Agriculture Around The World Questions Medium
The main agricultural subsidies in the European Union (EU) are the Common Agricultural Policy (CAP) payments. The CAP is a system of financial support and regulations aimed at ensuring a stable income for farmers, promoting sustainable agriculture, and ensuring food security within the EU.
Under the CAP, there are two main types of subsidies: direct payments and rural development funds. Direct payments, also known as Pillar 1 payments, are provided to farmers based on the size of their agricultural land and historical production levels. These payments aim to support farmers' income and stabilize agricultural markets. They are further divided into two categories: basic payments and additional payments for specific sectors or practices, such as organic farming or young farmers.
Rural development funds, also known as Pillar 2 payments, are aimed at promoting sustainable agriculture, rural diversification, and environmental protection. These funds support various initiatives such as agri-environmental schemes, investment in rural infrastructure, and support for rural businesses. They aim to enhance the competitiveness and sustainability of European agriculture while addressing environmental and climate challenges.
Additionally, the EU provides subsidies for specific agricultural sectors, such as dairy, sugar, and tobacco, to ensure their viability and competitiveness in the global market. These subsidies may include production quotas, price support mechanisms, and export subsidies.
It is important to note that the EU has been reforming its agricultural subsidy system to align it with broader policy objectives, such as environmental protection, climate change mitigation, and rural development. The latest reform, known as the CAP 2021-2027, aims to further enhance the sustainability and resilience of European agriculture while ensuring a fair income for farmers.