RURAL GEOGRAPHY The Common Agricultural Policy (CAP) To protect farmer’s incomes To maintain steady and reasonable prices for customers To increase production to provide sufficient food supplies. How did CAP achieve these aims? Subsidies and grants Money to farmers for every sheep and cow owned. The EU guaranteed to buy UNLIMITED amounts of crops at a minimum price from farmers. And what was the problematic result? Over-production! 70% of the EU budget was spent supporting farming when farming only provided 5% of the total income. Surpluses were created. Butter, beef and cereal ‘mountains’ Milk and wine ‘lakes’

How CAP works – the intervention mechanism EU sets target price for farm produce for year Farmer takes produce to market Price is too low – farmer makes a loss EU buys produce from the Farmer at intervention price (target price less 10%) EU may give surplus away to the needy or use it for 3 rd world aid Farmer produces farm produce to sell to make a profit EU may decide to pay farmers to set aside land if production has been too high – i.e. leave fields empty for a year Farmer still in business next year Contented customer has a good supply of food Farmer breaks even or makes a small profit

RURAL GEOGRAPHY Set-Aside and Quotas Quotas: A limit to the amount that a farmer can produce. Set-Aside: Farmers are paid to not grow crops on a certain acreage of their farms Other measures Farmers have been given grants to improve the environment, for example they are paid not to use chemicals on their farms. This has encouraged a relatively new type of farming called organic farming.

RURAL GEOGRAPHY In 2010 it represented 47% of the EU's budget, down from 87% in 1970 when food production was heavily subsidised CAP more recently 23 January 2012 marked 50 years Subsidies have been reformed – phasing out specific subsidies in favour of flat-rate payments based on the area of land in cultivation, and for adopting environmentally beneficial farming methods. –The change is intended to give farmers more freedom to choose for themselves those crops most in demand and reduce the economic incentive to overproduce. Milk quotas are being phased out. –To control this, the quotas are rising by 1% a year, before they expire in Set-Aside has been suspended in response to concerns over high food prices since 2007/8 and the economic climate. –This land will now go back into production. Conservationists are not happy about this as it has been very beneficial to wildlife.

RURAL GEOGRAPHY Review of CAP Global warming and overpopulation are increasingly squeezing food resources in many regions. Europe's post-war achievement in food security after many years of rationing is one of the EU’s successes. The CAP is seen as an unfair trading system rigged in favour of the richer countries.

RURAL GEOGRAPHY 1.Describe the CAP. 2.What are greening measures designed to do? 3.How much does the British farming community receive each year? 4.Why do farmers need subsidies? 5.How will the new deal for CAP encourage young farmers? 6.Why do some people believe that CAP should be phased out? 7.Which of the three farms do you think will still be operating in twenty years time. Explain your choice. 8.Which if of the three farms do you think is the most deserving of the CAP subsidies? Explain your choice. Click on the image and watch the 13minute video that explains the improvements that have made to the CAP

RURAL GEOGRAPHY Organic farming GM crops GM crops were introduced for commercial production in 1996 and include corn, oilseed rape, sugar beet and soya beans. Two thirds of GM crops are produced in the USA. GM crops are designed with new qualities such as resistant to pests, cold or heat. GM crops improve crop yields. Seen as a solution to food shortages in developing countries. A means to reduce food bills in developed countries. Production is strongly opposed by conservation groups. A small but growing number of farmers grow organically without the mis-use of soil or water. Instead of fertilisers and pesticides they favour animal and green manure allowing better drainage and less damage to the environment. It is the intensive use of land and labour. The yields are lower than commercial farming More weeding must be done since pesticides aren’t used Farmers must wait several years before marketing their goods as ‘organic’. The extra work means that the produce is expensive to buy.

RURAL GEOGRAPHY Organic farming GM crops GM crops were introduced for commercial production in 1996 and include corn, oilseed rape, sugar beet and soya beans. Two thirds of GM crops are produced in the USA. GM crops are designed with new qualities such as resistant to pests, cold or heat. GM crops improve crop yields. Seen as a solution to food shortages in developing countries. A means to reduce food bills in developed countries. Production is strongly opposed by conservation groups. A small but growing number of farmers grow organically without the mis-use of soil or water. Instead of fertilisers and pesticides they favour animal and green manure allowing better drainage and less damage to the environment. It is the intensive use of land and labour. The yields are lower than commercial farming More weeding must be done since pesticides aren’t used Farmers must wait several years before marketing their goods as ‘organic’. The extra work means that the produce is expensive to buy.

RURAL GEOGRAPHY Environmentally sensitive areas (ESAs) are chosen because of their ‘high landscape, wildlife or historic value’ and where it is felt that the land is in danger from farming practices. Farmers in these areas are invited to: Environmental Stewardship Farming Scheme (ESS) The ESS is a joint farming-environmental initiative whose main objectives are to: Conserve wildlife Maintain and enhance landscape quality and character Protect the historic environment and natural resources Promote public access and understanding of the countryside Receive payment for maintaining the existing landscape. Receive higher payment for replanting hedges, restoring ponds and traditional farm buildings. Map of environmentally sensitive areas across Britain