Our industry 2014 - (Page 30)

  30   02 Sustainable agricultural systems   Investment and subsidy trends   ■■ ■■ Crop insurance is offered to farmers at favorable rates. With two new programs  introduced this year, more realistic alignment payments can be made with  producer risk based on actual yields and market prices. Conservation programs to assist producers and landowners in adopting  activities that protect and improve the environment. Although predicted to  surpass commodity program payments, spending on conservation programs  will be cut by $4 billion over the next 10 years by streamlining and  consolidating conservation programs and reducing acres enrolled in the  Conservation Reserve Program.    Breakdown of 2014 Farm Bill proposal Nutrition Crop insurance Conservation Commodity 80% 9% 6% 5% Source: US Congressional Budget Office Government subsidies:   EU Common Agricultural Policy (CAP)  The Common Agricultural Policy (CAP) has been a cornerstone of EU policy  making for the past 50 years. Over time, the role of the CAP has evolved from  assuring the availability of food supplies at reasonable prices to strengthening  the competitiveness and the sustainability of agriculture and rural areas across  the EU.  According to the European Commission, there are 12 million full-time farmers in  the EU, managing an average of 15 hectares (compared with 2 million and 180  hectares respectively in the USA). Overall, agriculture and the wider agri-food  industry provide 7% of all jobs and generate 6% of EU GDP. The next CAP agreement covering the period 2014 to 2020, finalized in  December 2013, continues a clear policy shift; away from production-based  support started under previous reforms and towards a more cost-effective,  equitable, and environmentally-friendly CAP. The latest reform also offers  Member States more flexibility than before in adapting certain rules to their  national context.    To achieve these goals, existing CAP instruments have been revised to make  them less bureaucratic and better geared towards supporting active farmers.  2012 EU budget for   agriculture: € 58 billion

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Our industry 2014

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