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Lookup NU author(s): Emeritus Professor David Harvey, Dr Atilla Jambor
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The debate on direct payments and the future of CAP is at a critical stage. A review of the current literature on direct payments strongly suggests that they are unsustainable as effectively unconditional and universal support. As a consequence, their eventual and effective elimination appears inevitable, despite the likelihood that they will be continued in some form post-2013. The Bond scheme is worth serious consideration as a potential bridge between the European Commission’s present options for CAP reform. Using the Bond allows for the removal of an obsolete policy instrument from the CAP while providing the opportunity and the financial basis for farm families to adjust, either within or outside agriculture. This option would also provide clear indications of where more targeted support and environmental payments are required. We argue that until markets are allowed to adapt and adjust to a substantially less supported future, the SFP policy will continue to generate wasteful argument and political debate. It will also continue largely unproductive, unjustified and illegitimate assistance, while doing nothing to reduce the long-term uncertainty which threatens to cripple the EU farm sector.
Author(s): Harvey D, Jambor A
Publication type: Article
Publication status: Published
Journal: EuroChoices
Year: 2011
Volume: 10
Issue: 1
Pages: 17-22
Print publication date: 21/04/2011
ISSN (print): 1478-0917
ISSN (electronic): 1746-692X
Publisher: Wiley-Blackwell Publishing Ltd.
URL: http://dx.doi.org/10.1111/j.1746-692X.2011.00187.x
DOI: 10.1111/j.1746-692X.2011.00187.x
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