The objectives of this Course Module are to:

  • Enable Young Farmers to understand how the CAP can be made to work for them, and

  • Use the information provided to plan future farming activities

You should use the information provided to enable you to ask the right sorts of questions and get appropriate “no nonsense” answers from local experts and those authorities in your Country charged with regulating and controlling the provisions of the Common Agricultural Policy.

PART I. What is the Common Agricultural Policy?
A. Introduction to the CAP
B. Sustainability and Agriculture
C. Origins of the CAP
D. Evolution of the CAP
E. 1992 CAP Reform
F. Agenda 2000

PART II. How does the CAP Assist Farmers in Europe?
A. Financial Solidarity: A Basic Principle of the Community
B. Common Organizations of the Market
C. State Aid Under the CAP


PART III. What are the Problems with the CAP?
A. Economic Costs
B. Impacts to the Environment
C. Effects on Public Health
D. Effects on Third World Countries
E. Effects on World Trade


PART IV. What are the CAP Reforms of June 2003?
A. Summary of 2003 CAP Reforms
B. Detailed Review of 2003 CAP Reforms


PART V. How will the CAP Apply to New Member States?
A. SAPARD
B. Application of the CAP to New Member States

Selected Bibliography and Websites
Glossary

 

 

Selected Bibliography

 BOOKS

 

Title: Agricultural Policy and Enlargement of the European Union

Subtitle: -

ISBN: 9074134882

Editor: Burrell A., Oskam A.

Publisher: Wageningen Academic Publishers

Place of Publication: The Netherlands

Year of publication: 2000

Language: English

Key words: agricultural policy, European Union, farming

Summary: The book is in four parts. The first part defines and reviews the problem from two different perspectives: how farming and food business functions in developed market economies and second what is market integration. Part two of the book studies Current EU Policy and its context. This includes the EU institutions and the CAP, current market prices and policy for structural, rural and regional programmes. Then follows an examination of the WTO and EU agricultural policy and part two concludes with a study of the monetary system.
Part three examines the experiences of agriculture in countries, which recently joined the EU: Spain and Portugal on the one hand and of Austria, Finland and Sweden on the other hand. Finally, part four covers the current agrifood issues in the Central Eastern European Countries (CEECs).

 

Title: The Reformed CAP

Subtitle: A Complete Guide

ISBN: 8174367

Editor: Gardner B.

Publisher: Food Policy International

Place of Publication: -

Year of publication: 2003

Language: English

Key words: Common Agricultural Policy, European Union, environmental and structural policies

Summary: 'The Reformed CAP' covers all the main aspects of the European Union's 2003 CAP reform: full details of the new system of decoupling farm support from production, the financing of new environmental and structural policies, the way in which the changes will affect the individual farmer, the impact on EU agricultural production and trade and the implications for the EU's role in international farm trade and agro-politics.

 

Title: CAP and the Rural Environment in Transition

Subtitle: A Panorama of National Perspectives

ISBN: 9074134599

Editor: Brouwer F., Lowe P.

Publisher: Wageningen Academic Publishers

Place of Publication: The Netherlands

Year of publication: 1998

Language: English

Key words: Common Agricultural Policy, European Union, Mediterranean agriculture

Summary: In recent years, policy makers have had to respond to criticisms of the environmentally damaging role of the Common Agricultural Policy (CAP). The 1992 reform of the CAP partly addressed the criticisms by reducing the incentives to intensify production and by promoting the beneficial effects of agriculture on landscape and biodiversity. Uniform responses or single environmental outcomes from a change in agricultural policy are unlikely. This publication based on empirical research addresses the environmental effects of CAP reform from the national perspectives of the different EU Member States. It includes edited and revised versions of 14 national reports complemented with additional contributions from experts in other countries.

 

Title: The Other Side of the Mountain

Subtitle: The Impact of Europe's Common Agricultural Policy on Sustainable Agriculture in the South

ISBN: 15611256

Author: United Nations Environment Program

Publisher: United Nations Environment Program

Place of Publication: -

Year of publication: 1999

Language: English

Key words: European Union, Common Agricultural Policy, sustainable agriculture, reforms

Summary: Providing an overview for international policy makers and practitioners, this paper looks at ways in which the CAP is affecting sustainable agriculture in the developing world, through detailed examinations of two areas of impact: beef and bananas. It introduces the background to the CAP, from its origins as a tool for ensuring food self-sufficiency in Europe while preserving rural quality of life, to the present, where both World Trade rules and the expansion of the EU require major reform. The notion of sustainable agriculture, and some of its strengths and weaknesses, are discussed, before the ‘Policies that Work’ project methodology and aims are introduced. The paper looks at the beef sector and banana sectors, and the ways in which CAP support to European farmers has impacted on agricultural practices, people and the environment in the South. Issues of sustainability are examined, and the policy future and alternatives examined. The paper closes with a look at proposed and existing reforms to the CAP (including a detailed examination of Agenda 2000 reforms), as well as the growing influence of the WTO on European policy making.


Title: A New Agenda for European Agriculture

Subtitle: A Radical Proposal

ISBN: -

Author: Wickman K.

Publisher: Timbro Publications

Place of Publication: Stockholm

Year of publication: 2001

Language: English

Key words: European Union, Common Agricultural Policy

Summary: The problems of the CAP are well known. But viable solutions to bring an end to the negative effects of European Agriculture are hard to find. In five years the Common Agricultural Policy (CAP) can be abolished and a free market for food established to the benefit of European consumers, Swedish economist and researcher PhD Kurt Wickman of the University of Gδvle and Chulalongkorn University, Bangkok, claims in a new report published in April 2001.

 

Title: Key Facts and Figures about the European Union

Subtitle: -

ISBN: -

Author: European Commission

Publisher: European Commission

Place of Publication: Brussels

Year of publication: 2004

Language: English

Key words: European Union, data, statistics

Summary: This booklet was published by the European Commission in 2004. In 79 pages, it provides short chunks of text and well presented data on areas like size and population, standard of living, work, transport, trade and Europeans living together. It is in PDF format, so can be printed out. It could form valuable material to supplement courses on EU trade, economics and business - for either further or higher education. It is available in all the official EU languages. Go to the Europa site at www.europa.eu.int/comm/publications to access them.

 

Title: The European Union

Subtitle: Economics and Policies

ISBN: 0273679996 

Author: El-Agraa M. A.

Publisher: Prentice Hall, Financial Times

Place of Publication: -

Year of publication: 2004

Language: English

Key words: European Union, economic integration, policies

Summary: The European Union is designed for readers from all disciplines studying the EU, its economics and policies, and the effects of economic integration. Its wealth of information, detail and analysis will ensure that it is read by students, researchers and professional policymakers alike. The European Union gained an excellent reputation since it first published and has established itself as a best-selling textbook in the field, offering a uniquely comprehensive guide to the economics and policies of the European Union. Retaining its original flavour, with historical development enshrined in its approach, this book reflects the dynamic and evolving nature of the EU and examines recent major changes. The book is written in such a way that the pure theory and measurement techniques are confined to separate chapters. The editor has taken great pains to ensure that the book reads as a complete whole, not as a collection of independent articles and the reader has a unique product which offers a truly single book, yet is authored by several acknowledged authorities in the various fields tackled.

 

Title: CAP Regimes and the European Countryside

Subtitle: -

ISBN: 0851993540

Editors: Brouwer F., Lowe P.

Publisher: CABI Publishing

Place of Publication: -

Year of publication: 2000

Language: English

Key words: Agricultural and environmental economics and policy, rural geography

Summary: This book reviews assessments on the environmental effects of the Common Agricultural Policy (CAP), and assesses the contribution of agricultural policy to environmental quality in the EU. It focuses on the role of agricultural policy in reducing harmful effects and/or creating benefits to the physical environment, landscape and nature. Emphasis is given to comparative studies, rather than any limited to one country. The commodity regimes of the CAP (e.g. the beef, wine and olive oil regimes) are considered in detail.

 

 

Title: EU ‘Global Player’

Subtitle: The North-South Policy of the European Union

ISBN: 90-5727-035-8 

Author: Van Reisen M.

Publisher: International Books

Place of Publication: The Netherlands

Year of publication: 1999

Language: English

Key words: European Union, Common Agricultural Policy, reforms and practices

Summary: This book examines the reasons for the lack of influence of the EU in shaping conditions conducive to development. It is argued that the EU could, and should, take greater responsibility for poverty eradication by creating a macro-economic and political framework for sustainable social development. Based on thorough analysis of the development policies and practices of the EU, and related policies, such as trade and investment, this book offers concrete proposals as to how EU North-South policies can be made more effective. It is argued that by placing the objective of a coherent European North-South policy higher on the political agenda, and through a radical reform of the Common Agricultural Policy, more consistent policies can be achieved which determine the overall economic framework for developing countries.

 

Title: A Bond Scheme for Common Agricultural Policy Reform

Subtitle: -

ISBN: 0 85199 744 9

Editor: Swinbank A., Tranter R.

Publisher: CABI Publishing

Place of Publication: -

Year of publication: 2004

Language: English

Key words: Agricultural economics and policy

Summary: The Common Agricultural Policy (CAP) is at an impasse. While it is said that existing policies are not tenable, all recent reform plans have been condemned as unacceptable. However, a “bond scheme”, as part of reform that pays more attention to society’s aspirations for the environment and rural development, offers a way forward. This book demystifies the bond scheme proposal and explores concerns expressed by farmers and policy makers. Written by economists, a political scientist and a practising politician, it offers rare insights into EU farm policy.

 

Title: Agricultural Economics and the CAP: An Introduction

Subtitle: -

ISBN: 0632041374

Editor: Brassley P.

Publisher: Blackwell Science Ltd

Place of Publication: -

Year of publication: 1997

Language: English

Key words: Agricultural economics, European agricultural industry, Common Agricultural Policy

Summary: The Common Agricultural Policy represents a significant portion of the EU budget and affects the cost of food for all EU members and the lives of millions of farmers. This concise guide to the economics of the European agricultural industry explains the controversial CAP, its benefits, and its drawbacks. This is a guide to the economics (and the relevant history and politics) of the agricultural industry and the European Union's Common Agricultural Policy.

Assuming no knowledge of economic theory, the book covers the economics of agriculture and provides an outline of the main features of the CAP.

 

Title: Slovenia and the European Union

Subtitle: Negotiations and their Consequences

ISBN: 961-6435-05-I

Editor: Kezunovič M.

Publisher: Public relations and media office of the Government of Slovenia

Place of Publication: Ljubljana

Year of publication: 2003

Language: Slovenian

Key words: European Union, Common Agricultural Policy

Summary: The book contains overview of Slovenia - EU negotiations including CAP and is easy to be read and understandable for the public. The book presents present situation in Slovenia and EU and the influence of EU membership on people’s life.

 

Title: Slovenia in the European Union?: 178 answers about Slovenian EU accession

Subtitle: -

ISBN: 961-6435-06-X

Editor: Čebular A., Grahek U.

Publisher: Public relations and media office of the Government of Slovenia

Place of Publication: Ljubljana

Year of publication: 2000

Language: Slovenian

Key words: European Union, agriculture

Summary: This book contains general and the most frequent questions about accession of Slovenia to the EU. Answers on the following items were given from the governmental and ministry experts. The following issues are covered: (a) Employment, (b) Agriculture (CAP, SAPARD, Slovenian rural development, SAEP, transition periods, GSO, complementary activities, bee keeping…), (c) Regional development, (d) Environment, (e) Economy, (f) Social affairs and health, (g) Interior, (h) Justice, (i) Education, (j) Culture and (k) European affairs.

 

Title: The Future of European Agriculture

Subtitle: -

ISBN: 1 901 229 38 6

Author: Wolf J.

Publisher: Centre for European Reform

Place of Publication: London

Year of publication: 2002

Language: English

Key words: European Union, Common Agricultural Policy

Summary: Europe’s Common Agricultural Policy no longer suits consumers or small farmers, it damages the environment and it hurts the world’s poorer economies. Julie Wolf argues that the EU will not be able to meet the challenges of enlargement and world trade liberalisation unless it reforms its farm policy drastically, notably by breaking the link between subsidies and production. Moreover, there should be more emphasis on improving food safety and the quality of the environment, and less on managed markets. Rural areas need investment in telecoms, education and transport as much as farm subsidies.

PERIODICALS

 

Title: The EU common agricultural policy
Subtitle: -
ISSN: -
Author: -
Magazine: The Guardian Weekly
Publisher: -
Volume: -
Issue: -
Year of publication: 2003
Language: English
Key words: European union, agriculture, Common Agricultural Policy
Summary: EU farming ministers have reached a long-awaited agreement on CAP reform. This is an interview by Simon Jeffery.

Title: Friendly EU Agriculture

Subtitle: Understanding the costs of an environmentally 'friendly' common agricultural policy for the European Union
ISSN: -
Author: Barnes, P. M., Barnes, I. G.
Magazine: European Environment 11
Publisher: Institute of Environmental Management and Assessment
Volume: -
Issue: -
Year of publication: 2001
Language: English
Key words: European union, environmental policy, Common Agricultural Policy, sustainability, reforms
Summary: Part of the bedrock of the European Union's (EU's) Environmental Policy is the principle that those who pollute the environment should pay for the cost of remedying the damage they cause (the polluter pays principle). In addition environmental objectives must be integrated into all the sectoral policies of the European Union. The Common Agricultural Policy's role at the centre of the EU's sectoral policies would appear to make it an ideal focus for implementing Article 6 of the Treaty establishing the European Community (TEC). If integration of environmental protection can be achieved in this central area of the EU's activities then a major source of environmental degradation could be overcome. However, if these requirements are applied to European agriculture the sector will face a budgetary and financial crisis of even greater magnitude than at the present time. Recent reforms of the CAP have been designed with the objective of achieving an agricultural sector that is moving towards sustainability. As this article argues the political, social and economic significance of the agriculture sector is such that national governments of the EU have repeatedly shied away from adopting the measures, which could significantly reduce the pollution from the sector. The proposals for reform made by the Agricultural Commissioner, Franz Fischler, were amended by the meeting of the European Council that took place in Berlin on 24/25 March 1999. These amendments substantially weakened the ambitions of the strategy for development of the EU, the Agenda 2000 adopted in 1997, for a number of reasons. This article examines the reasons for the disappointments with the amended reforms and speculates on the possible future path that may be taken to improve matters.

Title: CAP Reform, the Berlin Summit and EU Enlargement

Subtitle: -
ISSN: -
Author: Schrader Jörg-Volker
Magazine: Working Papers Series
Publisher: Kiel Institute for World Economics
Volume: -
Issue: 973
Year of publication: 2000
Language: English
Key words: CAP reform, land allocation, land rents, EU enlargement, rural development
Summary: The paper discusses the decisions on the CAP in the context of the Berlin summit. In a rather broad perspective the agricultural sectoral and related objectives are analyzed for their consistency and compatibility with higher-ranking societal objectives. The policies of allocational and distributional consequences are assessed in a qualitative manner by comparing them with a hypothetical first-best policy. The analysis focuses on the distortions in land allocation between agriculture, forestry and environmental purposes as well as on distributional consequences, taking into account the envisaged eastern enlargement. Among the consequences are excessive budget outlays and high economic rents for landowners, who are increasingly no active farmers themselves. Finally, problems of implementing a liberal CAP reform are discussed.

Title: Towards a Theory of the Reform of the Common Agricultural Policy

Subtitle: -
ISSN: -
Author: Kay A.
Magazine: European Integration Papers Online
Publisher: ESCA Austria
Volume: 4
Issue: 9
Year of publication: 2000
Language: English
Key words: European Union, agriculture, public administration
Summary: It analyses reforms of the Common Agricultural Policy (CAP) of the EU during the 1980s and 1990s and concludes that the most important mechanism behind the process of reform is the interaction of European Union institutions and member state governments. International groups have limited influence.

Title: The CAP and EU Enlargement: Prospects for an Alternative Strategy to Avoid the Lock-in of CAP Support

Subtitle: -
ISSN: -
Author: Daugbjerg C., Swinbank A. 
Magazine: Journal of Common Market Studies
Publisher: Blackwell Publishing
Volume: 42
Issue: 1
Year of publication: 2004
Language: English
Key words: European union, agriculture, Common Agricultural Policy

Summary: The integration of the central and east European countries (CEECs) into the Common Agricultural Policy (CAP) could become a major problem. At the Copenhagen European summit in December 2002, the EU agreed a transitional period with a gradual phasing in of direct payments. However, this strategy will not solve the problems of the CAP: budgetary limits remain problematic, the policy ignores possible developments in the World Trade Organization (WTO), and the extension of direct payments to the CEECs will further capitalize, and hence lock-in, agricultural support. The latter makes future reform even more difficult and, to overcome these problems, we suggest an alternative strategy to integrate the CEECs into the CAP. The EU should phase out direct payments by applying a bond scheme. Finally, we consider whether this option is politically viable.

Title: Cyprus in the EU: A Quantitative Analysis of Adopting the CAP

Subtitle: -
ISSN: -
Author: Pattichis C. 
Magazine: European Review of Agricultural Economics
Publisher: Oxford University Press for European Association of Agricultural Economists
Volume: 26
Issue: 4
Year of publication: 1999
Language: English
Key words: European union, agriculture, Common Agricultural Policy, Cypriot farms

Summary: This paper focuses on the (ex-ante) impact of the CAP on output, demand, trade and economic welfare in Cyprus, and also quantifies the inter-county transfers that arise through trade and through budgetary effects. The impact of the CAP is assessed under both the present CAP regime and under a regime based on the provisions of Agenda 2000. The analysis indicates that measures to support the low-income groups, to minimise the transfer to consumers of the producer price increases, and to improve the productivity and efficiency of Cypriot farms are necessary to minimise any adverse effects.

Title: EU Enlargement, the CAP and the Cost of Direct Payments: A Note

Subtitle: -
ISSN: 0021-857X
Author: Ackrill R.W.
Magazine: Journal of Agricultural Economics
Publisher: Agricultural Economics Society
Volume: 54
Issue: 1
Year of publication: 2003
Language: English
Key words: European union, enlargement, Common Agricultural Policy
Summary: Negotiations over EU enlargement have highlighted difficulties in extending the CAP - and in particular direct payments - to the applicant countries, given the spending limits agreed in Berlin in 1999. This note presents estimates of direct payment costs in the Eastern European applicants. It argues that the only way all member states in an enlarged EU can receive the same level of payments is if the payments currently prevailing in the EU15 are reduced. 

Title: The nature conservation value of European Traditional Farming Systems

Subtitle: -
ISSN: -
Author: Bignal E.M., McCracken D.I.
Magazine: Environmental Reviews
Publisher: NRC Research Press
Volume: 8
Issue: 3
Year of publication: 2000
Language: English
Key words: biodiversity, wildlife value, farming systems, European policy, agri-environment

Summary: The European landscape reflects many centuries of dynamic interaction between people and their natural environments. Indeed, much of the current biological and aesthetic value of the wide variety of "cultural" landscapes has been created and is now maintained by long-established farming systems. Such traditional systems (many of which are pastoral based) are generally well integrated with the environment and involve management practices that do not over-exploit the natural carrying capacity of the land. However, the rapid modernisation of agriculture that occurred after the 1939-1945 war resulted in an intensification of many European farming systems and has had severe negative effects on the environment. This modernisation initially occurred primarily in northwest Europe fuelled by the European Union (EU) Common Agricultural Policy (CAP), but with the expansion of the EU it is continuing and is certain to increase in southern, central, and Eastern Europe. The response of the EU to this fundamental imbalance between farming and the environment has included the introduction of compulsory regulations to ensure the implementation of minimum environmental standards in the production processes and the promotion of agri-environment programmes to encourage farmers to undertake positive environmental management on their farmland. The ongoing reforms of the CAP will undoubtedly place greater emphasis on agri-environment programmes and increasingly on the concept of "integrated rural development." There is, however, still a pressing need for detailed information to justify to the EU and world markets why certain types of farming system should be central to future European rural development policies.

Title: The Mid Term Review of the Common Agricultural Policy: The Future of Rural Development
Subtitle: -
ISSN: -
Author: Rudloff B.|
Magazine: Journals: European Institute of Public Administration (Maastricht): EIPASCOPE
Publisher: EIPASCOPE
Volume: 2002
Issue: 3
Year of publication: 2002
Language: English
Key words: Common Agricultural Policy, rural policy

Summary: Since the launch of Agenda 2000 in July 1997, rural development has gained political prominence as the second pillar of CAP. According to the European Commission’s recent Mid-Term Review, it will become even more important in the future not only because of its financial impact but also because of its reliance on novel and untested instruments such as modulation and cross-compliance support flexibility. In addition, it will fuel the discussion on the re-nationalisation of some elements of the CAP – the quintessential Community policy. This article analyses the various aspects of the already fierce debate on these instruments, which will certainly generate winners and losers among the Member States.

Title: European Union and the Common Agricultural Policy
Subtitle: -
ISSN: -
Author: Public Relations and Media Office of the Government of Slovenia
Magazine: Leaflet
Publisher:
Public Relations and Media Office of the Government of Slovenia
Volume:
-
Issue: 25
Year of publication: -
Language:
Slovenian
Key words: Common Agricultural Policy, European Union, rural development, agricultural markets

Summary: An information leaflet targeted at public and especially farmers explaining the following issues: (a) EU and the Common agricultural policy, (b) Agriculture as a significant economic sector in all accession states, (c) unfavourable natural conditions for agricultural production in Slovenia (forest, crumbled land, LFA, overgrowing), (d) Slovenia and CAP, (e) HACCP and plant protection, (f) Label of origin (geographic, traditional, organic), (g) SAPARD and Agency for agricultural markets and rural development, (h) transition periods and exceptions in negotiation process

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