The Common Agricultural Policy (CAP) refers to a comprehensive policy framework established by the European Union (EU) to regulate and support agricultural activities within its member states. The CAP was implemented in 1962 with the primary goals of ensuring food security, stabilizing agricultural markets, boosting rural development, and guaranteeing a reasonable standard of living for farmers.
The CAP operates through a combination of regulatory measures, financial assistance, and market interventions. It is primarily funded through the EU's budget, which allows the implementation of key policy instruments such as direct payments to farmers, rural development programs, market interventions, and trade policies.
One of the primary elements of the CAP is the provision of direct payments to farmers, known as the Single Payment Scheme (now replaced by the Basic Payment Scheme). These payments are aimed at providing income support to farmers and are conditional upon certain environmental and agricultural standards.
The CAP also includes measures to manage agricultural markets, such as price intervention to stabilize prices and supply, market support programs, and import tariffs. In addition, the policy promotes rural development through funding programs for diversification, infrastructure development, and environmental conservation in rural areas.
The CAP has evolved over time to address changing needs and challenges, emphasizing sustainability, environmental protection, and market competitiveness. Through its various components, the policy aims to ensure a vibrant agricultural sector, promote food self-sufficiency, preserve rural communities, and balance the interests of consumers, farmers, and the environment.
