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Greening agricultural payments in the EU’s Common Agricultural Policy

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  • Matthews, Alan

Abstract

Environmental objectives have become increasingly integrated into the EU’s Common Agricultural Policy (CAP) since the mid-1980s. Integration has been pursued through the attachment of environmental conditions to the receipt of direct payments in Pillar 1 (cross compliance) and the use of voluntary agri-environment measures in Pillar 2. In formulating its proposals for the revision of the CAP post-2013, the Commission opted to pursue further integration largely through Pillar 1 through the introduction of a ‘green’ payment for farmers following a specified set of mandatory farm practices. The legislative process was not concluded in February 2013, but enough is known of the positions of the Council and the European Parliament to indicate that the level of greening ambition in this CAP reform will be very limited. Some explanations for the apparent failure to significantly reshape the CAP to tackle the problems faced by the natural environment are reviewed. It is suggested that, far from being complementary, cross compliance and voluntary agri-environment measures are competing approaches to further greening of the CAP. Advocates of a greater focus on environmental objectives need to choose between these approaches.

Suggested Citation

  • Matthews, Alan, 2013. "Greening agricultural payments in the EU’s Common Agricultural Policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-27, April.
  • Handle: RePEc:ags:aieabj:149214
    DOI: 10.22004/ag.econ.149214
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    2. Vollaro, Michele, 2010. "The impact of the Single Farm Payments on the Expenditure on Fertilizers and crop protection inputs: a comparative study of the Italian agriculture," 120th Seminar, September 2-4, 2010, Chania, Crete 109428, European Association of Agricultural Economists.
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