"CAP reform: Impact analyses of the mid-term review July 2002 proposals"
The European Commission has published a series of impact studies, which support the overall orientation of its proposals from July 2002 to review the Common Agricultural Policy (CAP). The studies indicate that "decoupling" aid from production would result in production adjustments where needed, but would clearly not lead to production abandonment. The studies also highlight that the reforms envisaged by the Commission would significantly improve market balances. This means that in the future our taxpayers' money would not be spent on financing unsaleable food mountains. The Commission's concept to reduce direct payments and shift more money to rural development, the so-called modulation, would impact little on markets. And the most important result of the simulations is that there would be a positive effect on overall farm income. The main impact of decoupling would be seen in the beef sector. The impact in the arable crops would be minor. This is the result of the fact that our current system is already decoupled to a large extent, meaning that adjustments in production will be limited.
Published in January 2003.
Impact analyses of the mid-term review July 2002 proposals"
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