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History of the CAP

The 1992 reform ("MacSharry reform")

The MacSharry reform started the shift from product support (through prices) to producer support (through income support).

The reform aimed to improve the competitiveness of EU agriculture, stabilise the agricultural markets, diversify the production and protect the environment, as well as stabilise the EU budget expenditure.

Direct payments were introduced in order to compensate for the decrease of the price support (cereal guaranteed prices were lowered by 35%, and beef prices by 15%).

Compulsory set-aside and other accompanying measures (agri-environment programmes, afforestation, early retirement, diversification) were also introduced.


Key documents:



Key document:



For a more detailed explanation of this period read the first pages of the document "The Common Agricultural Policy - Promoting Europe's agriculture and rural areas: Continuity and change" of 1998.




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