CAP REFORM

Should the CAP be reformed, and if so why and how?

Introduction

The Council of Agriculture Ministers of the European Union (EU) come to affirmation, in Luxembourg on 26 June 2003, on a basic restructure of the widespread farming principle (CAP), founded on the Commission suggestions offered on 23 January 2003. In line with the general objectives of Agenda 2000, this restructure will be presented from 2004 and 2005, accomplishing that restructure method in some localities and setting up a more steady principle structure for European agriculture. This breakthrough restructure will precede the CAP into a new era by altering the environment of EU support to the ranch part and the country economy.

The new CAP will:

_ be equipped in the direction of consumers' and taxpayers' concerns while extending to aid farmers;

_ safeguard the country finances and environment;

_ hold budgetary charges steady and manageable;

_ assist in negotiating a World Trade Organisation (WTO) farming affirmation that encounters the desires of EU agriculture and society.

 

The Key Elements of the New Cap

 

More market-oriented, easier and less trade-distorting support via:

_ the introduction of a single fee design for EU ranchers, unaligned (i.e.

"decoupled") from output, with restricted "coupled" components sustained where Member States address this essential to bypass abandonment of production;

_ the connecting of the single fee design to the esteem of ecological, nourishment security, animal and vegetation well-being and animal welfare measures, as well as to the obligation to hold all farmland in good farming and ecological status ("cross-compliance");

 

Strengthening of country development principle via:

_ the move of more EU cash, new assesses to encourage the natural environment, value and animal welfare and to assist ranchers to rendezvous new EU standards

_ a decrease in direct payments ('modulation') for larger ranches to investment the new country development policy;

 

Revisions to the market support components of the CAP via:

_ important restructures in the intervention means of parts of functional imbalance (butter, rye, rice)

_ changes in support means in other parts (durum wheat, drying aids, starch potatoes, dried fodder, and nuts)

_ a means for economic control and esteem double-checking that the ranch allowance repaired until 2013 is not overshot 3

 

Description Of The Reform Agreement

 

1. Major New Elements Of The Cap Explained

Reforming the CAP engages numerous comprehensive alterations, some taking location over a time span of years. The most significant ones are as follows:

 

Single fee scheme

A lone fee design will restore most of the premia (direct help payments to farmers) actually offered. The new lone fee design will not be connected to what a grower makes any more (in other phrases it will be 'decoupled'). The allowance of the fee will be calculated on the cornerstone of the direct aids a grower obtained in a quotation time span (2000 to 2002). A foremost objective of the lone fee design is to permit ranchers to become more market oriented and to issue their entrepreneurial potential. Management conclusions that in the past have been leveraged by what the CAP suggested in grants can now be taken on the cornerstone of market ...