CAP Flashcards
CAP subsidies
• Fact
60% of farm incomes come in the form of EU subsidies
The risk of not having EU subsidies
It is estimated that without subsidies 90% of farms would collapse and land prices would crash
What are the aims of the CAP
1) Increase agricultural productivity
2) To secure availability of supplies
How much does British farmers receive
In 2015, UK farmers received €3.1bn in direct payments, according to the NFU.
This is 60% of their income
Reform since 2013
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
Reforms on Young Farms
Those under the age of 40 will be given a 25% top-up to their Basic Payment Schemes in their first five year.
What is Greening?
Farmers are expected to satisfy a number of environmental criteria in order to qualify for 30% of the BPS
What happens to farmers under the ‘set-aside’ policy?
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.
Example of the Greening environmental criteria
1) Keeping grassland
2) Creating environmental focus area
3) Growing at least three crops on any farm bigger than 30 hectares
Criticism of Greening
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
Poorest farmers and the CAP
Poorest farmers cannot claim subsidies unless they own or lease at lest five hectares
Problem with CAP
• Where does the subsidies go?
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
Facts on large agri-business taking most of the CAP subsidies
80% of CAP funding goes to just 25% of the largest farms
How much does the CAP cost the taxpayers
£10bn a year
How does the CAP add extra cost to the consumer
Tariff barriers to cheap imports make EU food more expensive
Lifting quota in 2017 and its consequence
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
CAP benefits
• Environmental aspects
CAP encourages farmers not to overproduce and use land effectively and environmentally
- Sustainability of agriculture
CAP benefits
• Food security
CAP keeps the EU fed and farmers productive against unstable prices
CAP benefits
• Ethical aspects
CAP is a price worth paying for food safety, animal welfare and consumer choice
CAP benefits
• Land prices
European Commission estimates that land prices would fall 30% across the EU if CAP subsidies were abolished.
CAP benefits
• Increased competition
New trading relationships with state outside the EU could lead to increased competition from countries with lower food, animal welfare and environmental standards.
CAP and Brexit
UK farmers would still have to meet EU health and safety standards if they want to export to the continent
UK exports to EU
Four of the top five export destinations for UK produce are EU member states, so UK farmers will want to keep trading with Europe
