Background and Context Background on the Common Agricultural policy
4.The CAP is the EU policy to provide financial support to farmers in Member States. It is managed and funded at European level from the resources of the EU budget. The majority of CAP funds are allocated to direct payments, which is based on the amount of land the recipient owns. Its declared objectives are: (i) to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food, (ii) to safeguard European Union farmers to make a reasonable living, (iii) to help tackle climate change and the sustainable management of natural resources, (iv) to maintain rural areas and landscapes across the EU, and (v) to keep the rural economy alive by promoting jobs in farming, agri-foods industries and associated sectors.
5.EU CAP rules are often described as falling into one of two ‘pillars’. Direct payments to farmers and market measures/support fall under Pillar 1 (P1), and rural development schemes fall under Pillar 2 (P2). This reflects the fact that direct payments were wholly funded by the EU while rural payments were co-funded by the EU and the Member State.
6.The EU CAP rules are negotiated between the Member States and the EU Commission by way of successive multi-annual frameworks. Each framework sets out in legislation the objectives to be achieved through farm and rural development payment programmes.