CAP reform proposes income boost
According to the studies published by the Commission, farm income would increase by 8.5 % compared to 2001.
As to a scenario based on the existing policy (Agenda 2000), the income impact would be largely neutral for EU-15 (-0.1% in 2009).
While beef production in the EU-15 is expected to fall by 2.7% in the medium-term, the studies state that producers should see a 7% price increase by 2009. For the new Member States, the CAP reform would secure the income gains generated by enlargement.
In 2009, market income is expected to increase by 17% in real terms as compared to the situation in 2002 without enlargement.
Taking account of the phasing-in of direct payments and rural development, the studies predict this real income increase could reach more than 45%.
De-coupling in the new member states would produce similar trends to those in the EU-15, as producers’ decisions would be driven by market considerations.
EU Farm Commissioner Dr Franz Fischler said the studies show the reform will secure farmers a higher income while gearing production more sustainable farming.
