Agriculture and

Rural Development
Jhe Common Agricultural lolicy
A partnership between
lurope and larmers

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Preface
Jhe Common Agricultural lolicy is the link between an increasingly urbanised world
and an increasingly strategic farming sector. Jhis is why l have proposed a new
partnership between lurope and farmers based on a Common Agricultural lolicy
renewed as from 20l3.
Jhis new partnership ts into the historical perspective of what is a toplevel lu policy,
one which recently celebrated its nieth anniversary and is described over the next
few pages. lt also reects the desire to reshape the contract of condence between
luropean citizens and their farming sector based on the Common Agricultural lolicy.
larming is closely associated with the challenges facing society, rst and foremost
among these of course being the food challenge. Jhere is also the challenge posed by
natural resources. these must be used with respect and in a responsible manner with
the needs of future generations in mind. lastly, there is the challenge posed by rural
areas and the need to preserve the continuity of the farming sector in these areas, a
need which is vital to our rural economies, our roots and our heritage. lurope needs its
farmers. larmers need luropes support.
Support will take the form of better targeted income support channelled towards
active farmers and ad|usted in an ob|ective manner to meet the needs of each farming
sector, especially the most vulnerable ones.
lt will involve the use of instruments to increase the economic and environmental
competitiveness of farming. we need incentives to help farmers to adopt sustainable
farming methods. we also need genuine modern, ecient and responsive safety nets
to help us overcome the more and more serious and increasingly frequent crises which
we are facing.
Jhis support also reects the desire to bring life back to the countryside by providing
increased resources to help young people set up in farming, with additional resources
for research, innovation and the transfer of skills, and by investing in private and public
infrastructure.
0ver the next few years it is essential to lay the foundations for a strong farming
industry which can meet the challenges of climate change and international
competition while fullling peoples needs. Jhe Common Agricultural lolicy is about our
food and the future of more than half the land area of the lu.
Dacian Ciolo
European Commissioner for Agriculture and Rural Development
Jhe lu has 500 million consumers and they all need a reliable supply
of healthy and nutritious food at an aordable price. Jhe economic
environment is set to remain uncertain and unpredictable. Horeover, there
are many current and future challenges including global competition,
economic and nancial crises, climate change and rising costs of inputs
such as fuel and fertiliser.
Jo meet these challenges the lu has created and implemented the
common agricultural policy.
lts purpose is to set the conditions allowing farmers to full their multiple
functions in society the rst of which is to produce food.
Jhanks to the CAl, luropes citizens en|oy food security. we can be sure
that our farmers produce the food we need.
Jhey provide an impressive variety of abundant, aordable, safe and
goodquality products. Jhe lu is known throughout the world for its food
and culinary traditions. 0ue to its exceptional agricultural resources the
lu could and should play a role in ensuring food security of the world at large.
The CAP is
about our food
launched in 1962, the Common Agricultural lolicy (CAl)
is a partnership between agriculture and society, between
lurope and its farmers. lts main aims are.
Jo improve agricultural productivity, so that consumers
have a stable supply of aordable food.
Jo ensure that lu farmers can make a reasonable living.

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low, ny years later, the lu has to address more challenges.
lood security at the global level, food production will have to double in
order to feed a world population of 9 billion people in 2050,
Climate change and sustainable management of natural resources,
looking aner the countryside across the lu and keeping the rural
economy alive.
larming is not |ust about food. lt is about rural communities and the
people who live in them. lt is about our countryside and its precious
natural resources.
ln all lu member states, farmers keep the countryside alive and maintain
the rural way of life. lf there were no farms or farmers, our hamlets,
villages and market towns would be profoundly aected for the worse.
Hany |obs in the countryside are linked to farming. larmers need
machinery, buildings, fuel, fertilisers and healthcare for their animals.
Hany people have |obs in these upstream sectors. 0ther people are busy
in downstream operations such as preparing, processing and packaging
food. Still others are involved in food storage, transport and retailing.
All in all, farming and food production are essential elements of our
economy and society. with its 27 member states, the lu has some
l4 million farmers with a further 4 million people working in the food
sector. Jhe farming and food sectors together provide 7 % of all |obs and
generate 6 % of luropean gross domestic product.
The CAP is
about our
countryside

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Jhe CAl is a common policy for all the Hember
states of the luropean union.
lt is managed and funded at luropean level from
the resources of the lu annual budget.
0ur countryside is not in its original
natural state. lt has been shaped by
farming over the centuries. larming
has created our diverse environment
and its varied landscapes. 0ur
countryside provides the habitat
for a great diversity of fauna and
ora. Jhis biodiversity is critical for
the sustainable development of the
countryside.
larmers manage the countryside
for the benet of us all. Jhey
supply public goods the most
important of which is the good care
and maintenance of our soils, our
landscapes and our biodiversity. Jhe
market does not pay for these public
goods. Jo remunerate farmers for
this service to society as a whole,
the lu provides farmers with income
support.
larmers can be adversely aected
by climate change. Jhe CAl provides
them with nancial assistance to
ad|ust their farming methods and
systems to cope with the eects of a
changing climate.
larmers are the rst to realise
the need to care for our natural
resources aner all farmers rely
upon them for their daytoday
living. Jo avoid negative sideeects
of some farming practices, the
lu provides incentives to farmers
to work in a sustainable and
environmentallyfriendly manner.
ln eect, farmers have a double
challenge. to produce food whilst
simultaneously protecting nature
and safeguarding biodiversity.
lnvironmentally sustainable farming,
which uses natural resources
prudently, is essential for our food
production and for our quality of
life today, tomorrow and for future
generations.
The CAP is
about our
environment

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9 l0 l2 l2 l5 25 27
500
200
6.62
ll.7l
0.68
l962
Jhe common agricultural policy
is born. Jhe CAl is foreseen
as a common policy, with the
ob|ectives to provide aordable
food for lu citizens and a fair
standard of living for farmers.
European
farm policy
down the years
l984
larms become so productive
that they grow more food than
needed. Jhe surpluses are stored
and lead to food mountains.
Several measures are introduced
to bring production levels closer
to what the market needs.
lxport refunds
0ther market measures
Coupled support
0ecoupled support
Rural development
(datas in billion euros)
Agriculture in percentage of lu
total budget
lu population in million
0.80
0.95
0.06

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9 l0 l2 l2 l5 25 27
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
9.47
l5.9l
5.9
2.88
3.05
5.33
32.25
l.45
l0.09
3.l6
0.l8
|
3.35
36.83
l2.30
2003
Jhe CAl provides income
support. A new CAl reform cuts
the link between subsidies and
production. larmers now receive
an income support payment, on
condition that they look aner the
farmland and full environmental,
animal welfare and food safety
standards.
20ll
A new CAl reform proposal seeks
to strengthen the competitiveness
of the agricultural sector, promote
innovation, combat climate
change and support |obs and
growth in rural areas.
l992
Jhe CAl shins from market
support to producer support.
lrice support is scaled down, and
replaced with direct aid payments
to farmers. Jhey are encouraged
to be more environmentally
friendly. Jhe reform coincides
with the l992 Rio larth Summit
which launches the principle of
sustainable development.

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Jhe Common Agricultural lolicy
A partnership between
lurope and larmers

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The CAP is about our farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Thanks to the CAP farmers produce what consumers want . . . . . . . . . . . . . . . . . . . . . 7
Farmers act as managers of the countryside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The rural economy and way of life depend on farming . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
The CAP drives productivity and innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l0
Modernisation is another CAP priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ll
Why farmers dont always get a fair deal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l2
Quality food a key to success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l3
The EU opens its market for developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l4
Europe is a major exporter of quality food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l5
The CAP towards 2020: meeting the challenges ahead . . . . . . . . . . . . . . . . . . . . . . . . . l6
5
larmers are a very important economic player in rural areas which the
lu cannot aord to lose. lundamental, instinctive farming skills are
not learned from the pages of a book, but are passed down from one
generation to the next.
lowever many young people no longer see farming as an attractive
profession, with the result that there are fewer farmers. ln the l960s,
the original six lu countries had six million farmers, but since then the
number has more than halved.
Jhis is why the CAl helps young people to get started in farming with
funds to buy land, machinery and equipment. lt also provides grants to
train both new entrants and established farmers in the latest technical
production methods.
lncouraging young farmers and ensuring continuity from one generation
to the next is a real challenge for rural development in the lu.
ln some parts of lurope, farming is particularly dicult as in hilly,
mountainous and|or remote areas. lt is important to keep communities
alive in these regions. Jhe CAl provides funds to ensure that rural
communities in vulnerable areas remain in good economic health and do
not gradually disappear.
The CAP
is about our
farmers
With 10 new member states
joining in 2004 and two more in 2007,
the number of EU farmers nearly
doubled to around 14 million.
RllAJlvl SlJuAJl0l 0l lARH
llC0Hl C0HlARl0 J0
l0lAuRlCulJuRAl llC0Hl
NUMBER OF
FARMERS:
Jhe gures are the lu average of entrepreneurial income
in agriculture per nonsalaried annual work unit as % of
average wages in total economy per fulltime equivalent,
gures are calculated by Commission services on the basis
of lurostat data.
million
40
%
l00
%

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lu citizens are the ultimate beneciaries of the CAl. Jhere is always plenty of food in our
shops and supermarkets at prices which are generally aordable. ln most lu countries
today, the average family spends around l5 % of its monthly income on food. Jhe
proportion is half what it was in l962.
we en|oy a secure supply of highquality food from our farmers. lurope is considered
as a world leader in sectors like cereals, dairy products, meats, olive oil, wines and spirit.
lurthermore, we can easily nd out how and where our food was produced because the
lus labelling and traceability rules give consumers the information they need to make
an informed choice when buying their food.
Hany lu consumers prefer local or regional products where these are available.
Jraditional specialities are more and more in demand. As a result, farmers are
increasingly selling directly to consumers at farmers markets and are processing their
own products to add local value.
Thanks to the CAP
farmers produce what
consumers want
llRlS wlAJ 0uR lARHlRS
lR00uCl lACl YlAR
(AvlRAul l0R 2008l0)
Cereals
300 million t
Sugar
16 million t
Oilseeds
21 million t
Olive oil
2 million t
Apples
10 million t
Pears
3 million t
Citrus fruit
10 million t
Wine
170 million
hectolitres
Beef and veal
8 million t
Pigmeat
20 million t
Poultrymeat
12 million t
Eggs
7 million t
Milk
140 million t

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Around half the lus land is farmed. Jhis makes farming very important
indeed for our natural environment. larming has contributed over the
centuries to creating and maintaining a variety of valuable seminatural
habitats. Joday, these shape the many landscapes throughout the lu and
are home to a rich variety of wildlife. larming and nature inuence each
other. Jhanks to the successive reforms of the CAl, our farming methods
are becoming more environmentallyfriendly.
Jodays farmers therefore have two roles producing our food and
managing the countryside. ln the second of these they provide public
goods. Jhe whole of society present and future benets from a
countryside that is carefully managed and well looked aner. lt is only fair
that farmers are rewarded by the CAl for providing us with this valuable
public good.
lncome support payments from the CAl are increasingly used by farmers
to adopt environmentally sustainable farming methods. Jhis enables
them, for example, to reduce the amount of chemical fertiliser or pesticide
that they apply to their crops. lt also enables them to reduce stocking
densities the number of farm animals per hectare of land. 0ther
adaptations include leaving eld boundaries uncultivated, creating ponds
or other landscape features and planting trees and hedges. Jhese are
aspects of farming which go beyond what are usually considered to be
conventional farming methods and good farming practices.
ln addition, the CAl promotes agricultural practices such as maintaining
permanent grassland and safeguarding the scenic value of the landscape.
lrotecting biodiversity and wildlife habitats, managing water resources
and dealing with climate change are other priorities that farmers are
required to respect.
ln this regard, the lus latura 2000 programme is relevant. Jhis is a
network of some 25 000 sites covering about one nh of the territory
of the lu and is aimed at protecting luropes biodiversity. Jhe sites are
not fencedo protected areas but are open and are onen dependent
on sustainable human activities and landuse that have shaped and
maintained them over the years. Hany sites are on farmland and the
farmers undertake to manage the land in a specic manner so that the
biodiversity is maintained.
Farmers act as
managers of the
countryside

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larming is the principal economic activity in most rural areas of the
lu. lowever, many farmers carry out additional activities, such as food
processing and providing accommodation for tourists. Jhis diversication
of the rural economy is a source of strength which the lu supports and
encourages through its rural development programmes.
About half the population of the lu lives in rural areas. without farming
there would be little to keep many communities alive and hold them
together. lf farming were to disappear, in many areas there would be a
problem of land abandonment.
Jhis is why the CAl gives farmers nancial assistance to ensure that they
continue working the land and to create additional |obs through landscape
preservation or cultural heritage pro|ects and many other tasks directly or
indirectly associated with farming and the rural economy.
Jhis helps prevent rural depopulation in the face of few |ob opportunities
and high unemployment. lublic services such as schools and healthcare
amenities are preserved and improved, giving people a good reason to
remain in the countryside and bring up their children there.
The rural economy and way of life
depend on farming
Jhe dynamism of small family farms will have
to be reinforced. Hany farmers are over the
age of 55 and will retire from active farming
at some point in the future. Jhe lu recognises
that the age structure of farmers has become
a matter of concern. lelping young farmers get
started is a policy must if luropes rural areas
are successfully to meet the many challenges
that face them.
lARHlRS ARl 8lC0Hllu 0l0lR
Source. luR0SJAJ larm Structure Survey, data apply to the year 2007.
35
3544
4554
65 +
5564

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7
6
5
4
3
l962
l980
l990
2000 2008
Jhe CAl helps farmers to be more productive
and to improve their technical skills.
ln its early years, the CAl encouraged farmers
to use modern machinery and new techniques,
including chemical fertilisers and plant
protection products. Jhese were necessary
because the priority at that time was to grow
more food for the population.
The CAP drives
productivity and
innovation
Jhe policy was very eective. lroductivity greatly increased. Crop yields
rose dramatically but have been stable since 2000. ln the years to
come, research and innovation will be crucial for farmers to produce
more from less.
wllAJ Ylll0S ll Jll 0RlullAl
SlX HlH8lR SJAJlS (J|lA)
Source. Agriculture in the luropean union. statistical and economic information, an annual publication of the
luropean Commission, 0irectorateueneral for Agriculture and Rural 0evelopment, various years.
ln the face of the food surpluses which resulted, the emphasis has
changed. low the CAl helps farmers to.
larm in a manner that reduces emissions of greenhouse gases,
use ecofriendly farming techniques,
Heet public health, environmental and animal welfare standards,
lroduce and market the food specialities of their region,
Hake more productive use of forests and woodland,
0evelop new uses for farm products in sectors like cosmetics,
medicine and handicrans.
lu research funds are devoted to developing new farming systems so
that farmers can respond to the many challenges that lie ahead not
least those of a changing climate and growing pressure on natural
resources. ln future, our farmers will have to produce more with less.
Jhis could be achieved through the development of instruments, such as
innovation partnerships, to promote innovation in agriculture by bridging
the existing gap between research and farming practice and facilitating
communication and cooperation among stakeholders (farmers, advisors,
agrobusiness, scientists, administrations, etc.).

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larm modernisation has always been and still is an
important CAl ob|ective. Hany lu farmers have beneted
from grants to modernise their farm buildings and
machinery. 0thers have made use of grants to improve the
quality of their livestock and the conditions under which they
are reared.
Jhe challenge is to ensure that modernisation will assist
farmers to become economically competitive and to apply
environmentallysustainable techniques.
Jhe CAls rural development programme will remain a
signicant driver of change and progress. it will continue to
oer opportunities to farmers to improve their farms and,
more generally, the countryside they live in.
ln line with luropes growth strategy for the coming decade
lurope 2020 our farmers will become more ecient and
more competitive.
while grants and loans play a ma|or role, there are other
means to help farmers. Jhe lu assists farmers by providing
training programmes and advisory services, amongst other
measures.
Modernisation is another
CAP priority

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Jhe vast ma|ority of farms are relatively small.
Jhe average lu farmer has only l2 hectares
of land (equivalent to about 20 football
pitches), 70 % of farms are less than ve
hectares in size.
Jhe small size of their farms means that
farmers can nd it hard to get the best market
price for their produce. Jheir eorts to improve
quality and add value can go unrewarded by the
market price.
Jhe CAl increasingly helps farmers to
strengthen their bargaining position visvis
other players in the food chain.
Why farmers
dont always get
a fair deal
C0lCllJRAJl0l Al0lu Jll l000 ClAll.
luH8lR 0l llJlRlRlSlS
Hany retail outlets (supermarkets, shops, etc.) belong to a small number of companies which
have very strong bargaining power.
Source. lurostat Structural 8usiness Statistics and Structure of Agricultural loldings, data are 2007
(agriculture) and 2009 (other sectors).
larmers
l4 000 000
lood manufacturers
250 000
wholesalers
200 000
Retailers
500 000
Jhe lu helps farmers by encouraging.
Jhe formation of producer organisations. these allow farmers to form
groups so that they can sell their products collectively, enabling them
to exert greater market power within the food chain.
0ther forms of cooperation to give farmers more leverage in the
marketplace and raise competitiveness.
Specialised types of production such as organic farming.
Contractual relationships throughout the food chain.
Jhe creation of mutual funds and insurance schemes to allow farmers
to respond better to market instability or fastfalling prices.
ln addition the use of modern information, risk management and
marketing tools can increase farmers knowledge and bargaining power
along the food chain.

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Diversity
lurope is renowned for its huge range of ne
foods, wines and beers, as reected in our great
culinary traditions.
Quality guarantees
Jhe CAl provides labelling and logos that
guarantee the authenticity of traditional foods.
0ver l 000 foods carry an lu quality logo.
leople can buy local and traditional foods,
condent that the description on the packaging
is true.
Marketing standards
loods must satisfy certain minimum quality
standards. uniform standards for particular
goods allow consumers to compare prices from
dierent producers.
Quality food
a key to success
Organic products
0rganic production methods must comply with
strict lu legislation. 0rganic farming respects the
natural life cycles of plants and livestock. ln the
lu, organic food is identied by a special logo.
Ethical assurance
Jhe CAl encourages certication systems that
guarantee environmental and animal welfare
conditions under which foods have been
produced. Animal welfare standards in the lu
are among the highest in the world
Hygiene standards
lu rules are applied from the farm to the
table. lmported products must meet the same
standards as foods produced by lu farmers.
Jhe purpose of these standards is to maintain
food safety levels as products pass along the
food chain.

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Jhe luropean union is the worlds biggest importer of foodstus by a big margin.
Jhrough its overseas development policy, the lu helps developing countries to sell their agricultural
products in the lu. lt does this by granting preferential access to its market.
lach year, the lu typically imports close to 60 billion worth of agricultural products from developing
countries. Jhis is more than the other ve ma|or importers combined (the uS, !apan, Canada, Australia
and lew Iealand).
Jhe lu has extensive commercial and cooperation links with third countries and regional trading blocs.
ln addition, it has concluded (or is negotiating) bilateral trade agreements with its near neighbours and
other third countries as well as lconomic lartnership Agreements with developing countries.
The EU opens
its market for
developing
countries
AuRlCulJuRAl lHl0RJS lR0H 0lvll0lllu C0ulJRllS (Hllll0l )
Source. 0ocument 0u AuRl lnternational aspects of agricultural policy, data are the average for 2008 20l0.
united States
30 000
!apan
l3 000
Canada
4 000
Australia
2 000
lew Iealand
600
lu27
60 000

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Jhanks to its favourable climate, its fertile soils and the technical skills
of its farmers, lurope is one of the worlds most important producers of
agricultural products.
At the global level, food production will have to double in order to feed
9 billion people the estimated world population in 2050. Jhe lu,
through the CAl, plays a signicant role in meeting this challenge. Jhis is
why it needs to continue investing in its farming sector.
Europe is a major
exporter of quality food
Jhe volume, diversity and quality of its products
make the lu a ma|or exporter. ln fact, the lu
is the leading exporter of agricultural products
(mostly processed and high valueadded
products).
lu AuRlCulJuRAl JRA0l (Hllll0l luR)
Source. 0ocument 0u AuRl lnternational aspects of agricultural policy, data are rounded,
representing the average for 2008 20l0.
lorth America
lu lmport. 9 000
lu lxport. l5 000
Central & South America &
Caribbean & Hercosur
lu lmport. 50 000
lu lxport. 7 000
ACl & South Africa
lu lmport. l3 000
lu lxport. 7 000 Australia &
lew Iealand
lu lmport. 3 500
lu lxport. l 800
ASlAl & China
& lndia
lu lmport. l5 000
lu lxport. 8 400
South korea
& !apan
lu lmport. 300
lu lxport. 5 200
Russia & ukraine
lu lmport. 3 000
lu lxport. 9 500
lorth Africa
& lear last
lu lmport. 4 000
lu lxport. 8 000
lu lXl0RJS 8Y SlCJ0R
0ther machinery and appliances 21 %
Chemicals 11 %
lharmaceuticals 8 %
Agriculture 7 %
vehicles and parts 6 %
Jextiles 3 %
Construction equipment 2 %
Source. 0ata are 20l0, Commission services.
Jhe lu is one of the most important and active
members of the world Jrade 0rganisation and
plays a constructive role in devising innovative
and forwardlooking common rules for global
trade, including agriculture. 8y supporting the
role of the wJ0, the lu helps to maintain
a free, fair and open trading system for all
countries of the world.
Jhe ow of agricultural imports and exports to
and from the luropean union is shown below.
15
Jhe Common Agricultural lolicy delivers food to our tables, providing wholesome,
highquality and safe products at an aordable and fair price.
Jhe CAl has evolved over the years to meet changing economic circumstances
and the requirements of the citizens. Jhe vast ma|ority of citizens support this
policy and recognise its substantial benets.
low the CAl is being reshaped for future challenges. ln the years ahead, it will
be fairer, greener and more ecient. lt will be more innovative too. As it has done
over the last 50 years, it will continue to bring big benets to all lu citizens.
The CAP and you
Jhe reform has stimulated a lot of public interest.
lor more information go to.
http.||ec.europa.eu|agriculture|cappost20l3
The CAP towards 2020:
meeting the challenges
ahead

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luropean Commission
Jhe Common Agricultural lolicy
A partnership between lurope and larmers
luxembourg. lublications 0ce of the luropean union
20l2 l6 pp. 2l x 2l cm
Hore information on the luropean union is available on the lnternet (http.||europa.eu).
luxembourg. lublications 0ce of the luropean union, 20l2
lS8l 9789279220678
doi.l0.2762|3ll02
luropean union, 20l2
Reproduction is authorised provided the source is acknowledged.
Printed in Belgium
lrinteo on e|eventt| c|orinerree e|etceo rtrer (lCl)
Europe Direct is a service to help you nd answers
to your questions about the European Union.
Freephone number (*):
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European Commission
0irectorateueneral Agriculture and Rural 0evelopment
http.||ec.europa.eu|agriculture|50yearsofcap
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doi:10.2762/31102