The Cap: Whence it Came, Where it Should Go

Abstract

By the end of the 1970s the Common Agricultural Policy (CAP) had achieved its aim of satisfying the Community's needs for basic foodstuffs. Farmers have since sought to justify continued high levels of support by arguing that only a large population of farmers can deliver the countryside society wants and provide the backbone of the rural economy. Neither justification stands up to analysis. Only by phasing-out production-related support and accepting the accompanying restructuring can the industry' efficiency and effectiveness be improved to the point where it can compete on its own merits in world markets.

JEL Classification: Q12, Q18