Common Agricultural Policy (CAP)
explanatory Essay
1338 words
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. This sector's peculiarities caused agriculture to become the most integrated productive sector at the European level, the one in which the EU action supersedes the Member States' activity more intensively and more frequently. In this context, Italy has received large benefits from the CAP, since this has been an important instrument both to cooperate with other national states and to develop its territories, especially in the southern part of the country. The CAP is now based on two pillars: the first one encompasses the direct payments regime and the market measures, while the second one includes the rural development support measures. Direct payments guarantee the continuity of agriculture in Europe, assuring some income stability to farmers and safeguarding companies from prices fluctuations. These subsidies are conditional on the respect of some environment, food security, phitosanitary requirements and animals’ health norms. Italy is the EU member with he highest number of farmers, but it is the fourth one with respect to the amount of direct payment received. The market measures are aimed at avoiding that economic, climatic or sanitary crisis interrupt agricultural production and at guaranteeing the recognition of the correct added value to farmers by the market. Finally, the rural development policy is oriented toward maintaining the vitality of the countrysides through investments, modernisation and activities-support programmes in rural are... ... middle of paper ... ...ctiv.com/cap/cap-reform-2014-2020-linksdossier-508393 (visited on 20 November 2013) European Commission, La politica agricola coumune continua...(2012), http://ec.europa.eu/agriculture/50-years-of-cap/files/history/history_book_lr_it.pdf (visited on 20 November 2013) Istituto Nazionale di Economia Agraria, La nuova PAC post 2013: i temi e gli interessi dell’Italia (2013), http://www.inea.it/documents/10179/29596/audizione%20inea%20-%20commissione%20agricoltura%20camera%20-%209%20ottobre%202013.pdf (visited on 20 November 2013) Ministero dell politiche agricole alimentari e forestali, http://www.politicheagricole.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/287 (visited on 20 November 2013) Ministero dell politiche agricole alimentari e forestali, http://www.politicheagricole.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/6497 (visited on 20 November 2013)
In this essay, the author
- Explains that the cap was designed in 1962 and its objectives remain immutable. it was reformed in 1992 and shifted from sustaining the market through prices support to propelling competitiveness.
- Explains that the european commission called for some basic changes in the 2014-2020 framework. the parliament approved the reform package, which gives member states a more incisive role and greater autonomy.
- Explains that italy did not support the commission's external convergence plan, which would lead to the alignment of all eu countries' aid levels.
- Opines that italy favors the pursuit of an optimal compromise between productivity, employment and sustainability.
- Opines that the cap should be seen as a great opportunity for the national agricultural system and the entire european framework.
- Cites the istituto nazionale di economia agraria, la nuova pac post 2013: i temi and gli interessi dell’italia.
- Explains that the common agricultural policy (cap) is based on two pillars: direct payments, market measures, and rural development support measures.
- Cites burrell, caldwell, lamboglia, catania, russo, and sani for their articles on cap reform and the objectives of the common agricultural policy.
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- The Pros and Cons of Agribusinesopinionated essayI. Introduction Agriculture has long been a topic of interest and will continue due to the necessity of farming to supply a basic fundamental need – food. Farming is considered a stable economic activity as it provides products, jobs, and supplies to the local community as well as supporting the global infrastructure. The recent global economic conditions have caused an array of structural changes within the global infrastructure. These structure changes have directly impacted banking institutions, housing, lending processes, farming sectors, and privatization.
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2350 wordsRead More - Farm Subsidiesanalytical essayAgricultural subsidies is a very complex and controversial economic topic today. It will continue to be a hot topic as government continues it. It is largely debated in the United States as well as in other countries. The reason it is so largely debated is because it literally have an effect on the entire world market. Not to mention that the farm has been booming the last 5 to 10 years. This topic also tends to draw strong opinions in our area in particular due to the large agricultural community in our region. However, even within different states there are many supporters as well as opponents to these government subsidies.
In this essay, the author
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In this essay, the author
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- Explains that the farm subsidy program was created by president franklin roosevelt in the early 1930's for the purpose of helping farmers during the great depression.
- Explains that in 2012 the usda spent $22 billion dollars on subsidy programs for farmers. if farmers have a higher income than the average american citizen, they should not receive subsidies.
- Compares the definitions of subsidy and handout in webster's new collegiate dictionary. both are the receiving of a gift.
- Argues that supporters of farm subsidies state that the program is in place to give small farmers a better chance of success in the market.
- Opines that the government is using subsidies to get farmers to grow certain crops compared to others. if corn has a higher subsidy payment than any other crop, the likely hood of more farmers planting that crop is much higher.
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- Explains that crop insurance is not completely paid by the farmer because they chose the job and knew the risks. without insurance, many farmers would have gone bankrupt.
- Opines that technology has made farming profitable, and is now in a position to be cut off from subsidies.
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In this essay, the author
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In this essay, the author
- Opines that switzerland is one of the most prosperous countries in europe, with a stable government, sound economy, highly skilled labor force and strong tourism. however, in the coming years, switzerland will face three challenges that threaten their positive economic outlook.
- Explains that the swiss federal government is divided over joining the european union (eu). the eu threatened trade retaliation if switzerland didn't change its tax policies.
- Explains that switzerland is extremely protective of its agricultural industry. high tariffs and extensive domestic subsidization ensure that the country will remain self-sufficient.
- Explains that switzerland has one of the world's most stable economies, with exports exceeding imports by $9.6 billion. the country is self-sufficient and has a low inflation and unemployment rate.
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980 wordsRead More - Rising Food Pricesanalytical essay...earch and extension, rural infrastructure, and market access for small farmers. Rural investments have been sorely neglected in recent decades, and now is the time to reverse this trend. Farmers in many developing countries are operating in an environment of inadequate infrastructure like roads, electricity, and communications; poor soils; lack of storage and processing capacity; and little or no access to agricultural technologies that could increase their profits and improve their livelihoods. Recent unrest over food prices in a number of countries may tempt policymakers to put the interests of urban consumers over those of rural people, including farmers, but this approach would be shortsighted and counterproductive. Given the scale of investment needed, aid donors should also expand development assistance to agriculture, rural services, and science and technology.
In this essay, the author
- Explains that food prices have soared over the past year and a half and threaten to go up further if issues are not addressed immediately.
- Explains that in this project, they try to find out the causes for this price rise, the trends of the rise and the effects that this rise has had on us.
- Explains that oil prices have risen exponentially in the last few years and this has had a tremendous effect on the food prices.
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- Explains that drought has led to significant changes in australia's agricultural trends. some farmers are abandoning rice to plant less water-intensive crops like wheat or wine grapes.
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1504 wordsRead More - The Controversial Common Agricultural Policyopinionated essayThe Controversial Common Agricultural Policy The Treaty of Rome in 1957 outlined a general belief on the part of the six signatories that agricultural policy should be subject to heavy integration. This was due to various reasons and these were outlined in the Rome Treaty. These reasons centered on the establishment of self-sufficiency in agriculture across Europe by creating a minimum level of supply and a stable market which would allow farmers to enjoy relatively good living standards whilst ensuring that prices did not become too high for consumers. European leaders believed that agriculture was a "special case" that could not be left open to the vagaries of the market. Indeed, Robert Jones points out that "the volatility of agricultural markets and the need for security of food supplies has provided a plausible cause for government intervention in the sector" (Jones, 2001, pg210).
In this essay, the author
- Explains that the rome treaty in 1957 outlined a general belief on the part of the six signatories that agricultural policy should be subject to heavy integration.
- Explains that european leaders believed that agriculture was a "special case" that could not be left open to the vagaries of the market.
- Explains that the final provisions of a common policy were agreed in 1962 and fully implemented by 1968.
- Explains that the cap has been subject of intense criticism and debate since day one. to reach a satisfactory conclusion, it is necessary to consider certain key areas.
- Explains that funding for the cap, which accounts for around half of the eu budget, comes from a pooled resource called the european agriculture guidance and guarantee fund.
- Explains that the second section, guidance, accounts for the remaining ten per cent of cap expenditure, and is used for rural development.
- Explains that the european commission and agricultural council, after consultation with lobby groups and experts, set minimum prices for various agricultural products. if goods fall below this minimum price, the eu will purchase surplus goods from farmers.
- Explains that price support is used in relation to the import/export market and is known as 'community preference'. european farmers will only have the opportunity to sell their produce if their prices compete with global ones.
- Explains that if global prices are lower than eu prices, farmers will export their produce as they receive a refund from the eu which bridges the gap between union prices and world prices.
- Explains that the cap was widely accepted as a trade-off between france and germany. france feared that germany might dominate the european scene with its larger and more developed industrial sector.
- Explains that france, despite a decline to five per cent of employment in agriculture, still relies more on the industry than most other eu members.
- Opines that countries have no desire to see a radical reform of the cap as they are the main beneficiaries.
- Opines that the cap is no longer relevant as it was designed for an era when circumstances were different.
- Opines that a policy which encouraged farmers to produce as much as possible was sensible, as europe now produces 20 per cent more than it requires. however, european farmers are engaged in gross over-production.
- Explains that the increase in agricultural production is not reflected in demand and thus creates surpluses which must later be destroyed or dumped on internal or world markets with a substantial waste of economic resources.
- Argues that cap's goal was to ensure low prices for consumers, but it is debatable whether this has been achieved.
- Explains that the cap costs around fifty billion euros (or roughly about thirty five billion pounds), which is taken from the eu budget and accounts for around half of it.
- Explains that average food prices have been lower since the establishment of the cap in 1974. however, eu households spend just 15% of their income on food, compared to 50% in romania or 50%
- Opines that the cap has resulted in inequality and the fortunes of some farmers are vastly different to others.
- Explains that the eaggf is structured so that those with larger farms will receive more from the eu as a result of the price support mechanism.
- Argues that farmers receive an unfair advantage in comparison to other workers.
- Analyzes how the eu's self-sufficiency has resulted in a loosening of the view of uniqueness of agriculture.
- Explains that the cap has developed in tension with international trade and has been a recurrent source of argument between the eu and its trading partners.
- Opines that the usa has pushed hard for liberalization of the cap while the eu remains largely unwilling to change its fundamental principles, despite some concessions in the uruguay round in 1994 through gatt.
- Opines that verification of claims has been a responsibility for national governments and member states have been "lax" in carrying out this task.
- Analyzes the extent of fraud within the cap system that accounts for half of all fraud wastage in the eu budget. the final area of controversy concerns the environment.
- Opines that the use of genetically modified crops would help production levels and gm crops are the subject of intense debate.
- Explains that the eu has been aware of the existence of cap and reforms have been spoken of consistently since the beginning. in the late 1960's, the "mansholt plan" proposed that more money should be made available for guidance purposes.
- Opines that the macsharry reforms of 1992 were much more successful, reducing minimum guaranteed prices for several products and a drop in european prices to more closely resemble global prices.
- Opines that the eu has made attempts to stand up to criticisms of the cap but is still viewed with suspicion by many and this criticism is only likely to increase in the next few years.
- Opines that the common agricultural policy is a highly controversial matter for various reasons. it benefits some states more than others, and its lack of relevance to the modern.
- Opines that the cap is seen by many as a waste of time and resources, despite efforts at reform.
- Opines that the european union will remain controversial in the future as it faces up to new problems but it must avoid trying to deal with these with old solutions.
- Explains el-agraa, ali m, the european union: economics and policies, 6th edition, pearson, harlow, 1999.
1867 wordsRead More