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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