EU Reaches an Agreement on Farm Subsidies

On June 26, 2013, European Union member states reached an agreement with the European Parliament on the next Common Agricultural Policy (CAP). The new CAP contains several key provisions. First, the new policy aims to “green” Europe’s farms and make farms more sustainable by requiring farmers adhere to certain environmental practices to be eligible to receive a basic payment. A farmer will be required to respect certain types of environmental criteria and producers will have to maintain permanent grassland, promote biodiversity, and protect “ecological focus areas.” Second, CAP member states will be allowed to allocate a portion of their direct payment budget to coupled subsidies. Third, the new policy will not provide subsidies to airports, railway services, water works, real estate services, and permanent sports and recreational grounds. Lastly, production quotas for sugar will be phased out by 2017. The new policy must be and approved by Council and once finalized will be implemented in 2014.

For more information on the agreement please see the European Parliament’s Press Release.

Written By Clara E. Conklin - Research Assistant

The Agricultural Law Resource and Reference Center

June 27, 2013