Our industry 2014 - (Page 30)
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02 Sustainable agricultural systems
Investment and subsidy trends
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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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