First published in 1982. Considerable public controversy surrounded the large amount of public expenditure devoted to agriculture under the European Community’s Common Agricultural Policy (CAP). There were serious disputes over how the farm support system operated and how it was financed. This book describes the CAP situation and summarises previous attempts to assess some of the economic and financial flows arising from its creation using a common framework of well-established economic theory and methods. The CAP turned out to have a number of ‘costs’, depending on the concept of ‘cost’ used, the alternative policies considered, and the various assumptions made. The bulk of the book presents the structure and results of a comprehensive model of European Community agricultural markets and the associated CAP support mechanisms. This model is validated against official Community budget figures and then run to simulate a number of policy options and their consequences. This title will be of interest to students of economics, geography and agriculture.

The majority of recent publications on the Common Agricultural Policy (CAP) of the European Union address current issues and specific applications. There is little available which attempts to increase understanding of the nature of existing policies, their development, intentions, problems and successes. The aim of this book is to improve knowledge and understanding of the ‘policy process’ and its application to the CAP, focussing on the principles of policy analysis. For while the details of agricultural and environmental policies evolve, the principles upon which they are based endure. The author uses economics as a basis for his exploration, as fairly simple economics holds the key to understanding many of the fundamental pressures to which agriculture and rural areas are subject. He explains the importance of the political and administrative context in which the process occurs, acknowledging the influence of environmental and sociological concerns. Such knowledge of the conceptual framework of the ‘policy process’ and its application to the CAP is essential for all concerned with agriculture and rural livelihoods, both within the European Union and in those countries trading with the EU. This includes both students and professionals. The book provides an understanding of these principles in terms of how and why policy changes, thus increasing the efficiency and efficacy of the process.

The Common Agricultural Policy (CAP) is a unique agricultural policy worldwide. For many years, its status as the only common European Community (EC) policy governed by EC institutions put it at the heart of European integration. Today the CAP is not the only common European Union (EU) policy. Even while it remains the sole instance of a regionally integrated agricultural policy, the CAP no longer embodies the same degree of cross-national harmonization of agricultural policy among EC/EU member states that it once did. The CAP has undergone policy reforms in the past two decades and these reforms have spawned a host of questions. What has caused the CAP to reform? How path-breaking are CAP reforms? Are they consistent with founding CAP goals or do they encompass new ideas about agriculture’s place in the economy and society? And what are the consequences of agricultural policy reforms: for European farmers, consumers and taxpayers; for European ‘public goods’ such as environmental sustainability and preservation of rural communities and landscapes; and for third parties outside the EU, including the WTO? This book was published as a special issue of the Journal of European Integration.

The Environment, Food and Rural Affairs Committee criticises the European Commission's proposed sweeping reforms of the CAP that would see the current complex and bureaucratic system of direct payments replaced by one that could be even worse. These changes include a new tier of environmental conditions, with penalties for farm businesses that do not comply or fail to meet new criteria for 'active' farmers, farm size and number of employees. The Committee sets out the key principles the UK government should promote. The first objective of the CAP should be to maintain and enhance the EU's capacity to produce food with a significant degree of self sufficiency and, in the long term, less reliance on income support from the tax payer. The UK's future food security is threatened by the low profitability of its agriculture. More than half of UK farm businesses would be unprofitable without the support they receive through the CAP. The Committee concludes that direct payments have a place within the CAP for as long as business conditions in agriculture fail to deliver a thriving and profitable industry. The CAP must deliver a competitive and viable agricultural sector that produces safe and high quality food with a lower environmental impact. The UK should press for the EU to argue more strongly for recognition of environmental and animal welfare production standards within trade agreements. The committee also warns that the EU proposal for a multi-tiered single farm payment will require expensive new computer systems and auditing.

Evidence taken before Sub-committee D (Environment and Agriculture)

Incorporating HCP 1250, session 2005-06, not previously published

This publication contains oral and written evidence taken by the European Union Committee (Sub-Committee D on the Environment and Agriculture) for its inquiry into the proposed changes to the financing of the Common Agricultural Policy (CAP) and the future of European agricultural and rural policy. The Committee's report is available separately (HLP 7-I, session 2005-06, ISBN 0104006722).

The CAP has traditionally been at the core of the European Communities and even now consumes half of the European Union's budget. This book emphasizes the long-term link between the CAP and the budget. It examines the aims of the Common Agricultural Policy as set out in the Treaty of Rome and discusses to what extent they have been achieved and whether they are relevant to the 21st century. The factors that have shaped the 1992 and 1999 CAP reforms are outlined, with the latter, in particular, demonstrating the budget's effect on CAP and CAP reforms. The internationalization of CAP with constraints being placed on it by the World Trade Organization is another important factor covered by the book. The 1999 reforms are measured against what may be allowed by the WTO and the demands of EU enlargement. This title is published in conjunction with UACES, the University Association for Contemporary European Studies. UACES web site can be found at www.uaces.org