Established in the 1960s, the CAP has become a significant resource for European farms. It is also an effective way to steer agriculture towards ecological transition. A look back at the main developments of the CAP from its beginnings to the present day.
1962, Birth of the CAP
Conceived by the European Union in 1962, the Common Agricultural Policy (CAP) was designed to develop a competitive agricultural sector capable of supplying its Member States with food (which was not yet the case at that time). The aim was therefore to provide products that were affordable for consumers and profitable enough for farmers to ensure them a fair standard of living.
The system put in place at that time subsidised the tonne of food delivered.
Thus, European agriculture is being pushed to produce more, which is leading to a modernisation of practices, particularly with the development of mechanisation and land consolidation.
Very quickly, supply became greater than demand, and quotas were introduced from the 1970s onwards to regulate production.
1992, first major reform
In 1992, the CAP took a new turn, shifting from market access support to producer support.
The objective was to reduce the overall CAP budget by moving to direct income support, proportional to farm size and a reference yield.
This new feature in CAP payments is therefore encouraging some producers to increase their Utilised Agricultural Area (UAA).
2000, questioning of the CAP system
However, in the early 2000s, the CAP's legitimacy was called into question. Its continued significant weight in the European Union budget, as well as its highly productivist approach, led to a new reform.
This reform aims to achieve several objectives:
to embrace the diversification of agricultural holdings; ;
lower guaranteed prices in order to narrow the gap with world market prices; ;
promote greater awareness of environmental protection and food safety. ;
demonstrate the breadth of functions to which agriculture responds in order to justify the existence of this European aid in the EU budget.
2003, a reform for more sustainable agriculture
In 2003 the CAP moved towards a more «sustainable» version of agriculture. It broke the link between production and aid by replacing its direct support system with a single payment per farm, regardless of production.
This gave rise to the Single Payment Scheme (SPS), which is now based on a historical reference to the 2000, 2001, and 2002 harvests. The aim of this European manoeuvre was to no longer orient production.
This decision has sparked a lot of debate, particularly among agricultural unions, who see it more as a form of welfare than anything else.
This new payment is also subject to the principle of conditionality of aid, which is being implemented. French farmers who receive one or more grants are checked for compliance with regulatory requirements concerning the environmental, public health, plant health, and animal welfare sectors.
2014, payment rights reform
In 2014, a new reform was introduced, replacing, among other things, the DAP (which operated on an old reference system) with the Basic Payment Entitlements (BPE).
BPS operate on the principle of «decoupled payments». This means a flat rate per hectare for eligible Utilised Agricultural Area (UAA) which is independent of the type of agricultural production.
The new CAP 2023-2027 and the objectives of the EU Green Deal
The new CAP 2023-2027 aims to steer agriculture towards achieving the objectives of the Green Deal (European Green Deal which includes among its aims the end of net greenhouse gas emissions by 2050.
The first upheaval of this new CAP concerns the livestock sector, more particularly dairy and suckler beef herds, with the replacement of remuneration based on the number of animals with a payment based on the Adult Cattle Unit (UGB).
The second major innovation is the introduction of eco-schemes, which are non-compulsory but financially supported.
There are three categories of non-cumulative eco-schemes:
the path of agricultural practices (diversification, presence of ground cover in the inter-rows of vines and orchards, presence of permanent meadows…),
certification (Organic Farming or environmental certification for agricultural holdings,...)
the path of biodiversity-friendly elements (presence of hedges and copses, presence of agri-environmental infrastructures, etc.).
For each category, there are two payment levels: €60/ha or €82/ha depending on compliance with different criteria.
The CAP 2023-2027 integrates a number of reforms aimed at supporting the transition to sustainable agriculture in the EU.
Therefore, a large part of the budget is allocated to ecological programmes that further encourage climate- and environmentally-friendly agricultural practices and methods, with a strong focus on biodiversity and climate.
