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REPORT: The European model of agriculture

> > REPORT: The European model of agriculture



1 The common agricultural policy- a history of dynamic change4

2. Origin of the European model of agriculture .7

3. Economically and socially sustainable European agriculture.10

4. Challenges ahead .16

Conclusion. .20



Europe is known for the diversity of its agriculture and its food and drink products. These products derive from Europes natural environment and its farming methods, developed over centuries of agricultural activity. Food and drink products, together with cooking area major part of the cultural identity of Europes people and regions. One of European agricultures greatest assets its reputation for producing quality foodstuffs.

This report is about the agriculture of the EU, which is very successive and worth following . The citizens of the EU enjoy good quality healthy safe to eat products, favour life in the countryside, ensuring stable incomes for farmers, promoting the respect for the environment, help farmers to adapt to consumers expectations, protection medium or small sized farms. It is subdivided into 4 chapters. They are The common agricultural policy- a history of dynamic change ,Origin of the European model of agriculture, Economically and socially sustainable European agriculture, Challenges . They tell us about the European model of agriculture, its aims, main points, problems and effective solutions. market oriented agriculture, competitive agriculture both internally and externally , agriculture, which is spread throughout Europe, including the less-favoured and mountainous regions , consumer concerns

This topic was under the consideration much time. Many scientiscs wrote their books to these problems.

The aim of this scientific research is to collect, systemize and learn the works on this topic. I think that this topic is extremely burning for our country, because Ukraine is an agricultural country and should use its natural sources to achieve prime in economy.

1. The Common Agricultural Policy - a history of dynamic change

Over a period of more than forty years, the CAP has been able to meet the diverse challenges it has had to face. The Common Agricultural Policy was created in the1950s at a time when societies had been damaged by years of war and when food supplies could not be guaranteed. The objectives of the CAP were set to be the encouragement productivity in the food chain, ensuring a fair standard for living for farmers, market stabilisation and ensuring the availability of supplies at reasonable prices for consumers. By the 1980s the EU had to contend with almost permanent sures of major farm commodities. Production limits and automatic budget stabilisers were created against the background of the Uruguay Round. This led to the MacSharry Reform in 1992 with price reductions, compensatory payments, obligatory set-aside and new accompanying measures, which now are part of rural development measures. At the end of the decade the EU had to prepare for the next and largest wave of enlargement and the new WTO round.

The Council Conclusions of November 1997 laid down the basis of European Model of Agriculture and provided the guidelines for future reforms. The reform process begun in 1997 has so far affected all the important market organisations with the exception of wine, fruit and vegetables and bananas.

The 2003 reform was originally intended to be just a mid-term review of Agenda 2000 -decisions, but became a major reform of the CAP. In the 2003 reform the main focus was of course the WTO Doha round and the stabilisation of the agricultural budget, but also the increasing concerns of consumers for the environment, food safety and animal welfare. The proactive reforms introduced direct payments and the principle of decoupled support. At the same time the societal concerns were taken on board by setting cross-compliance rules for direct payments and by giving more emphasis on the rural development policy. The idea was to provide a long term perspective for the agricultural sector as a whole.

In the consecutive reforms of the common market organisations certain common elements can be found. These elements include the approach of combining reduction of prices with compensation through direct aids and flanking measures. This approach, which was further developed by decoupling of direct aids, has increased the internal and external competitiveness of agriculture, and has facilitated the negotiations in the WTO and also facilitated enlargement of the EU. However, at the same time also specificities of different sectors and regions of the Community have been taken into account by tailor-made solutions, such as partial coupling of direct aids to production in order to avoid abandonment of land.

The reforms have contributed to the maintenance of viable rural societies and thus have been socially acceptable. They have also helped ensure fair incomes to farmers and have struck a fair balance between sectors, producers and regions and avoided distortions of competition. In addition, the reforms have encouraged new income opportunities for farmers, such as the potential benefits offered for agricultural production through increased use of renewable energy sources. The reforms have encouraged the agricultural and food production systems to adpt themselves into a more market oriented environment. [1]

European Union agricultural policy aims to benefit consumers as well as farmers.

Between 2001 and 2003, Eurobarometer surveys collected peoples perceptions about the advantages of the European Union agricultural policy Respondents were presented a list of statements and asked to say for each of them whether they agreed with it or not. From the results collected in these three Eurobarometer waves, it appeared that people perceive the European Union agricultural policy as a guarantee to ensure the safety, quality and affordability of food products.More specifically, European

Union citizens believed that:

- it ensures that the food you buy is safe to eat

- it ensures that the food you buy is of good quality

- it ensures that the food you buy is healthy

- it ensures that you know enough about where your food comes from

- it ensures that the food you buy is reasonably priced [2]

2. Origins of the European Model of Agriculture

In 1997 the Agriculture Council discussed thoroughly the Commission proposals for the CAP reform known as Agenda 2000. The Council adopted in November 1997 a set of conclusions (document 12509/97), in which it laid down the basics of the concept of European Model of Agriculture.

The European Model of Agriculture is comprised of a set of shared values of the Member States of the European Union. It was created at a time when Europe faced new kind of challenges: enlargement towards Central and Eastern Europe, increasing international competition and internal financial constraints. Challenges and opportunities remain for European agriculture linked to:

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