Feeding Europe
60 years of common agricultural policy
People in Europe and beyond have for generations 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 which 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 climate change and the need for sustainable development.
Sixty years since its birth, the CAP today supports an open single market for EU agricultural food products, ensuring affordable prices, maintaining some of the world’s highest safety and environmental standards, and keeping rural communities vibrant.
The 1962 agreement
In the early days of 1962, after 140 hours of discussions, the ministers 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
What is the common agricultural policy today?
A secure supply of safe food, even in the middle of a crisis
The stable availability of food over many years has enabled people to take the provision of food for granted.
Yet the COVID-19 crisis made the security of food supplies a real concern again. When the pandemic hit EU countries, many supermarket shelves were nearly emptied 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, and also in the transport sector, were key to ensuring the continuity of food production and distribution. Rules allowing seasonal workers to cross borders were simplified, allowing their key contribution to EU agriculture to continue without interruption.
A secure supply of safe food, even in the middle of a crisis
The stable availability of food over many years has enabled people to take the provision of food for granted.
Yet the COVID-19 crisis made the security of food supplies a real concern again. When the pandemic hit EU countries, many supermarket shelves were nearly emptied 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, and also in the transport sector, were key to ensuring the continuity of food production and distribution. Rules allowing seasonal workers to cross borders were simplified, allowing their key contribution to EU agriculture to continue without interruption.
In addition, a greater flexibility of the CAP rules meant that farmers 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.
In addition, in order to tackle possible crises, the EU has adopted a contingency plan to ensure food supply and food security. In the event of a crisis, 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.
The Russian military aggression against Ukraine is once again putting the EU’s ability to secure food to the test. Russia’s aggression has aggravated a global food crisis which is putting millions of people at risk of famine.
Thanks to the CAP, there is no risk of food shortage in the EU. The EU contingency plan and the solid support structure guaranteed by the CAP are the EU’s tools to withstand the fallout from the war in the agri-food sector. The EU is working with its international partners to ensure food availability in the countries most affected by the food crisis.
In addition, a greater flexibility of the CAP rules meant that farmers 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.
In addition, in order to tackle possible crises, the EU has adopted a contingency plan to ensure food supply and food security. In the event of a crisis, 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.
The Russian military aggression against Ukraine is once again putting the EU’s ability to secure food to the test. Russia’s aggression has aggravated a global food crisis which is putting millions of people at risk of famine.
Thanks to the CAP, there is no risk of food shortage in the EU. The EU contingency plan and the solid support structure guaranteed by the CAP are the EU’s tools to withstand the fallout from the war in the agri-food sector. The EU is working with its international partners to ensure food availability in the countries most affected by the food crisis.
Supporting the sector and its growth
The farming sector faces some unique challenges. It is highly dependent 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 market instability, leading to volatile prices. These factors affect farmers’ revenues, which are around 40% lower than in other sectors.
Public support for farmers is necessary to ensure qualitative and affordable food. Through direct payments, the CAP ensures that farmers can rely on a more stable income, weathering the impact of fluctuating prices and demand. Since the early 2000s, farmers mainly receive payments according to the area that they farm, and not its output.
Dzięki środkom unijnym mieliśmy możliwość rozwoju swojego gospodarstwa. Zachęciły również nas te środki do pozostania na wsi. Dało nam też to wizję do rozwoju i pozwoliło realizować duże inwestycje, na które sami byśmy sobie nie pozwolili.
Milena Chodnicka, farm owner, Poland
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. They also gave us a vision for how to develop, and allowed us to make big investments that we couldn’t have managed on our own.
Milena Chodnicka, farm owner, Poland
Supporting the sector and its growth
The farming sector faces some unique challenges. It is highly dependent 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 market instability, leading to volatile prices. These factors affect farmers’ revenues, which are around 40% lower than in other sectors.
Public support for farmers is necessary to ensure qualitative and affordable food. Through direct payments, the CAP ensures that farmers can rely on a more stable income, weathering the impact of fluctuating prices and demand. Since the early 2000s, farmers mainly receive payments according to the area that they farm, and not its output.
Dzięki środkom unijnym mieliśmy możliwość rozwoju swojego gospodarstwa. Zachęciły również nas te środki do pozostania na wsi. Dało nam też to wizję do rozwoju i pozwoliło realizować duże inwestycje, na które sami byśmy sobie nie pozwolili.
Milena Chodnicki, owner of a dairy farm, Poland
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. They also gave us a vision for how to develop, and allowed us to make big investments that we couldn’t have managed on our own.
Milena Chodnicki, owner of a dairy farm, Poland
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 (2016). It is a challenge to attract new blood to the sector.
Since the reforms in 2013, the CAP has included measures to encourage younger generations to enter the agri-food sector and take part in the development of rural areas.
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 to young and new farmers is intended to be complementary 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.
Für mich als Junglandwirtin in Österreich, vor allem im Berggebiet, wo wir sehr kleinstrukturiert sind, ist es sehr wichtig, Fördermittel zu erhalten. Es ist eine Erleichterung und Absicherung für mich, dass ich wirtschaften, meinen Betrieb aufrechterhalten und auch weiterentwickeln kann. So habe ich Sicherheiten, die es mir ermöglichen, mein Daheim zu sichern und auch für zukünftige Generationen zu übergeben.
Elisabeth Huber, farm owner, Austria
@elisabeth.huber
For me as a young farmer in Austria, especially in a mountain area, where we operate on
a very small scale, subsidies are very important. The fact that I can work, keep my
business running and even watch it grow is a source of relief and security to me. This way
I have safeguards that enable me to protect my home and pass it on to future generations.
Elisabeth Huber, farm owner, Austria
@elisabeth.huber
Helping rural Europe to thrive
In parallel with the eastward enlargement of the EU in the early 2000s, a new ‘pillar’ of the CAP was introduced which would contribute to the livelihood of communities in rural and mountainous areas.
Helping rural Europe to thrive
In parallel with the eastward enlargement of the EU in the early 2000s, a new ‘pillar’ of the CAP was introduced which would contribute to the livelihood of communities in rural and mountainous areas.
Amongst other benefits, funding for rural development provides support 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 infrastructure 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, in decision-making and in 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 community, allowing for a bottom-up community-driven approach to the use of funds.
L'approche LEADER profite à notre territoire par l'apport de moyens financiers conséquents et qui permettent de mettre en œuvre des projets ambitieux sur le territoire, que les communes ne pourraient pas porter, et ce sur différentes thématiques. Au-delà de ça, l'approche LEADER renforce également les dynamiques au sein de ce territoire, les synergies entre les acteurs locaux, les liens entre les élus, les agents communaux, et même les associations locales entre elles. Ça crée vraiment des lieux de rencontre et ça renforce les liens qu'il y a entre toutes les personnes qui habitent le territoire.
Xavier Sohet, coordinator of the local action group Pays des Tiges et Chavées, Belgium
The LEADER approach benefits our local area by providing considerable financial resources that allow the implementation of ambitious projects which the municipalities would not be able to carry out, on a range of topics. Beyond that, the LEADER approach strengthens the dynamics within local areas, the synergies between local actors, and the links between elected representatives and municipal officials, and even between local associations themselves. It really brings people together and that strengthens the links between all the people living in the local area.
Xavier Sohet, coordinator of the local action group Pays des Tiges et Chavées, Belgium
Amongst other benefits, funding for rural development provides support 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 infrastructure 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, in decision-making and in 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 community, allowing for a bottom-up community-driven approach to the use of funds.
L'approche LEADER profite à notre territoire par l'apport de moyens financiers conséquents et qui permettent de mettre en œuvre des projets ambitieux sur le territoire, que les communes ne pourraient pas porter, et ce sur différentes thématiques. Au-delà de ça, l'approche LEADER renforce également les dynamiques au sein de ce territoire, les synergies entre les acteurs locaux, les liens entre les élus, les agents communaux, et même les associations locales entre elles. Ça crée vraiment des lieux de rencontre et ça renforce les liens qu'il y a entre toutes les personnes qui habitent le territoire.
Xavier Sohet, coordinator of the local action group Pays des Tiges et Chavées, Belgium
The LEADER approach benefits our local area by providing considerable financial resources that allow the implementation of ambitious projects which the municipalities would not be able to carry out, on a range of topics. Beyond that, the LEADER approach strengthens the dynamics within local areas, the synergies between local actors, and the links between elected representatives and municipal officials, and even between local associations themselves. It really brings people together and that strengthens the links between all the people living in the local area.
Xavier Sohet, coordinator of the local action group Pays des Tiges et Chavées, Belgium
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 each agricultural product.
As the CAP evolved, a single common market for all products was created where intervention and price support no longer applied.
Today, the single market offers European farmers access to 447 million customers in 27 countries, allowing them to distribute their produce beyond national borders. That is how Greek olives and olive oil can be found on supermarket shelves in Sweden, or an Irish farmer can sell their meat in Italy.
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 each agricultural product.
As the CAP evolved, a single common market for all products was created where intervention and price support no longer applied.
Today, the single market offers European farmers access to 447 million customers in 27 countries, allowing them to distribute their produce beyond national borders. That is how Greek olives and olive oil can be found on supermarket shelves in Sweden, or an Irish farmer can sell their 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 offers a market to non-EU importers. In a market-oriented approach, where trade barriers and import taxes are features of the past, today the EU is the third largest food importer worldwide.
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 offers a market to non-EU importers. In a market-oriented approach, where trade barriers and import taxes are features of the past, today the EU is the third largest food importer worldwide.
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 EU’s geographical indications (PDO, PGI and GI) recognise intellectual property rights for certain products, protecting them from imitations and misuse. They are a useful marketing tool and also help consumers 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.
Il marchio di denominazione d’origine protetta (DOP) rende dei prodotti riconoscibili, strettamente legati al territorio di origine e quindi unici. Il fatto di avere in provincia di Sondrio due prodotti a marchio DOP sicuramente rende le nostre produzioni fortemente legate appunto al territorio e ci permette di avere uno sbocco commerciale sul mercato molto importante, perché il consumatore può riconoscere nei nostri prodotti i valori che il territorio porta con sé.
Marta Donadoni, production manager at Latteria Sociale Valtellina, Italy
The ‘protected designation of origin’ (PDO) mark means products are recognisable, closely linked to their area of origin and therefore unique. Having two PDO products in the province of Sondrio certainly ensures our products are strongly linked to the area and offers us a very significant commercial outlet on the market, because consumers can see that our products reflect the values of the area.
Marta Donadoni, production manager at Latteria Sociale Valtellina, Italy
There are around 3,400 recognised producer organisations in the EU, half of which are operating in the fruit and vegetable production sector.
Besides quality labels, the CAP helps to strengthen the role of farmers in the supply chain through support to producer organisations.
In a market characterised by a large number of small farms and fewer retailer groups, farmers often face a power imbalance in price negotiations. To help smaller farms increase their negotiating power when defending their interests within the supply chain, the CAP supports the affiliation of farms into producer organisations and associations of producer organisations.
Taking the form of cooperatives or other such groups, producer organisations help farmers increase their capabilities by providing assistance on marketing and technical matters. Many such organisations play a key role in promoting geographical indications in their community and beyond.
Besides quality labels, the CAP helps to strengthen the role of farmers in the supply chain through support to producer organisations.
In a market characterised by a large number of small farms and fewer retailer groups, farmers often face a power imbalance in price negotiations. To help smaller farms increase their negotiating power when defending their interests within the supply chain, the CAP supports the affiliation of farms into producer organisations and associations of producer organisations.
Taking the form of cooperatives or other such groups, producer organisations help farmers increase their capabilities by providing assistance on marketing and technical matters. Many such organisations play a key role in promoting geographical indications in their community and beyond.
There are around 3,400 recognised producer organizations in the EU, half of which are operating in the fruit and vegetable production sector.
A green and digital future
Protecting the environment and safeguarding the Earth’s resources are essential for sustaining food production, as well as for guaranteeing our quality of life.
Support to farmers through direct payments ensures income stability, and also remunerates environmentally-friendly farming and public services which are not normally paid for by the markets, such as taking care of the countryside, preserving landscapes, protecting biodiversity, and helping to mitigate the impacts of climate change.
The new CAP, which comes into force in 2023, will step up these efforts, and we can look forward to an increased contribution of EU agriculture to the environment and climate. New schemes for the environment and climate - so-called ‘eco-schemes’ - will be funded with 25% of each member state’s allocation for direct payment.
Green practices which farmers can adopt include crop rotation or diversification, the maintenance of ecologically rich landscapes and a minimum amount of permanent grassland, as well as organic farming and carbon farming.
Biodiversity in our farm is very important to us. We are very lucky in that we have a river bank along the river Shannon, which is Ireland's largest river, and the river bank runs for 3 km and we stop the cattle off the land in the autumn and they are allowed to it until mid-spring. This gives the land the opportunity to have a cover of grass to allow for the nesting of wild geese and swans that migrate to Ireland for the winter. And we could see that our cattle (our ruminants) had a crucial role to play in pruning down that grass during the summer and spring months and keeping it in a way that was at the right height for wild geese and swans to nest and continue for that habitat to flourish. So we saw our farming as the answer to biodiversity questions, rather than an enemy of biodiversity.
Joe Melody, farm owner, Ireland, @jfmelody
The new CAP, which comes into force in 2023, will step up these efforts, and we can look forward to an increased contribution of EU agriculture to the environment and climate. New schemes for the environment and climate - so-called ‘eco-schemes’ - will be funded with 25% of each member state’s allocation for direct payment.
Green practices which farmers can adopt include crop rotation or diversification, the maintenance of ecologically rich landscapes and a minimum amount of permanent grassland, as well as organic farming.
Biodiversity in our farm is very important to us. We are very lucky in that we have a river bank along the river Shannon, which is Ireland's largest river, and the river bank runs for 3 km and we stop the cattle off the land in the autumn and they are allowed to it until mid-spring. This gives the land the opportunity to have a cover of grass to allow for the nesting of wild geese and swans that migrate to Ireland for the winter. And we could see that our cattle (our ruminants) had a crucial role to play in pruning down that grass during the summer and spring months and keeping it in a way that was at the right height for wild geese and swans to nest and continue for that habitat to flourish. So we saw our farming as the answer to biodiversity questions, rather than an enemy of biodiversity.
Joe Melody, farm owner, Ireland, @jfmelody
Digitisation, technological innovation and research can also help to respond to the challenges faced by farmers on issues such as food sustainability, nutrition security, animal welfare, energy efficiency and many more. The CAP supports the modernisation of farming techniques in order to make the sector more effective, more competitive and more environmentally friendly.
The budget for the modernisation of farming, which has grown consistently over the years, is also used to help connect farmers with researchers and universities to fully unlock knowledge sharing.
Examples of innovative farming include precision and smart farming, sustainable irrigation systems, and tools for the early detection of pests.
Cała ta cyfryzacja, system zarządzania stadem, automatyka w naszej oborze pozwala nam kontrolować nasze koszty, ale też i przychody, pozwala nam zmniejszyć pracochłonność w oborze, przez co mamy więcej czasu dla siebie i dla naszych dzieci. Myślę, że warto. Jeżeli chcemy się rozwijać, jeżeli chcemy być rolnikami, to myślę, że warto inwestować w innowacje i w tym kierunku iść.
Kamil Chodnicki, farm owner, Poland
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. If we want to grow, if we want to keep farming, it is worth investing in innovation and going in this direction.
Kamil Chodnicki, farm owner, Poland
Future outlook
For sixty years, the EU’s common agricultural policy has helped Europe to ensure that Europeans have safe food to eat. It has fulfilled its role as a partnership between agriculture and society, and between Europe and its farmers.
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 evolution of the CAP with the adoption of the reformed policy. From 2023, when the new reform takes effect, the CAP will make further progress in its long history, making it:
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