One of the first aims of CAP was to increase food production so that the EU became more self-sufficient in foodstuffs.
There were introduced along side support policy to increase outputs. So, if there is a shortage of any product, CAP invested money on this product to increase amount of it. Farmers were paid for grow this product. But when there was sufficient amount of it the subsidies were removed. E.g. in 1993 there was a shortage of oil, so subsidies were placed on oil seed rape. It became very expensive. Farmers were paid up £445 per hectare to grow it. In 1995 there was sufficient amount of it, so the subsidies were removed.
Just as there can be a shortage of product, there can be a situation when we have too much of product, this is called overproduction.
The CAP introduces 2 further policies:
- Quotas – there were introduced to limit production. Farmer can produce only appointed amount of product. E.g. dairy farmer would be limited to a certain production of milk a day. If the farmer exceeds his quota, he would pay a fine. (Quotas were paid on a farm size).
- Set-aside - In 1992 farmers were ordered to leave their 20% of their land fallow, to plant trees or use for non-agricultural use for 5 years. In addition in 1995 farmers paid £253 per hectare for fallow, £140 per hectare for cereals, £445 per hectare for oil seed rape.
CAP introduced PRICE SUPPORT POLICY system to guarantee payment for farmers.
High target price – the CAP set a target price for products sold on the EU markets.
Intervention price – if the price fall more than 5% bellow the target price, the government buys the product to prevent the price falling further. This guarantee minimum price for the produce.
Low world price – the excess is sold on the market out a reduced prices. Usually to LEDC’s.
A policy guarantees farmers a good price for their crops.
Intensive farming damages the environment because people want to increase output and profits, but most of these things have very bad effect on the wildlife. Between 1945 and 1975 over 45% of Norfolk’s hedgerows disappeared to increase the size of fields. Hedgerows are very important wildlife habitats. Also they are very old, and without them English fields lose their charm.
A use of chemical fertilisers and pesticides is also blamed for polluting the land and water supplies. Many of chemicals which go into a river can cause eutrophication, a loss of oxygen. This may kill fish, and whole ecosystem.
Farmers can be heavily fined for pollution of watercourses.
Set aside can help wildlife arise again on the farming land. It would help ecosystem to develop. Animals will have more places to live. Farmers con use set aside land for non-agricultural business such as: carting or paint ball.
Conclusion: The Common Agricultural Policy (CAP) improving agricultural farming by introducing new policies. It is really important, because every year we need to look after fields more and more.
