Agricultural subsidies are distributed in accordance with the Common Agricultural Policy (CAP) which is characterised in the press as having a seemingly high cost.
During the early years of the EU’s existence the CAP did represent a significant proportion of budget expenditure, over two-thirds on occasions. Now the CAP costs about EUR 55 billion per year. This represents 40 % of the total EU budget, less than 0.5 % of GDP in the EU. Not only is the share of the CAP in EU GDP declining, but this share is also declining much faster than EU public expenditure.
The CAP’s cost should also be seen in context. Unlike for other sectors, such as education, defence, transport, health care or social security, whose cost is borne by national governments, the Member States have agreed that decisions about the EU's agricultural policy be taken at community level, and that an appropriate budget be put in place to do this.
The annual £3.0 billion cost of agricultural subsidies in the UK can also compared to Government expenditure where it represents just 0.5% of the total:
Statistics for Agricultural Subsidies
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
|
| Value peas incl subsidies (£ millions) |
40 | 47 | 42 | 44 | 30 | 15 | 11 | 14 | 12 | 12 | |
| Beans value incl subsidies (£ millions) |
74 | 95 | 89 | 105 | 103 | 65 | 59 | 65 | 73 | 83 | |
| Cattle subsidies (£ millions) |
899 | 831 | 929 | 928 | 1016 | 196 | 68 | 47 | 47 | 20 | |
| Sheep subsidies (£ millions) |
337 | 184 | 284 | 233 | 262 | ||||||
| Crop subsidies (£ millions) |
943 | 830 | 888 | 980 | 913 | 16 | 17 | 13 | 8 | 14 | |
| Livestock subsidies (£ millions) |
1244 | 1093 | 1213 | 1230 | 1425 | 197 | 68 | 47 | 47 | 20 | |
| Set Aside subsidies (£ millions) |
127 | 180 | 143 | 177 | 131 | ||||||
| Compulsory slaughter compensation (£ millions) |
25 | 19 | 20 | 17 | 21 | 26 | 21 | ||||
| LFA (least favoured area) subsidies (£ millions) |
165 | 165 | 160 | 153 | 146 | 143 | 131 | 138 | 139 | ||
| Agri-environment subsidies (£ millions) |
153 | 198 | 236 | 223 | 257 | 288 | 377 | 460 | 486 | 472 | |
| Total subsidies less levies etc (£ millions) |
2404 | 2407 | 2616 | 2796 | 2982 | 3030 | 2988 | 2983 | 3285 | 3615 | |
| Single Farm Payment (£ millions) |
2365 | 2366 | 2311 | 2580 | 2948 |
User comments - post a comment
Submitted by: Melanie Horridge on 2011-05-03 15:56:22.0
Location: Ainsdale, Merseyside
Comment: Is it fair to farmers that local councils are allowed to apply, let alone receive the High Level Stewardship grant?Our small local nature reserve is being turned into farmland, so that the council can claim approximately 100,000 pounds for a 10 year period. Sefton council are cutting down all the trees, scrub, and shrubs. Then they plan to put up over 13 miles of stock fencing for grazing sheep. Then apply for HLS grant.
Email: melsescape@excite.com
