Therefore the amount of surplus often increased in different years. This is very inefficient and expensive. Leave a Reply Your email address will not be published. This caused prices to fall and lower revenues.
CAP has encouraged farmers to increase output with the use of artificial fertilizers and pesticides causing problems for the environment. Therefore there could be an extension to aid for environmentally friendly measures such as organic farming.
Disease such as BSE can wipe out a farmers income therefore requiring intervention extract C 1: However this could easily have been done with much less cost and distortion of the market.
However this can be overcome by more direct aid payments. Some farming pressure groups may be unhappy but there can be a clear gain to the EU because the money saved can be spent on more worthwhile projects such as subsidising depressed areas both rural and urban.
Extract D states that the fund primarily goes to large farmers and landowners. Demand for food is inelastic therefore an increase in supply can lead to a fall in revenues 1: It is especially important given the expansion of the EU into the east.
These include i ensure a fair living standard for farmers ii Stabilise markets iii Assure availability of supplies and reduce dependence on imports iv Ensure reasonable prices for consumers 1: They have received more than they need but small farmers are still struggling e.
The US has retaliated against EU exports in response to the high degree of protection given to agriculture. A ceiling could be imposed on payment to farmers.
One reason for this is that foodstuffs have a low income elasticity of demand. This would have several benefits i It would lower prices for consumers ii It would help trade negotiations because EU would no longer have to impose variable import levy and therefore farmers in other countries would be better off iii It would eliminates all food surpluses iv It would be less costly for the EU as they would not have to buy the food.
In CAP expenditure cost 36 billion Euros. The EU had to buy this surplus. Extract D states that countries such as Japan and Korea have a high amount of subsidies given to farmers measured by Producer Subsidy Equivalents.
This would enable them to gain a certain level of income from products which often had low prices.
Therefore farmers do not benefit from rising incomes, as people do not buy more food 1: Essay on Common Agricultural Policy 1: In addition these can be more targeted to farmers who really need them rather than paying landlords who are already well off.
To maintain these target prices it was necessary to do two things: Therefore CAP is now beginning to direct funds in a more beneficial way.Common Agriculture Policy (CAP) Agriculture has been at the heart of the European Union project since the very onset of it, the Common Agric.
Essay on Common Agricultural Policy Why Governments have often intervened in Agricultural Markets in the EU Extract B mentions 4 objectives of CAP as mentioned in the treaty of Rome. Common Agricultural Policy (CAP) Essay - The Common Agricultural Policy (CAP) represents the set of policies that the European Economic Community first and the European Union, after, have adopted in the agricultural sector conceiving it as a strategic field to achieve an equal and stable development in the Member States.
The Common Agricultural Policy (CAP) is an example of a minimum price buffer stock scheme for agricultural products to prevent a “market crisis”. A minimum price is a guaranteed level of price for goods and services.
The Common Agricultural Policy (CAP) is a policy, set forth by the European Union (EU). It also comprises of a set of rules that control the manufacture, trade, and processing of agricultural products. The CAP currently accounts for almost fifty percent of the EU budget, however, this number.
The European Union's Common Agricultural Policy (CAP) was introduced in the early s. It remains largely managed by the provisions of.Download