Evaluation of Agricultural Policy Reforms in the European Union
The Common Agricultural Policy 2014-20
The Common Agricultural Policy (CAP) is the primary agricultural policy instrument of the European Union. This report focuses on the new features and institutional context of the current CAP 2014-20, adopted by the European Parliament and the European Council in December 2013. Special attention is given to risk management instruments and environmental measures. The conclusions drawn in this report seek to inform future reforms of the CAP.
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Environmental components
Through time, the CAP has developed a range of policy measures that address environmental issues in agriculture. EU farmers are required to adopt certain practices deemed to deliver particular environmental outcomes. A number of voluntary schemes are also available for take up by EU farmers. The CAP 2014-20 introduced a new greening payment with more stringent requirements. This chapter describes the environmental components of the CAP 2014-20 and discusses whether they are innovative or rather represent a continuation of previous policies. The chapter offers an ex ante assessment of the potential impacts of these measures that is based on a review of the literature, on the results of the CAPRI model of European agriculture and on the analysis of farm support using the PSE framework.
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