Evaluation of Agricultural Policy Reforms in the European Union

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This report provides an overview of the main characteristics and structure of the current Common Agricultural Policy (CAP) and its developments in the last 25 years in a changing environment within and outside the EU.

Drawing on material presented at the OECD Workshop on the Disaggregated Impacts of CAP Reform, held on 10-11 March 2010, and model-based scenarios, it analyses the impacts of policy changes on production, trade, land use, farm structure, the environment and some aspects of rural development, using changes in the level and composition of OECD indicators of support, notably the Producer Support Estimate (PSE).

This report further suggests improvements in the market orientation, competitiveness and risk management at all levels of the food chain, and pleads for clarifying the link between policy measures and objectives through better targeting, and strengthening evidence on which to base policies.

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Agricultural Policy Reforms in the European Union

Successive reforms of agricultural policy in the European Union (EU) have progressively and significantly reduced levels of protection and changed the way support is delivered to farmers. This chapter first describes the main characteristics of the Common Agricultural Policy (CAP) as applied in 2010, including the various instruments in place, their funding and implementation. It then provides an overview of agricultural policy reforms implemented since the beginning of the 1990s, and analyses resulting developments in the level and composition of support using the OECD indicators of support, in particular the Producer Support Estimate (PSE).

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