Common Agricultural Policy

Definitions

Agriculture

  • noun a set of regulations and mechanisms agreed between members of the European Union to control the supply, marketing and pricing of farm produce.

Banking

  • noun an agreement between members of the EU to protect farmers in EU countries by paying subsidies to fix the prices of farm produce.

Economics

  • noun an agreement between members of the European Union to protect farmers by paying subsidies to fix the prices of farm produce. The European Union has set up a common system of agricultural price supports and grants. The system attempts to encourage stable market conditions for agricultural produce, to ensure a fair return for farmers and reasonable market prices for the consumer, and finally to increase yields and productivity on farms in the Union. A system of common prices for the main farm products has been established with intervention buying as the main means of market support. The first major reforms in 30 years were carried out in 1992. The objectives were to control surpluses and to reduce support costs to the taxpayer and to comply with the demands of GATT. The reforms included arable set-aside, new quotas and price reductions.
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