A Bond Scheme for Common Agricultural Policy Reform by Alan Swinbank, Richard Tranter

By Alan Swinbank, Richard Tranter

Annotation. the typical Agricultural coverage (CAP) is at an deadlock. whereas it truly is stated that latest rules usually are not tenable, all contemporary reform plans were condemned as unacceptable. besides the fact that, a 2bond scheme3, as a part of reform that can pay extra recognition to societys aspirations for the surroundings and rural improvement, deals a fashion ahead. This publication demystifies the bond scheme idea and explores issues expressed by way of farmers and coverage makers. Written through economists, a political scientist and a practicing baby-kisser, it deals infrequent insights into european farm coverage.

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In practice, the word ‘decoupled’ is used only once, in the heading ‘Decoupled income support’ (paragraph 6). It is under this heading that a bond scheme would be declared. Decoupled income support payments would have to meet the following criteria: (a) Eligibility for such payments shall be determined by clearly defined criteria such as income, status as a producer or landowner, factor use or production level in a defined and fixed base period. (b) The amount of such payments in any given year shall not be related to, or based on, the type or volume of production (including livestock units) undertaken by the producer in any year after the base period.

Whether this will happen remains to be seen. Direct Payments in the EU 31 Enlargement At Copenhagen in December 2002 the EU concluded its negotiations with 10 applicant states, paving the way to enlarge the membership of the EU to 25 on 1 May 2004. The new Member States are: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. Although there were many questions that exercised the negotiators, whether or not farmers in the new Member States should qualify for direct payments was a key issue (Buckwell and Tangermann, 1999; Daugbjerg and Swinbank, 2004).

In 2000, more than 70% of IACS claimants were paid €5,000 or less, with the proportion rising above 90% in Portugal (European Commission, 2002). In addition, the new Single Payment Scheme would have been capped. After deducting the €5,000 franchise mentioned above, the maximum payment per claimant would have been €300,000 (Commission, 2002b). 05% of claimants had IACS claims in excess of €300,000, mostly concentrated in Germany but some in other Member States notably Spain and the UK, accounting for 4% of payments (European Commission, 2002).

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