Time for a New Common Agricultural Policy

Many Europeans have never heard of it, but the Common Agricultural Policy is by far the single most important document for Europe’s 13 million farmers. Through its subsidy program, the CAP does nothing short of determine how much farmers are paid for the food they grow. The CAP is also by far the largest piece of the EU budget, with annual farm subsidies of about 50 billion Euros accounting for nearly half of all EU spending.

Right now, the CAP is in the midst of a major reform that will determine how much public money farmers receive through 2013. As it stands today, the largest 18 percent of European farms receive 85 percent of CAP subsidies, an inequity that contributes to the disappearance of 300,000 farms every year. Significant changes are needed to prevent even more farms from going out of business, more farmers from losing jobs, and more rural communities from losing economic and social vitality as big business moves in.

The CAP is actually paying farmers to stop farming. In Poland alone, 56,000 farmers older than 55 have been paid to retire because their farms were deemed to be non-competitive. Additionally, young farmers are not getting the support they need to start farms, particularly in Poland and Hungary, where onerous rules exclude many from qualifying for CAP funding.

Further, the EU spends millions of Euros in CAP money on non-agricultural activities such as tourism and “village renewal” rather than dealing with the problems at the heart of farming that prevent farmers making a decent living. Meanwhile, far too little money is spent on farming equipment, training, sustainable technologies and developing new agricultural products.