1. Redistributive Policies
Agriculture and Cohesion

2. Redistributive Policies
Why redistribute?
Characteristics of redistributive policies
Burden on EU budget (CAP 45%)
Encourages rent-seeking behavior
Organized interests
Difficulty of reform

3. EU Budget:

4. Common Agricultural Policy
EC’s constitutive bargain
Small and diverse agricultural sector
Shapes history of EU integration
Empty chair crisis
British budgetary contribution
Food security to European agricultural model

5. CAP reform Shift from price support to income support
Impetus for reform:
International trade
Environmentalist and safety concerns
2004 enlargement
Challenges of reform
Agriculture Council
Committee of Professional Agricultural Organizations of the EC
Franco-German axis

6. CAP reform Price support Income support Over-production Storage costs
Big vs. small farmers
Environmental problems
Consequences for international trade
Food safety concerns
Income support
More costly over the medium term
Set-asides
Rural development

7. CAP reform Pressure from trading partners
Uruguay round: US and agricultural free traders versus the EU
Impetus for reform
Doha Development Round
Environmental and food safety concerns
BSE crisis
2004 enlargement
Phasing in payments

8. Turkey – EU Comparison (2003)
Indicator
Turkey
EU 25
Total Area (Square meter)
769,604
3,973,200
Agricultural Area (1000 hectare)
26,578
163,479
Irrigated Agricultural Area (1000 hectare)
5,215
25,22
Number of Enterprises (1000)
3021
N/A
Average Enterprise Size (hectare)
6,1
Population (1000)
69,884
453,683
Total Employment (1000)
20,811
192,647
Total Agricultural Employment (1000)
6,799
10,082
Ratio of Agriculture on Total Employment (per cent)
32,7
5,2
Ratio of Agriculture on GNP
11,5
1,6
Ratio of Agriculture on Total Export (per cent)
10,3
6,5