Why the European common agricultural policy generates more and more waste: the keys

Paris is pressing Brussels to resolve the farmers’ conflict, which has been spreading from France to Germany for days. Emmanuel Macron will send his minister Marc Fesneau to the European Commission to urge a rapid change to the CAP; the common agricultural policy which is supposed to protect farmers, but is increasingly criticized by its beneficiaries. Why?

The CAP has existed for sixty years the alpha and omega of European agriculture. Thanks to the prices guaranteed by the CAP, European agricultural production skyrocketed starting in the 1960s.

The priority then was feed the population at a moderate price support an activity considered fundamental for food sovereignty.

In 2023, remains the EU’s largest expenditure item-27. The CAP continues to provide more than half of the income received by European farmers. The French are the main beneficiaries. But they are becoming poorer. In 30 years their income has decreased by 40%. What happened?

CAP generosity is in decline

The decline began with the CAP he has reduced his safety net. Since the 1990s, to limit the explosion of its expenditure, the E.U it ended guaranteed prices and the buying of surpluses.

A little bit at a time, the market began to determine prices and therefore, agricultural income. And this price tends to fall.

The bureaucratic procedures to receive the always essential subsidies from Brussels are increasing, as are the various costs borne by farmers.

CAP aid increasingly compensates for lost income. The return of inflation their already precarious situation worsens. THE increase in fuel prices and the fertilizers increases costs.

And rising interest rates reduces debt capacity. In this increasingly difficult context, they must adapt to a new metamorphosis of the CAP.

The CAP takes a green twist starting January 1, 2023. Brussels imposes environmental demands without taking into account the growing economic pressures on farmers.

A risky bet on the economic model

It was assumed that the high-end character of his production would spontaneously lead to an increase in his income, but with inflation this magical hypothesis will not come true.

Customers They are especially looking for low prices, as demonstrated by the crisis of organic products. The “greening” of agriculture requires better financial and regulatory support to preserve the European agricultural economic model.

An increase in the CAP budget not on the agenda, but it could be one of the issues at stake in the European elections. For comparison, United States and Japan they spend much more of the 27 in supporting their farmers. The Swiss are world champions, with subsidies three times higher to those of the European Union.

Attack on trade agreements

Farmers also denounce the free trade agreements signed in the name of the 27.

President Emmanuel Macron is maneuvering to suspend the signing of an agreement with Mercosur which penalizes French meat. The other bone of contention for the French, as for the Poles and Romanians, is that of Ukrainian products authorized in Europe without customs duties. A generosity that could be revised downwards.