Common Agricultural Policy

The Common Agricultural Policy (CAP) is a system of European Union agricultural subsidies which represents about 44% of the EU's spending (?43bn). These subsidies work by guaranteeing a minimum price to producers and by direct payment of a subsidy for crops planted. This provides some economic certainty for EU farmers, ensuring production of a certain quantity of agricultural goods. Reforms of the system are currently underway including a phased transfer of subsidy to land stewardship rather than specific crop production from 2005 to 2012. Detailed implementation of the scheme varies in different member countries of the EU.

Related Topics:
European Union - Agricultural - Subsidies - Minimum price

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