
• To maintain employment in agricultural areas.

Question 2

Key terms.

Answer 2

• Import tariffs: Taxes applied to goods and imported into the EU.
• Intervention prices: These are set by the EU guaranteeing prices for each commodity.
• Subsidies: This is money paid to farmers to grow particular crops therefore maintaining home grown supplies. Usually paid on the amount of land growing the crop rather than on crop yields.

Question 3

Results.

Answer 3

• EU farmers tended to over produce which created surpluses known as mountains and lakes.
• Agriculture produces 5% of the EU’s income however at one time 70% of the budget went on supporting farmers.
• Net gainers from CAP: France, S Europe with smaller less efficient farms.
• Net losers: Those with a smaller agricultural sector but with efficient farms e.g. UK.

Question 4

Problems.

Answer 4

• Surplus production and huge storage costs.
• Over-intensive farming: using fertilisers which damaged the environment.
• Growing tensions between the EU and trading partners e.g. USA, Australia, New Zealand.
• LEDCs found it difficult to trade with the EU.
• Large, prosperous farmers benefit more than smaller small-scale farmers caused rural-urban migration.