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EU Close to Adopting the Common Agricultural Policy

05/29/2021

Ministers from 27 member states have entered the final stage of negotiations to establish the EU Common Agricultural Policy (CAP) that has been under development for over three years.  The program will involve payments to farmers amounting to $475 billion, approximately 30 percent of the 2021-2027 E.U. budget.

 

The proposed CAP will be heavily weighted to environmental remediation and suppression of global warming. A goal will be to reduce greenhouse gas emissions by at least 10 percent and to constrain application of pesticides.

 

Critics of the proposed CAP note that targets are inadequately quantified. Frans Timmermans representing Holland notes that 80 percent of payments will be made to 20 percent of the farm sector with a disproportionate amount received by large landowners.  This objection could be addressed by placing a cap on individual receipts or prioritizing payments to individual farmers.  Representatives of farming associations are concerned that restrictions will result in higher costs and lower productivity that will place E.U. farmers at a disadvantage compared to nations without environmental restrictions.