ANNEX
GLOSSARY
agri-environmental policy:
a branch of the Common Agricultural Policy (CAP) offering financial
aids to farmers for implementing environmentally-sensitive agricultural
practices. EU agri-environmental policy was substantially increased
in 1992 with the introduction of EC Regulation 2078/92 as part
of the CAP reforms
amber box: negotiating
classification used in GATT. Domestic support arrangements in
agriculture which were already being reduced at the time of negotiations
(1989-1992) were defined as 'amber box' measures. The criteria
for 'amber box' status are set out in Annex 2 of the GATT Agreement
on Agriculture
blue box: negotiating
classification used in GATT. Domestic support arrangements in
agriculture assisting the limiting of commodity consumption, production
and thus trade were defined as 'blue box' measures. The criteria
for 'blue box' status are set out in Article 6(5)(a) of the GATT
Agreement on Agriculture. Payments under the 'blue box' are not
subject to the GATT provisions on reducing domestic support to
agriculture
co-financing: a means
of financing EU policies using both national and EU monetary contributions
commodity regime: the
set of price structures and market regulations relating to the
production of a particular CAP commodity
conditionality: the attachment
of mandatory conditions to payments made to farmers; such conditions
may vary. Recent attention has focused on attaching environmental
conditions to direct payments ("environmental conditionality")
decoupling: removing the
linkage within agricultural policy between a subsidy or support
and the level of commodity production or commodity prices. Preliminary
moves towards a 'decoupled' CAP were made as part of the reforms
to the policy in 1992
degressive payments: payments
which are gradually reduced over time
direct (compensatory) payments:
a system of payments introduced to compensate farmers for reductions
in market price support initiated by the 1992 CAP reforms. These
payments are made directly to farmers rather than via market subsidisation.
In the COP (cereals, oilseeds and protein crops) sector, direct
payments are calculated on an area basis through the Arable Area
Payments Scheme (AAPS). In the livestock sector, direct payments
are calculated on a per animal ("headage") basis
EAGGF: European Agricultural
Guidance and Guarantee Fund. The EU structural Fund financing
operation of the CAP. Sometimes known by the French acronym FEOGA
ERDF: European Regional
Development Fund. One of the EU's four structural Funds
ESF: European Social Fund.
One of the EU's four structural Funds
extensification: the process
of decreasing the use of capital per unit of land, eg lower use
of fertilisers and crop protection chemicals per hectare, and
fewer animals per hectare
General Agreement on Tariffs and Trade (GATT):
institution with responsibility for overseeing international negotiations
promoting the liberalisation of global trade. GATT was dissolved
in 1992 and replaced by the WTO (q.v.), which was itself established
under GATT's provisions
green box: negotiating
classification used in GATT. Domestic support arrangements in
agriculture having no significant effect on levels of commodity
consumption, production and thus trade were defined as 'green
box' measures and were exempt from GATT's domestic support reduction
commitments. The criteria for 'green box' status are set out
in Annex 2, paragraph 6 of the GATT Agreement on Agriculture
Less Favoured Areas (LFAs):
areas deemed to be 'disadvantaged' or 'severely disadvantaged'
in terms of their agricultural productivity relative to other
regions of the EU. Usually LFAs are mountainous or upland areas
livestock quota: limits
on livestock numbers introduced as part of the 1992 CAP reforms
at farm, regional and national levels
livestock unit: a measurement
of grazing intensity used to equate different classes of livestock
low-input farming: farming
systems with low or negligible use of certain agricultural inputs
such as fertilisers and crop protection chemicals relative to
the area of farmed land
modulation: the concept
of varying the amount of support offered farmers under the CAP
on the basis of specific characteristics, for example farm size,
or number of livestock run on the farm
Objective 1: EU policy
designation providing support for rural regions where incomes
are less than 75 per cent of the EU average. Currently being reviewed
as part of the European Commission's Agenda 2000 proposals
Objective 2: EU policy
designation providing support for urban and rural regions with
particular structural difficulties. Currently being reviewed
as part of the European Commission's Agenda 2000 proposals
Objective 5b: EU policy
designation providing support for deprived rural areas. Currently
being reviewed as part of the European Commission's Agenda 2000
proposals
overstocking: the grazing
of pasture at high stocking densities (q.v.), causing a reduction
in sward quality
set-aside: the removal
of land from arable production. Introduced as a voluntary production
control measure in 1986, set-aside was, effectively, made compulsory
for the majority of farmers as part of the 1992 CAP reforms and
set initially at a rate of 15% of the total area farmed. Extra
land over and above this figure could be entered into set-aside
by farmers on a voluntary basis. Other permutations of set-aside
were introduced as part of the 1992 CAP reform package to ensure
the fulfilment of the reform's production reduction objectives.
Since 1992, mandatory rates of set-aside have been altered several
times by the EU Agriculture Council
stocking density: the
number of livestock units per forage hectare of land. Certain
livestock premium payments are subject to stocking density limits
structural policy: European
Union (EU) policy targeting socio-economic and social structures
within regions, for example amalgamation of farm holdings, training
and education
understocking: the grazing
of pasture at low or negligible stocking densities (q.v.), causing
a reduction in sward quality
World Trade Organisation
(WTO): institution with variety of responsibilities, including
the enforcement of agreements seeking to reduce domestic barriers
to global trade negotiated under the General Agreement on Tariffs
and Trade (GATT, q.v.)
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