CAP

Question 1

CAP subsidies

• Fact

Answer 1

60% of farm incomes come in the form of EU subsidies

Question 2

The risk of not having EU subsidies

Answer 2

It is estimated that without subsidies 90% of farms would collapse and land prices would crash

Question 3

What are the aims of the CAP

Answer 3

1) Increase agricultural productivity

2) To secure availability of supplies

Question 4

How much does British farmers receive

Answer 4

In 2015, UK farmers received €3.1bn in direct payments, according to the NFU.
This is 60% of their income

Question 5

Reform since 2013

Answer 5

Farmers are no longer subsidised, but receive a lump-sum called the Basic Payment Scheme, and are encouraged to produce in response to consumer demand

Question 6

Reforms on Young Farms

Answer 6

Those under the age of 40 will be given a 25% top-up to their Basic Payment Schemes in their first five year.

Question 7

What is Greening?

Answer 7

Farmers are expected to satisfy a number of environmental criteria in order to qualify for 30% of the BPS

Question 8

What happens to farmers under the ‘set-aside’ policy?

Answer 8

Farmers had been leaving some land to prevent surpluses accumulating, but that land will now be put back into production, addressing the problem concerning food security.

Question 9

Example of the Greening environmental criteria

Answer 9

1) Keeping grassland
2) Creating environmental focus area
3) Growing at least three crops on any farm bigger than 30 hectares

Question 10

Criticism of Greening

Answer 10

1) Rules governing Green are vague and thus useless.
2) The EFAs do not have proper guidance
3) There is no evidence that growing three crops on a big farm helps the environment

Question 11

Poorest farmers and the CAP

Answer 11

Poorest farmers cannot claim subsidies unless they own or lease at lest five hectares

Question 12

Problem with CAP

• Where does the subsidies go?

Answer 12

The money goes to large agri-business, such as Tate & Lyle and big landowners. They receive more from the CAP than Europe’s small farmers

Question 13

Facts on large agri-business taking most of the CAP subsidies

Answer 13

80% of CAP funding goes to just 25% of the largest farms

Question 14

How much does the CAP cost the taxpayers

Answer 14

£10bn a year

Question 15

How does the CAP add extra cost to the consumer

Answer 15

Tariff barriers to cheap imports make EU food more expensive

Question 16

Lifting quota in 2017 and its consequence

Answer 16

Quotas on producing sugar within the EU will be lifted, and EU countries are likely to compete for more of the market, putting pressure on growers in the rest of the world

Question 17

CAP benefits

• Environmental aspects

Answer 17

CAP encourages farmers not to overproduce and use land effectively and environmentally

• Sustainability of agriculture

Question 18

CAP benefits

• Food security

Answer 18

CAP keeps the EU fed and farmers productive against unstable prices

Question 19

CAP benefits

• Ethical aspects

Answer 19

CAP is a price worth paying for food safety, animal welfare and consumer choice

Question 20

CAP benefits

• Land prices

Answer 20

European Commission estimates that land prices would fall 30% across the EU if CAP subsidies were abolished.

Question 21

CAP benefits

• Increased competition

Answer 21

New trading relationships with state outside the EU could lead to increased competition from countries with lower food, animal welfare and environmental standards.

Question 22

CAP and Brexit

Answer 22

UK farmers would still have to meet EU health and safety standards if they want to export to the continent

Question 23

UK exports to EU

Answer 23

Four of the top five export destinations for UK produce are EU member states, so UK farmers will want to keep trading with Europe