The Single Farm Payment is an agricultural subsidy paid to farmers in the EU. [1]
Historically, the EU's Common Agricultural Policy (CAP) emphasised direct subsidies for agricultural produce. To reduce price distortion, the connection between payments and specific crops was removed; instead, a "Single Farm Payment", which subsidised farmers on a per-hectare basis, was introduced in June 2003; although farmers may now attempt to claim subsidies for more land than they actually have. [2] This "decoupling" of subsidies means they are accepted in the " Blue box" category of subsidies in the WTO Agreement on Agriculture negotiated at the Uruguay Round, in line with international agreements to reduce market-distorting subsidies and price controls.
National governments within the EU make their own arrangements for implementation and for paying subsidies to farmers. When the UK was a part of the EU, this was done by the Rural Payments Agency, an executive agency of Defra. [3] Some British farmers experienced problems due to delays in verifying how much land they have which is eligible for subsidy. [4]
The Scottish government offered farmers an online system to claim subsidies, which reduces the burden of paperwork. [5]
In non-Euro countries, payments to farmers may be made in local currency at an exchange rate set by the European Central Bank. [6]
Some farmers trade their subsidy entitlements. [7]
The Single Farm Payment is a large proportion of income for many farmers, [8] who say they could not profit without subsidies. [9] [10] However, farm subsidies in developed countries push down food prices and impoverish third-world farmers. Taxpayers in the EU get more than most in return for their money. [11] [12]
In 2010, the EU spent €57 billion on agricultural development, of which €39 billion was spent on direct subsidies. [13]
The Single Farm Payment is an agricultural subsidy paid to farmers in the EU. [1]
Historically, the EU's Common Agricultural Policy (CAP) emphasised direct subsidies for agricultural produce. To reduce price distortion, the connection between payments and specific crops was removed; instead, a "Single Farm Payment", which subsidised farmers on a per-hectare basis, was introduced in June 2003; although farmers may now attempt to claim subsidies for more land than they actually have. [2] This "decoupling" of subsidies means they are accepted in the " Blue box" category of subsidies in the WTO Agreement on Agriculture negotiated at the Uruguay Round, in line with international agreements to reduce market-distorting subsidies and price controls.
National governments within the EU make their own arrangements for implementation and for paying subsidies to farmers. When the UK was a part of the EU, this was done by the Rural Payments Agency, an executive agency of Defra. [3] Some British farmers experienced problems due to delays in verifying how much land they have which is eligible for subsidy. [4]
The Scottish government offered farmers an online system to claim subsidies, which reduces the burden of paperwork. [5]
In non-Euro countries, payments to farmers may be made in local currency at an exchange rate set by the European Central Bank. [6]
Some farmers trade their subsidy entitlements. [7]
The Single Farm Payment is a large proportion of income for many farmers, [8] who say they could not profit without subsidies. [9] [10] However, farm subsidies in developed countries push down food prices and impoverish third-world farmers. Taxpayers in the EU get more than most in return for their money. [11] [12]
In 2010, the EU spent €57 billion on agricultural development, of which €39 billion was spent on direct subsidies. [13]