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index by sub-area 5.4. Support for common policies (Common Agricultural/Fisheries Policy)
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An assessment of the practicalities and acceptability of a bond scheme as part of Common Agricultural Policy reform

Contract nr: QLK5-CT-1999-01510
Project type: RS (Research and Technological Development Project)
Starting date: 01-02-2000
Duration: 30 months
Total cost: 508,124 EUR
EC Contribution: 411,500 EUR
Scientific Officer: Veronica SABBAG
Research topic: 5.4. Support for common policies (Common Agricultural/Fisheries Policy)

The proposed project seeks to assess the so-called bond scheme as a way of providing transitional relief to farm businesses experiencing reductions in price and income support as part of CAP reform. The main objective is to design a workable bond scheme and to test its practicality and acceptability on policy-makers, farmers and the stakeholders in agriculture. The objective will be achieved via: a literature review; a conference; a postal survey; a series of case-study interviews with farmers; and workshops involving stakeholders. The expected result is a costed and worked out scheme applicable to the full range of farmers in the UK, Germany and Portugal and extendable to the rest of the EU.


The project has the following four main objectives:

(i) to design a bond scheme capable of providing transitional relief to farms throughout the EU under CAP reform as currently proposed;
(ii) to cost this proposed bond scheme;
(iii) to assess its practicality and acceptability with policy-makers and farmers;
(iv) to discuss the realism of the proposed bond scheme with a wide range of individuals and organisations with interests in and responsibilities for agriculture.

The research project will assess the practicalities and acceptability of a bond scheme for farmers and their businesses as part of Common Agricultural Policy reform. Such a scheme would involve farmers being issued with bonds on which the EU would make annual payments for several years. These bonds would be transferable and could be sold. Several variants of the bond scheme will be developed as part of the study.

The aim will be to subject the proposed scheme to wide consultation amongst farmers, policy-makers and other stakeholders in agriculture.


The University of Reading
Tel.: +44 118 944 0334
Fax: +44 118 921 9028

University of Goettingen
Tel.: +49 551 394822
Fax: +49 551 384823
Universidade Católica Portuguesa - Centro Regional do Porto
Tel.: +351 26196294
Fax: +351 26196291