Select Committee on Environment, Food and Rural Affairs Appendices to the Minutes of Evidence


Annex

THE MAIN COMPONENTS OF THE CAP FOLLOWING THE AGENDA 2000 REFORMS

  Pillar 1 (market/price support) measures include:

    —  Support regimes—such as guaranteed minimum market prices and import tariffs and export subsidies which benefit EU farmers when trading with countries outside the EU.

    —  Direct payments to compensate farmers for reductions in guaranteed prices.

    —  Controls to limit output—for example, production quotas and the compulsory "set aside" of arable land which must not be used to grow food crops.

  Pillar 2 (encouragement of sustainable environmental practices) measures include:

    —  Agri-environment schemes to promote environmental farming.

    —  Aid for farm investment and farm diversification.

    —  Grants for vocational training for farmers.

    —  Support for farm-related tourism activities.

HORIZONTAL MEASURES:

  Allow member states to "modulate" by linking environmental requirements to the subsidies paid to farmers. Currently up to 20 per cent of the Pillar 1 direct payments can be re-allocated to fund more environmentally-friendly practices.

REFERENCES

  1 The Organisation for Economic Co-operation and Development calculates a provisional Total Support Estimate per capita of 299 Euro for the year 2000. On 6/12/01, this converted to £187.

  2 Food Standards Agency consumer research, September 2001.

  3 Quantitative market research carried out by NOP on behalf of The Co-operative Group, March 2001.

  4 European Commission, Directorate-General for Agriculture, An agricultural sector for tomorrow's Europe, 1998.

  5 Soil Association, The Organic Food and Farming Report 2000.

  6 Department for Environment, Food and Rural Affairs, Agenda 2000 Reform Economic Impact, 2000.



 
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