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Common Agricultural Policy

Common Agricultural Policy. Milena Vicenová CULS Prague, November 2013. Common Agricultural Policy . From the history of CAP Success story with weaknesses CAP reforms CAP 2014-2020 Implementation of the CAP in the Czech Republic. Common Agricultural Policy . System of financial support

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Common Agricultural Policy

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  1. CommonAgriculturalPolicy Milena Vicenová CULS Prague, November 2013

  2. Common Agricultural Policy • From the history of CAP • Success story with weaknesses • CAP reforms • CAP 2014-2020 • Implementation of the CAP in the Czech Republic

  3. Common Agricultural Policy • System of financial support • First common EU policy • Treaty of Rome defined the general objectives of a CAP • Entered into force in 1962 • Reaction on the lack of foodstuffs in Europe after the World War II • Better productivity in the food chain • Self-sufficiency and food security, affordable food for citizens • Increasing competitiveness • CAP based on family farm concept

  4. Common Agricultural Policy

  5. CAP Instruments • Unity of the market based on the free movement of agricultural products • Abolishment of barriers to trade • Markets organised by products with prices being unified and guaranteed • Common Market Organisations • Community preference • Common intervention • European Agricultural Guidance and Guarantee Fund (EAGGF) and establish financial solidarity.

  6. Cap a Success Story • Productivity greatly increased • Increased productivity - share of agriculture on the GDP 1,7 % in 1995 • High yields of plant production and livestock • Stability of farmers´income and improved living standards • Cheaper foodstuffs • Food security Europe became No. 2 world supplier of farm products

  7. Weaknesses of the CAP • Extremely high spending for the CAP • – 75 % of the EU budget! • Lack of motivation • Serious over-production • „Mountains of butter, lakes of milk“ • Protests from the third countries • Adverse impact to environment

  8. Historical Development of the CAP

  9. CAP Reforms 1992MacSharry reform to: • limit rising production • adjusting to the trend toward a more free agricultural market • respect the GATT agreements 2003 Fischler Reform • the most radical in the history • decoupled farm income support • Rural development concept

  10. CAP Expenditure

  11. Percentage of EU Farm Land

  12. Implementation of the CAP in the CR • Pre-accession instrument SAPARD 122,5 mil. EUR • Difficult accession negotiations of Chapter 7 Agriculture • Transition periods and transitional measures – 52 processing plants (2006), cages for laying hens (2009) • Phasing in of direct payments • SAPS, SPS • Quota for flax, milk, planting rights for wine yards • Support to rural development

  13. Implementation of the CAP in the CR • 2007 simplification of the CAP – two funds established: EAFRD and EAGF • Two pillars concept: • Production support (80 %) - EAGF • Rural development (20 %) – EAFRD CR 3 bill. EUR • Payments per hectare SAPS, SPS • Single Common Market Organisation – replaced 21 COMs • „Health Check“ in 2008

  14. CAP after 2013 • A fairer CAP, more transparent distribution of money, active farmers only • no single Member State receives less than 75% of the Community average by 2019 • SAPS until 2020 • In 2015 abolishmentof milk quota • In 2017 abolishment of sugar quota • Support of young farmers (+ 25 %) and small farms (100 ha maximum) CAP environment friendly – greening • New crisis management tools

  15. CAP after 2013 - Heading 2 • 2007 – 2013 369,8 bill. € 291 bill. € first pillar - production 76,7 bill. € second pillar – rural development • 2013 – 2020 382,9 bill. € 281 bill. € first pillar - production 89,9 bill. € second pillar – rural development 38 % of the EU budget compared with 75 % in 1962

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