Open Access BASE2012

The CAP in disarray: EU Commission proposes basic direct payments to EU farmers

Koester, Ulrich

Order using Access(Open Access)

Abstract

Direct payments were originally justified as a mechanism to compensate farmers for the income loss incurred due to reduced intervention prices. However, this rationale is not valid any more, and a new justification for basic income support by granting basic decoupled direct payments has been proposed by the EU Commission. The following paper identifies a number of problems related to this proposal.

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