In evaluating the pattern of budget transfers to agriculture, most of the focus is on the transfers through the EU budget. The negotiations on the Multi-annual Financial Framework (MFF) were closely followed because of their importance for the size of the CAP budget in the overall EU budget in the coming programming period.
However, in addition to EU transfers farmers also receive significant transfers from member state budgets. These take two forms: member state co-financing of CAP Pillar 2 expenditures (plus some allowed top-ups of Pillar 1 payments), and state aids paid by member states to their farmers. A proportion, but not all, of agricultural state aid represents member state spending on measures equivalent to rural development measures which would be eligible for funding under Pillar 2 if the national allocations were bigger, but which are funded instead by national exchequers.… Read the rest
Europe's common agricultural policy is broken – let's fix it!