Feeding Europe
60 years of common
agricultural policy
For generations, people in Europe and beyond have enjoyed a wide
variety of high-quality food. This did not happen by accident.
It was the EU’s common agricultural policy which, for the first
time, introduced rules for Member States that would support the
farming sector after years of devastating war and famine.
The policy, known as the CAP, has evolved over decades to respond
to a changing market, consumer demands and factors such as cli-
mate change and the need for sustainable development.
Sixty years since its birth, the CAP today supports an open sin-
gle market for EU agricultural food products, ensuring affordable
prices, maintaining some of the world’s highest safety and envi-
ronmental standards, and keeping rural communities vibrant.
The 1962 agreement
In the early days of 1962, after 140 hours of discussions, the min-
isters of the six founding countries of the European Communities
concluded an agreement giving legal effect to the first common
agricultural policy in Europe.
The policy’s original goals are included in the Treaty of Rome, and
remain at the heart of the CAP today:
■ increasing productivity and stabilising markets
■ ensuring the availability of food at reasonable prices
■ providing fair living standards to farmers
© Istock, RuudMorijn What is the common
agricultural policy today?
A secure supply of safe food,
even in the middle of a crisis
The CAP and its instruments are there to ensure food security for
consumers. The stable availability of food over many years has
enabled people to take the provision of food for granted.
Yet recent years – with the COVID-19 crisis and Russia's mili-
tary aggression against Ukraine – have created challenges for our
agri-food system, making the security of food supplies a real
concern again. When the pandemic hit EU countries, many super-
market shelves were nearly emptied initially amid fears that the
slowdown of the economy could lead to severe food shortages.
But the pandemic did not mean Europeans went short of food.
Measures taken by the EU and Member States within existing CAP
regulations, as well as in the transport sector, were key to ensur-
ing the continuity of food production and distribution. Rules
allowing seasonal workers to cross borders were simplified, al-
lowing their key contribution to EU agriculture to continue without
interruption.
In addition, a greater flexibility of the CAP rules meant that farm-
ers and rural development beneficiaries who were facing cash flow
problems received advances, increased state aid, and loans and
guarantees at favourable conditions. Exceptionally, unused funds
under rural development programmes were also made available
to provide temporary relief to those particularly affected.
To tackle possible crises, the EU
has adopted a contingency plan
to ensure food supply and food
security. In the event of a cri-
sis, a coordination mechanism is
put in place through which the
European Commission, Member
States and other actors such as
food producers can ensure that
food supply remains secure.
© Istock, ArtMarie Supporting the sector
and its growth
The farming sector faces some unique challenges. It is highly de-
pendent on the weather and the climate, and production requires
time and planning, resulting in a gap between consumer demand
and supply. Unpredictable demand patterns cause permanent mar-
ket instability, leading to volatile prices. These factors affect farmers’
revenues, which are around 40% lower than those in other sectors.
Public support for farmers is necessary to ensure a supply of
safe and affordable food. Through direct payments, the CAP
ensures that farmers can rely on a more stable income, weather-
ing the impact of fluctuating prices and demand. Since the early
2000s, farmers mainly receive payments according to the area
they farm and not its output.
Through the CAP, the EU also supports the development of the
farming sector. As older farmers are retiring, fewer and fewer young
people are choosing to start a career in farming. Only 11% of the
EU’s farm managers are under 40 (as of 2016). It is a challenge
to attract younger talent to the sector.
Since the reform of 1992, the CAP has included measures to
encourage younger generations to take up farming and
promote environmentally friendly farming. Since then, people in
rural areas have benefitted from increased and better focused
CAP support for the modernisation of agriculture, and the diversi-
fication of economic activity in the countryside.
Support can take the form of direct grants or loans, which can be
used to fund start-ups and kick off development projects. Economic
support for young and new farmers is intended to be complemen-
tary to the measures taken to make rural areas thrive: together,
they have the potential to create a virtuous circle and convince new
generations to settle and do business in Europe’s countryside.
"Thanks to EU funds, we have
been able to develop our
farm. The funds were also
an encouragement for us to
stay in the countryside".
Milena Chodnicka
farm owner, Poland
© Istock, Kemter Helping rural Europe
to thrive
In the 2000s, the EU enlarged and now has 27 Member States.
The farmed area increased considerably.
Efforts to empower local communities to im-
prove the competitiveness of farm holdings,
create jobs, and improve livelihoods were
intensified. Rural development became the
second ‘pillar’ of the CAP.
Amongst other benefits, funding for rural development provides sup-
port for farming in disadvantaged areas, helping to ensure that these
areas remain populated. It also contributes to making remote and
mountainous areas more liveable by providing support for in-
frastructure and services such as health, childcare, and broadband.
A key method to deliver on these objectives is LEADER. With this
method, people in the community are engaged in the design and
delivery of strategies, decision-making and resource allocation for
the development of their rural areas.
‘Local action groups’ are the vehicle of this innovative method.
Through these, people and local organisations channel their energy
and resources into the development of their territory and commu-
nity, allowing for a bottom-up community-driven approach to the
use of funds.
"The LEADER approach
benefits our local
area by providing
considerable financial
resources that allow the imple-
Xavier Sohet mentation of ambitious projects,
coordinator of the local which the municipalities would
action group Pays des Tiges
et Chavées, Belgium not be able to carry out,
on a range of topics".
© Adobe Stock, Lukas Gojda Creating an open market
for products
Establishing and regulating the common market has been at the
centre of the CAP since its inception. From the outset, market rules
based on price guarantees and state intervention were set for most
agricultural products.
As the CAP evolved, a single common market for all products was
created, moving away from a price support policy to market-orient-
ed agriculture.
Today, the single market offers European farmers access to
447 million customers in 27 countries, allowing them to distribute
447
their produce beyond national borders.
That is how Greek olives and olive oil
can be found on supermarket shelves
in Sweden, or Irish farmers can sell their
million EU citizens
meat in Italy.
EU farmers also export to countries outside the EU. On a global
level, EU agri-food products are sold and consumed by millions of
people all over the world, making the EU the top global exporter
of food. But the EU also imports food and agricultural commodi-
ties from other countries. In a market-oriented approach, where the
EU is committed to the multilateral trading system and expanding
its network of bilateral trade agreements, the EU is the third largest
food importer worldwide today.
Top world agri-food exporters
2020 (billion €)
200
150 184
100
136
50 77
0
EU-27 United States Brazil
© Istock, RossHelen Protecting Europe’s
know-how
The EU is a major exporter of agri-food products as a result of its
diverse and rich offering of local and regional high-quality foods,
the result of long traditions and know-how in agriculture.
The
S I EU’s
GNATI geographical indications
GRAPHIC
EO A
D O E
(PDO, PGI and TSG) recognise intellectual
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protecting them from imitations and
misuse. They are a useful marketing tool and also help consumers
to recognise quality products.
Around 3,500 wines, spirits and foods, ranging from olives to ham
and cheese, are today protected under EU law, shielded from
unlawful practices in the EU and worldwide.
Besides quality labels, the CAP helps to strengthen the role
of farmers in the supply chain through support to producer
organisations.
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GNATI EO A
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© istock, Dhoxax, Nes, peuceta, Ridofranz
© Adobe Stock, auremar Protecting Europe’s
know-how
In a market characterised by a large number of small farms and
fewer retailer groups, farmers often face a power imbalance in ne-
gotiations. To help smaller farms increase their market power when
defending their interests within the supply chain, the CAP supports
producer organisations and associations of producer organisations.
Taking the form of cooperatives or other such groups, producer
organisations help farmers by, for example, planning their
production, marketing their products, and providing
assistance on technical matters. Many such
organisations play a key role in promoting
geographical indications in their commu-
nities and beyond.
"The ‘protected
designation of
origin’ (PDO) mark
means products
are recognisable, closely linked
to their area of origin and
Marta Donadoni therefore unique."
production manager at
Latteria Sociale Valtellina,
Italy
There are around 3,400 recognised producer organizations
in the EU, half of which are operating in the fruit and vegetable
production sector.
© Istock, jchizhe
Organic farming
• Around 30 years ago was the first time
organic policies were harmonised in
Europe. Since then, the sector has seen
great development, with the launch of
the organic logo in 2010 being a key milestone.
• By 2019, 66% of agricultural land under organic farming was
granted CAP support and 7.8% of agricultural land was under
organic farming in the EU-28.
• By 2030, the Farm to Fork strategy aims
FARM TO to raise the percentage of land under organic
FORK farming to at least 25%.
STRATEGY
• To achieve this, the Commission has launched
25% the organic action plan, which consists of three
by 2030
main axes:
Axis 1: stimulate demand and ensure consumer trust.
Axis 2: stimulate conversion and reinforce the entire
value chain.
Axis 3: organics leading by example: improve the FINLAND
SWEDEN
contribution of organic farming to 20.4 FINLAND 13.5
SWEDEN
13.5
environmental sustainability 20.4 ESTONI
ESTONIA
22.3
DENMARK FINLAND
22.3 LATV
20.410.9 13.5
SWEDEN
IRELAND DENMARK 14.
1.6
LATVIA
IRELAND 10.9 ESTONIA 14.8 LITHUANIA
1.6 22.3 LITHUANIA 8.1
NETHERLANDS
8.1
3.7
DENMARK
NETHERLANDS LATVIA
IRELAND 10.9
3.7 14.8
1.6 BELGIUM LITHUANIA POLAND
POLAND
BELGIUM
GERMANYGERMANY 8.13.5 3.5
NETHERLANDS
3.7 6.9 6.9 7.7 7.7
LUX. LUX.
BELGIUM
4.4
GERMANY
4.4 CZECH REPUBLIC
CZECH REPUBLIC
15.2 15.2
POLAND SLOVAKIA SLOVAKIA
6.9 FRANCE 3.5 10.3
7.7
LUX.
7.7
FRANCE AUSTRIA
AUSTRIA
10.3
4.4 7.7 CZECH REPUBLIC
25.3 HUNGARY
15.2 SLOVAKIASLOVENIA 25.3 5.6 HUNGARY
ROMANIA
FRANCE
AUSTRIA
10.3
10.3 SLOVENIA 5.62.9 ROMA
PORTUGAL 7.7 25.3 HUNGARYCROATIA 6.910.3 2.
8.2
PORTUGAL SPAIN
SLOVENIA 5.6 6.9
ROMANIA
10.3 ITALY 2.9
CROATIA
8.2
BULGARIA
PORTUGAL
9.7
SPAIN 6.915.2 2.3 BUL
Joe Melody 9.7
CROATIA
8.2 ITALY
SPAIN
9.7 ITALY 15.2 BULGARIA 2
15.2 2.3
farm owner, Ireland GREECE
10.3
GREECE
MALTA
0.5
GREECE
10.3 10.3
"Biodiversity in our farm is very MALTA
0.5
MALTA
0.5 CYPRUS
important to us. We are very 5.0
lucky in that we have a river
bank along the river Shannon,
which is Ireland's largest river".
© Istock, jchizhe
The CAP from 2023
For 60 years, the CAP has helped to ensure that Europeans have
safe food to eat. Gradually, the EU’s most integrated policy has
shifted to a model supporting a barrier-free market for EU
products characterised by common standards and high quality. It
has shown that it can move with the times and adapt as needed.
2021 marked another milestone in the evo-
lution of the CAP with the adoption of the
reformed policy. From 2023, when the new
reform takes effect, the CAP will make fur-
ther progress in its long history, making it a
fairer, greener and more performance-based
CAP.
To respond to changing needs and challenges,
the 2023 – 2027 EU agricultural policy will:
• support 7 million beneficiaries across the EU
• provide high-quality food to 450 million Europeans
• have a budget of €387 billion, 1/3 of the total EU budget
• contribute to climate action with some 40% of its budget
© Adobe Stock, Nathaniel
40%
of the new CAP budget
will go to environmentally
respectful farming
© Istock, Rawpixel
The CAP from 2023
What is new in the common
agricultural policy?
More flexibility and strategic planning
Ten specific policy objectives have been defined at EU level but
each Member State is asked to design a national strategic
plan to outline how it intends to reach the EU goals for social,
environmental, and economic sustainability in agriculture and
rural areas by:
• analysing its needs and tools
• defining actions and targets
• outlining the specific interventions which will be available
to farmers
Better targeting of financial support
Income support will be distributed more fairly. Payments per farmer
might be reduced and capped as part of a more comprehensive
redistribution of support from larger to smaller farms.
Funds will be prioritised for:
• small farms
• young farmers
• active farmers
• women in farming
CAP payments will be linked to the respect of certain EU labour
standards and beneficiaries will be incentivised to improve work-
ing conditions on farms.
"For me as a young farmer in
Austria, especially in a moun-
tain area where we
operate on a very
small scale, subsidies
are very important".
Elisabeth Huber
farm owner, Austria
© Xavier Lejeune
© istock, fotogestoeber
The CAP from 2023
Focus on performance and results
Member States will plan their interventions based on a needs analysis
and will report on their performance based on the objectives of the
strategic plans.
Farmers will receive financial support on the condition
that they adopt practices beneficial for the climate and
the environment.
Greener farming practices
Through eco-schemes, specific payments will be
provided to farmers that adopt climate-sensitive and
nature-friendly practices, in line with the European
Green Deal objectives. Examples of these actions are:
• organic farming
• crop rotation
• carbon farming
• agro-ecology
Member States must use:
at least 25% of their CAP direct income support
budget for eco-schemes
35%
© istock, IoaBal
of their rural development
budget for actions that
benefit the climate and
environment
© Istock, deimagine
The CAP from 2023
Fostering knowledge, research and innovation
Advancing research, knowledge sharing and innovation will be
essential for securing a smart and sustainable agricultural sector.
The Commission has proposed to set aside €10 billion from the
Horizon Europe programme for projects relating to food, farming,
rural development and the bioeconomy.
The reformed CAP will benefit from this increased investment,
incorporating stronger agricultural knowledge and innovation
systems (AKIS) to boost the development of innovation
projects, disseminate their results, and encourage their use as
widely as possible. Farm Advisory Services will also be a key tool
to enhance sustainable production by encouraging the adop-
tion of precision and smart farming techniques.
"All the digitalisation, automation and herd
management in our cowshed means we can
control our costs and income; it makes work in
the cowshed less labour-intensive so we have
more time for ourselves and our
children. I think it’s worth it".
Kamil Chodnicki
farm owner, Poland
© Istock, PeopleImages
Exhibition composed and edited by the
European Commission, on the basis of a
webstory created by the Council of the
European Union
