Common Agricultural Policy

Question 1

What is the Common Agricultural Policy?

Answer 1

The Common Agricultural Policy (CAP) is the EU’s system of agricultural subsidies, regulations, and rural development programs aimed at supporting farmers and ensuring food security.

It has been one of the largest and most controversial EU policies, heavily influencing UK-EU relations during the UK’s membership.

Question 2

Why Was CAP Controversial for the UK?

Answer 2

1. Financial Contributions and the ‘CAP burden’
   UK contributed significantly but recieved less → Thatcher’s rebate
2. Agricultural System differences
   UK had smaller farms than France, CAP benefited mainland Europe more
3. Food Prices and Consumer Costs
   CAP raised food prices by placaing tariffs, UK paid higher prices than they would in a free market.

Question 3

Once Brexit happened, what replaced CAP in the UK?

Answer 3

Post-Brexit, the UK replaced CAP with its own system, like the Environmental Land Management Scheme (ELMS) in England, which focuses on paying farmers for environmental sustainability rather than direct subsidies for production.

Question 4

How does CAP affect UK farmers today?

Answer 4

• CAP rules still affect UK farmers because any UK food exports to the EU must comply with EU agricultural standards.
• UK-EU trade deals must account for EU agricultural tariffs and quotas, which have created challenges for sectors like fisheries and meat exports.
• Reduced Financial Support to Farmers. CAP provided direct financial support to UK farmers, ensuring stable production.Some farmers argue that reducing direct subsidies threatens food security by making domestic farming less profitable.

Question 5

How does leaving the CAP affect UK food security?

Answer 5

1. Increased Food Prices: UK imports a majority of its food from the EU. Trade frictions, tariffs, war on Ukraine → imported food more expensive.
2. Reduced Financial Support to Farmers → domestic farming becomes less profitable
3. Labour Shortages in Agriculture: Brexit ended freedom of movement, creating a shortage of seasonal migrant workers (who made up a significant share of farm labor) → reduced production

Question 6

How does leaving CAP impact UK-EU trade?

Answer 6

Leaving the Common Agricultural Policy (CAP) impacts UK-EU trade by:

1. Ending tariff-free access: The UK no longer gets tariff-free access to the EU for certain goods, which means extra costs and delays, especially for food.
2. Customs checks: New customs checks and safety controls, especially for meat, dairy, and fresh produce, slow down trade and increase costs.
3. Trade declines: UK food exports to the EU dropped by 26% in 2021, especially in dairy, meat, and seafood due to stricter regulations and delays.
4. Supply chain problems: New border controls cause delays at ports, leading to shortages and losses, particularly for perishable goods like fresh seafood.

Question 7

Does Brexit give the UK more flexibility in agriculture?

Answer 7

Yes,
- Supporters argue that leaving CAP allows the UK to tailor its agricultural policy to its own needs, focusing on sustainability and innovation.
- The UK can strike independent trade deals (e.g., with Australia and New Zealand), though these deals have raised concerns about lower food standards and increased competition for UK farmers.

Question 8

What might prevent the UK from strengthening their domestic agriculture?

Answer 8

Some argue the UK should boost domestic production to reduce reliance on imports. However, climate change, labor shortages, and the cost of farming may make this difficult.