 | | The income of UK farmers has been shrinking despite CAP payments |
Nearly half the money spent by the EU goes to subsidise farmers through the Common Agricultural Policy (CAP). This keeps European farm prices higher than international prices and harms farmers in developing countries. Under recent reforms, money will switch from production subsidies to money for environmental improvements. The new entrants to the EU will get a reduced level of subsidy for many years despite their large farming sectors.
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