Corn Breeding in the 20th Century

EUROPEAN UNION'S (EU) COMMON AGRICULTURAL POLICY (CAP) REFORM

On June 26, 2003, the EU Council of Agricultural Ministers agreed on a package or reforms to the CAP. Much less ambitious than the reforms proposed by Agriculture Commissioner Franz Fischler in January 2003, these reforms will still give the EU additional flexibility to reduce trade-distorting domestic support in WTO negotiations. However, a central consideration is that Member States retain significant options regarding timing of introduction of reforms, and even the degree of "decoupling" reforms introduced. Key elements include:

a single farm payment for EU farmers based on payments claimed in the 2000-2002 reference period. This decoupled payment replaces some or all of the amounts currently paid under a variety of programs. Independent from production ("decoupled"), this payment will be linked to compliance with environmental, food safety, animal and plant health, and animal welfare standards, as well as a requirement to keep all farmland in good agricultural and environmental condition. Penalties would be applied for failing to fulfill these requirements.
Member States have the option to retain up to 25% of payments "coupled" to production (40% on durum wheat, higher percentages on various livestock enterprises).
a reduction in direct payments for larger farms (3% in 2005, 4% in 2006, 5% in 2007 and onwards) with the savings used to finance rural development measures.
no reduction in the intervention prices for cereals.
a new financial trigger to ensure that CAP expenditures do not exceed the EU's agricultural budget which has been fixed through 2013.

Because Member States have considerable latitude in implementing decoupling measures, ranging from 25% to 100% of current "blue box" payments, the EU will remain much more dependent on the "blue box" category than previously expected at current WTO negotiations. Increased Member State latitude is a potential minefield allowing national governments to get back into discretionary and disproportionate farm support. Moreover, the total amount of reduction in Total Aggregate Measure of Support is much more modest than as previously proposed in January reforms or as contemplated at WTO talks. The reforms have little direct affect on export subsidies nor on market access, both of which are key sticking points at WTO negotiations.