This document summarizes the evolution of the Common Agricultural Policy (CAP) of the European Union from 1968 to 1985. It discusses key reports and policies over this period including the 1968 Mansholt Plan which aimed to modernize European agriculture. Major policies and directives established farm support, investment aid, and compensation for farmers in less favored areas. The first regulation in 1985 consolidated previous directives and introduced additional support for young farmers, environmentally sensitive areas, and afforestation.

1. The CAP, yesterday, today and tomorow
2015/2016
SBSEM and European Commission
5. The first structural policy
Tomas Garcia Azcarate

2. 1968: the diagnosis of Sicco
Mansholt
• In five years, the number of farmers had fallen
by 5 million, from 15 to 10 million
• 2/3 of European farms < 10 ha
• Annual increase in agricultural productivity: +7%
• Annual increase in demand: + 3.6% from 1960
to 1965; +2.7% since 1965

3. 1968: the Mansholt plan
• 5 million fewer farmers needed by 1980
• Farm size increase, by 7 or 8
• Price freeze or even price decrease for production
in surplus
• Set aside 5 million ha
• Decrease dairy cow numbers by 3.5 million in 8
years

5. Tremendous discussion but modest
results
• 1972: Directive on modernisation of agricultural
holdings
• 1972: Directive to encourage farmer retirement
• 1972: Directive on socio-economic information
and training in agriculture
• 1978: Directive on producer groups

6. Three important concepts
• Full-time farmers: the majority of their income
comes from agriculture or most of their time is
spent on the farm
• Sectorial exclusions: some sectors were
excluded from the investment schemes: chicken,
eggs and pork, for instance
• Viable farms and development plans: should
be able to provide an income close to the
regional average

7. 1975: Montain and hill farming
• 1975: Directive on mountain and hill farming and
farming in other less favoured areas
• Only 2 years after British accession
• Additional support given to those areas as farm
allowances and investment support
• NEW: Support for diversification of activities of
full-time farmers

8. 1985: the first Regulation I
• Regulation, more effective than Directives
• NEW: Development plan’s target is now to
improve farmers’ incomes sustainably and
significantly
• NEW: Even without development plan (limited)
support is possible
• NEW: Quantitative limits per farm on investment
aid and compensatory allowances

9. 1985: the first Regulation II
• NEW: installation aid for young (full-time)
farmers
• NEW: possible additional support for farmers in
environmentally sensitive areas
• NEW: support for afforestation of agricultural
land or improvement of forest areas in
agricultural areas, always for full-time farmers

10. 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