18 I EUROPEAN SEED I EUROPEAN-SEED.COM W ith the expansion of cities and the disappearance of agricultural lands, I often wonder how rural the EU still is. Well, according to the EU Commission, it appears that around 85% of the EU’s territory is classified as rural (48% is farm land and 27% forest) and that it is home to around half its population (farming communities and other residents). And did you know that we have about 12 million full-time farmers in the continent, with an average farm size of about 15 hectares? (By way of comparison, the US has two million farmers and an average farm size of 180 hectares). Overall, agriculture and the agri-foods industry - which is heavily dependent on the agricul- tural sector for its supplies - account for 6% of the EU's GDP, comprise 15 million businesses and provide 46 million jobs. In terms of types of farming, there is a wide variety in the EU, including conventional, intensive and organic farming. The arrival of the new member countries of central and eastern Europe further increased that diversity. The most typical type of farms are family farms, which are often passed on from one generation to the next. A COMMON AGRICULTURAL POLICY The EU has 508 million inhabitants which makes it the world's third largest population after China and India. So, it made sense to have a joint policy on agriculture. This policy is laid down in the Common Agricultural Policy (CAP), which was introduced in 1962 and has undergone many changes since its inception (see sidebar). The CAP is aimed to enable European farmers to meet the needs of over 500 million Europeans. Its main objectives are to ensure a decent standard of living for farmers and to provide a stable and safe food supply at affordable prices for consumers. GOVERNANCE OF THE CAP Before drawing up proposals, the European Commission coop- erates with a number of stakeholders, mainly through its many advisory groups. The Council of agriculture ministers of the 27 EU countries, together with the European Parliament, decides on the Commission's proposals. The day-to-day running of the CAP is the responsibility of the member countries. The budget is decided every year by the Council of the EU and the European Parliament. To keep long-term spending under control, they work within a multi-year 'financial framework'. FUNDING OF THE CAP Money for the CAP comes from the EU's general budget, and CAP spending on rural development is jointly financed by the EU and its member countries. The EU budget is in turn mainly financed out of its ‘own resources’: customs duties, levies, VAT and resources based on member countries' gross national income. COST PER CITIZEN According to the EU, the CAP costs each EU citizen around 30 eurocents a day. In 2011 it accounted for 43% of the EU's annual budget, or €58 billion. Its share has been falling continuously since 1984, when it stood at 72%, while the successive enlarge- ments of the EU since 1992 have resulted in a doubling of the number of farmers. The Commission states that CAP expendi- tures actually make up less than 1% of all public expenditures in all the EU’s member countries. Public expenditures on the farm- ing sector in the EU has been pooled at European level, which is not the case for any other economic sector. By comparison, EU countries spend three times more on defence. ALLOCATION OF THE MONEY The CAP budget for 2014-20 for all 28-member countries totals €95 billion (current prices) and this money comes from the European Agricultural Fund for Rural Development (EAFRD). The CAP’s budget is spent in three different ways: •  About 70% of the CAP budget goes to income support for farmers and assistance for complying with sustainable agri- cultural practices. Farmers receive direct payments, pro- vided they live up to strict standards relating to food safety, environmental protection and animal health and welfare. These payments are fully financed by the EU. Under the latest reform of 2013, 30% of direct payments are linked to European farmers’ compliance with sustainable agricultural practices which are beneficial to soil quality, biodiversity and the environment generally, such as crop diversification, the maintenance of permanent grassland or the preservation of ecological areas on farms. •  A little less than 10% of the CAP budget goes to market- support measures: these come into play, for example, when adverse weather conditions destabilise markets. •  The remaining 20% of the CAP budget goes to rural development measures which are intended to help farmers modernise their farms and become more competitive, while protecting the environment, contributing to the diversification of farming and non-farming activities and the vitality of rural communities. These payments are partly financed by the member countries and normally extend over a number of years. MODERNISATION OF EUROPEAN AGRICULTURE To encourage modernisation, and to help farmers improve their farms, their processes and sell their produce and pro- duce higher-quality foods using more sustainable, environmen- tally-friendly farming methods, there are many incentives in the CAP. It is offering measures to facilitate collective invest- ment, help small farms to develop and encourage transfers of agronomic know-how between farmers through a European Innovation Partnership in the farming sector. ACHIEVING THE AIMS OF CAP The effectiveness of the CAP is closely evaluated. Before making any legislative proposals, the Commission consults stakehold- ers and citizens, and conducts impact analyses. It also regularly commissions independent studies on the performance of the CAP’s various instruments and how they can be improved. THE COMMON AGRICULTURAL POLICY IN EUROPE. BY: MARCEL BRUINS WHY DO WE NEED A CAP AT THE EU LEVEL?