By Berkeley Hill
The typical Agricultural coverage (CAP) has been aiding the earning of the ecu Union's agricultural neighborhood for part a century. regardless of this, there's nonetheless no respectable process in position to trace the commercial health of farmers and their households. This publication examines the facts at the total wealth of farming families, and concludes that during approximately all member states, they aren't usually a negative zone of society, with disposable earning which are just like, or exceed, the nationwide common. during this up to date variation, the writer discusses the newest proof, makes options for amassing larger info, and considers the results for the CAP as we input the second one decade of the twenty first century.
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Additional resources for Farm incomes, wealth and agricultural policy : filling the CAP's core information gap
Though for some statistical purposes the Commission lumps farmers and hired workers together, in practice the CAP directs its support exclusively at the self-employed sector. The CAP is also ambiguous in its application of support. When the CAP enhanced the prices of farm products, all producers benefited to some extent, the larger ones the most (OECD, 1996, 1999). Systems of direct payments based on former levels of production and subsidies received have largely maintained this distribution (Moreddu, 2011).
The MacSharry proposals again recognised the need to 'maintain economic and social cohesion by safeguarding the position of the vast majority of farmers in the 12 Member States' (Commission, 1991b). Though oft repeated, quite what is intended by the term 'family farm' has never been made clear. Many alternative criteria are possible, of which family ownership, family management, or (probably the intention of the fathers of the CAP) sole operation by the family are front runners (Hill, 1993). The view of what constitutes such a farm is likely to be very different in, for example, the UK (where family ownership of the business is implied, so a family farm can be a large one and employ mainly non-family labour) from that in Greece or Italy (where any hired labour would rule it out).
Another indication of the persistence of the CAP aim of 'ensuring a fair standard of living of the agricultural community' is that these words are incorporated into the Regulations that give the legal basis for spending on agriculture from the EU budget. For example, the Council Regulation (EC) No 1234/2007 legitimising the reorganisation of intervention in the markets of numerous commodities into a single regime (the Single CMO Regulation of 2007) uses these same words, following a convention demonstrated in the superseded legislation.