A Bond Scheme for Common Agricultural Policy Reform by Alan Swinbank, Richard Tranter

By Alan Swinbank, Richard Tranter

Annotation. the typical Agricultural coverage (CAP) is at an deadlock. whereas it's stated that present regulations should not tenable, all fresh reform plans were condemned as unacceptable. despite the fact that, a 2bond scheme3, as a part of reform that will pay extra realization to societys aspirations for the surroundings and rural improvement, bargains a fashion ahead. This booklet demystifies the bond scheme idea and explores issues expressed via farmers and coverage makers. Written via economists, a political scientist and a working towards baby-kisser, it deals infrequent insights into ecu farm coverage.

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This would tend to ‘lock-in’ CAP support in the new Member States, as it had in EU-15, making future reform of the CAP more difficult, as investment decisions would have been taken on the expectation of a continuation of support (Daugbjerg and Swinbank, 2004). Indeed to some extent this had already happened, as a number 32 A Bond Scheme for CAP Reform of applicant states had increased their levels of farm support to align with the existing CAP. In the event, and after a long prevarication, in January 2002 the Commission (2002a) proposed that direct payments should be extended to the new Member States, but in a phased manner starting at 25% of the payment level in EU-15 in 2004, and rising to the full EU-15 payment level after 10 years.

Thus it is no surprise that Portugal has expressed the view that it is a Member State ‘severely handicapped by the imbalance in EAGGF Guarantee support’ (as quoted in Agra Europe, 2002e). The system of direct aids has perpetuated not only the distribution of support between Member States, but also that between individual claimants. org) details - by recipient - of all subsidy payments made between 1996 and 2000, revealing that 20% of recipients 20 A Bond Scheme for CAP Reform received 84% of all subsidies (Ayer and Swinbank, 2003).

Section Garantie, annual. However reconciliation of data may be imprecise. 2002: budget rather than expenditure data. ‘Storage and Other’ is negative in some years Cross-compliance and modulation One potentially important change introduced by Agenda 2000 was the requirement that ‘with a view to better integrating the environment into the common market organisations, Member States should apply appropriate environmental measures in relation to agricultural land and agricultural production subject to direct payments’.

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