• 28-NOV-2013


EU Farm Reform will Make Farms Greener, more Equitable between Old and New Member States

EU farm reform will make farms greener, more equitable between old and new member states
The EU's reform of the Common Agricultural Policy or CAP will target support for greener farms, active farmers and young farmers, and seek more equitable payments between old and new member states. The reform reduces the budget of the Common Agricultural Policy, though it remains the largest part of the European Union's 2014 to 2020 spending plan, taking up just under 40% of the funding, or about 50 billion euros a year. Now more than a half-century old, the CAP was established to ensure food security for Europe, stable markets for farmers and fair prices for consumers.

Among the key reforms effective January 2015, farmers in new member states are to rise toward convergence with those in older member states. There's also a so-called "Greening Payment" – where 30% of the spending is earmarked for sustainable farming. The reform favours smaller farmers and cuts payments for large farms. Individual payments above 150,000 euros will be subject to a mandatory 5% cut, and member states have the option to impose an even larger cut. Along with food security, the CAP is aimed at ensuring competitive prices. Milk quotas are to expire in 2015, and sugar quotas in 2017, giving additional time for that sector to adjust.

Available material includes an edited package.