The CAP, yesterday, today and tomorrow VIII: the Mac Sharry reform of the CAP

1. The CAP, yesterday, today and tomorow
2015/2016
SBSEM and European Commission
8. The MacSharry reform
Tomás García Azcárate

2. Increased inefficient expenditure

3. Decreased cereals consumption

4. Increase cereal intervention stocks
groupe outlook, 22 September 2010 8
EU Intervention Stocks &
Cereals Production
1979 to 2009
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
79/80
80/81
81/82
82/83
83/84
84/85
85/86
86/87
87/88
88/89
89/90
90/91
91/92
92/93
93/94
94/95
95/96
96/97
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
InterventionStocksx1000t
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
CerealProduction
Wheat Intervention Stocks
Barley Intervention Stocks
Rye Intervention Stocks
Maize Intervention Stocks
Durum wheat Intervention Stocks
Sorgho Intervention Stocks
Cereal Prod

5. Lack of legitimacy
• Coupled support had promoted an artificial
intensification of farming with negative
environmental consequences
• 80% of the support was received by 20% of the
farmers

6. Important decisions
• Cereals: -29% decrease in intervention prices
• Beef: -15%
• Compensatory payments based on historical
areas, yields and herd
• Accompanying measures: afforestation, early
retirement + agri-environmental support

7. Important non-decisions
• No decrease in milk quota to adjust supply and
demand
• No modulation of support in favour of small and
medium-size farmers
• Less environmentally-friendly support to
extensive beef farmers

8. Decisive consequences I
• Maximum profitability per ha ‡ maximum yield.
Economic extensification. Input reasoning

9. Decisive consequences II
• The beginning of a new alternative to support
farmers: agri-environment measures means
public money for public goods
• Enlarged and more transparent public debate on
farming support

10. Decisive consequences III
• Made possible the Blair House and then the
Uruguay Round agreements
• Opened the fields for fresh thinking: Buckwell
report - the CARPE fed the Commission thinking
for more than 20 years

11. If you want to know more …
• DG AGRI webpage:
http://ec.europa.eu/agriculture/index_en.htm
• My webpage:
http://tomasgarciaazcarate.com
• Twitter: Tgarciaazcarate
• Linkedin: Tomas Garcia Azcarate
• Facebook: Tomas Garcia Azcarate