Common Agricultural Policy
Definition: Common Agricultural Policy
Common Agricultural Policy: Common Agricultural Policy noun a set of regulations and mechanisms agreed between members of the European Union to control the supply, marketing, and pricing of farm produce. Abbr CAP. COMMENT: The European Union has set up a common system of agricultural price supports and grants. The system attempts to encourage stable market conditions for agricultural produce, to ensure a fair return for farmers and reasonable market prices for the consumer, and finally to increase yields and productivity on farms in the Union. A system of common prices for the main farm products has been established with intervention buying as the main means of market support. The first major reforms in 30 years were carried out in 1992 and included arable set-aside, suckler cow quotas, ewe quotas, price reductions on oilseeds, peas, beans, cereals, and beet. The second major CAP reform was in 2003 with the introduction of the Single Farm Payment Scheme (SFPS), which brought together individual subsidy schemes into a single payment calculated on the land area used. Understanding the Common Agricultural Policy helps farmers navigate subsidies and market regulations.
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