Sectors with high farm payments most severely hit by CAP reforms

Gepubliceerd op
6 december 2011

Europe's common agricultural policy is set to change.

dairy farm

The European Commission has put forward proposals to distribute the income support differently, to invest more in sustainability and further reduce the production support. This has a direct effect on various types of farms.

Prior to the negotiations that are about to begin, the Dutch Ministry of Economic Affairs, Agriculture and Innovation asked LEI, part of Wageningen UR, to provide insight into the possible effects. LEI published the report Bedrijfstoeslagen na 2013 (Farm payments after 2013) on this topic.

The consequences of the new agricultural policy are different for each farmer. Intensive dairy farmers, veal farmers and arable farmers producing starch potatoes in particular will receive a great deal less support from Europe.

According to the researchers, dairy farmers and growers of starch potatoes will feel the financial impact of this very quickly. This is because the dairy and potato-starch markets will barely respond to these measures, if at all, so the farmers will largely have to foot the bill of the consequences themselves.

This also applies to the market for pink veal, albeit to a lesser extent. The consequences will be less far-reaching for the white veal farmers, as part of the effects can be charged on to consumers within this specific market.