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 22 jan 2020 06:46 

CAP: ensuring viable farm income

EU farm income is still significantly below the average income of the economy, despite this gap decreasing as a result of structural change driven by the outflow of labour from agriculture during the last decade.

Report (1240 Kb)

-The role of CAP subsides is still important in supporting farm income.
However, significant differences exist in the role of support among Member States and sectors, while differences are also observed in the assets and liabilities of the farming sector.
-The variation in the distribution of farm support is affected by the farm structure of Member States, and to the extent that this is linked to policy, it can be improved by the CAP (e.g. with capping, redistributive payments, etc.). However, it is also impacted by, and better addressed through an array of national policies beyond the CAP.
-A combination of measures is needed to make sure that farm income support does not freeze, but facilitates structural adjustment in the direction of addressing future challenges. Mechanisms that are as neutral as possible with respect to their impact on opportunity costs for labour, land and capital, combined with the proposed higher flexibility granted to Member States to design the desired distribution of subsidies could improve the targeting of support. A common policy framework and the single market help to minimise potential distortions of competition.

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