The paper "Common Agricultural Policy" is a great example of an assignment on macro and microeconomics. The agricultural policy of Europe is influenced at the European Union level by the various authorities of member states and run by member states. The introduction of the Common Agricultural Policy (CAP) was meant to control, regulate, and thus boost agricultural activities in the region (Financial Management in the European Union, n.d). The Common Agricultural Policy (CAP) is a procedure of European Union agricultural programs and subsidies. CAP puts together a direct subsidy payment for land and crops which may be farmed with price support systems, including import quotas and tariffs for selected products imported to the EU, guarantee minimum prices.
The primary aim of CAP is to provide farmers with a reasonable living standard while ensuring consumers get quality food at reasonable prices as well as preserve rural culture. Functions of Agriculture in the EU The agriculture culture in Europe is expected to fulfill various functions. These functions are the focus of the Common Agricultural Policy in the European Union (European Commission, 2009). To understand the role of CAP, there is a need to focus on the key functions of agriculture in Europe. Food security Food security is the first role of European agriculture which is to supply food.
Studies have shown that the food security issue is a critical one and needs to be addressed as it may be aggravated by increased water scarcity and global climate change. The prospect to deal with this issue relies upon a functioning farming industry, a maintained production capacity, and a stable trade relations system (European Commission, 2009). Farmers in Europe face the challenge of providing food in an open market when they are expected to offer competitive prices and at the same time respond to societal standards regarding high-quality products, high food safety levels, animal welfare, and green farming practices.
Hence, the functioning of an economically sustainable agricultural sector in the European Union depends on increasing farmer’ s capacity for adjusting to new markets situations and responding to new technological and economic opportunities. Land management Agriculture in Europe is well established in the entire region. It is the major land use and farming is the key element in shaping the visual landscapes of the rural areas.
Agriculture has helped in shaping the rural landscape with woodlands, water basins thus forming a stable platform for business enterprises (European Commission, 2009).
Ackrill, R. 2000, The Common Agricultural Policy. Sheffield: Sheffield Academic Press.
Bruno, W. 2007, Set-aside subsidy halted to cut grain prices. The Daily Telegraph (London). Retrieved 06 October 2012.
European Commission Agriculture and Rural development, The Common Agricultural Policy Explained, available http://ec.europa.eu/agriculture/publi/capexplained/cap_en.pdf retrieved October 8, 2012.
European Commission, 2009, Why do we need a common agricultural policy? Discussion paper by dg agriculture and rural development. Available http://ec.europa.eu/agriculture/cap-post-2013/reports/why_en.pdf retrieved October 5, 2012
Financial Management in the European Union. Nao.org.uk. Retrieved 6 October 2012.
Patterson, L. 1997, Agricultural Policy Reform in the European Community: A Three-Level Game Analysis. International Organization 51 (1): 135–165.