Timeline - History of the CAP

The post-2020 reform of the CAP aims to introduce a new strategic approach, giving member states the autonomy to put together strategic plans based on their needs and in line with EU-wide goals. This means that measures at national level can be better targeted to local specificities without undermining the overall 'common' nature of the policy.

In a context of growing public concern about climate change and environmental challenges, the new CAP places a special focus on green requirements. Funding, as before, is made conditional on compliance with EU environmental and climate laws. In addition, the reform introduces various rewards for greener practices, both as part of the direct payments (with a new type of support for green measures, the 'eco-schemes') and under rural development.

In addition, smaller farms and young farmers are considered priority recipients of direct payments. For the first time, the CAP also includes a commitment to protecting workers' rights.

• Common agricultural policy 2023-2027 (background information)

The new millennium brought new challenges for the CAP. Not only did it need to ensure a well-fed and thriving society,  it also had to respond to new concerns such as climate change, animal welfare, food safety and the sustainable use of natural resources.  

The 2013 reform tried to address these demands by including:   

• greening of payments, making agriculture more sustainable  
• more equal distribution of support, limiting the budget for big farms 
• additional support for smaller farms through better targeting of income support
• incentives for young people to embark on a career in farming

In addition, the reform brought about a boost in spending on rural development projects. 

This was the first time that a CAP reform was carried out under the ordinary legislative procedure, introduced by the Treaty of Lisbon, where the Council co-legislates with the European Parliament on an equal footing. 

• Reform of the common agricultural policy post 2013 (archive)

After almost 40 years, the CAP’s budget still amounted to almost 50% of the total EU budget, while the agricultural sector provided fewer possibilities for creating new jobs than other sectors on the rise, particularly the services sector. 

In this context, and in anticipation of the future 2004 enlargement, the new 'Agenda 2000' programme led to the creation of a second pillar of the CAP dedicated to rural development.  

Agenda 2000 offered a more holistic approach to agriculture and rural development with the aim of improving agricultural competitiveness, providing alternative sources of income in rural areas and strengthening social cohesion in those areas. 

In 1992 the first large-scale reform of the CAP was adopted, the aim of which was to reduce the overall budget and move away from unlimited guaranteed prices. The policy shifted from a market support system to direct income support for farmers, and included new obligations for farmers to protect the environment and incentives to improve food quality. 

Direct payments to farmers were introduced for the first time, based on the area of land cultivated or number of livestock maintained.

During the 1970's and early 80's agricultural production started to exceed demand. This led to surpluses such as the so-called 'butter mountains' and 'wine lakes'. The result was that food was either dumped or sold on the world market at much lower prices. 

To prevent excessive drops in farmers' income, in 1984 the EU introduced a quota system for products such as milk to limit overproduction and manage supplies. Each producer would receive a quota representing the amount of food they could produce. A levy would be due from those who exceeded the quota.

At the same time, there was growing pressure from external actors that accused the European Communities of over-protectionism and called for the liberalisation of the market. 

As the years went by, food productivity and availability increased. However, the income of farmers remained stagnant despite the support they received from the policy.

Given the situation, Sicco Mansholt, then European Commissioner for Agriculture, predicted that market imbalances could arise from over-production and price support.

He therefore proposed a wide-scale modernisation of the agricultural sector in an attempt to improve the standard of living of farmers and avoid market distortions.

The Mansholt plan, the first reform of the CAP, aimed to:

• optimise the area of land under cultivation
• merge farms to create larger units 

Following the devastation of World War II, Europe took decisive steps towards a peaceful and united future.   

To restore the social and economic fabric, the six founding countries of what was then the European Communities began talks on a common approach to agriculture. The farming sector played a significant role in the post-war European economy yet it was characterised by: 

• low food production, in part because of the war
• income for farmers that was much lower than in other sectors
• the need to provide easy access to food and raise productivity   
• non-harmonised national farming policies, leading to differences in competition conditions

In 1962, the CAP was introduced with the following aims:  

• increasing agricultural productivity 
• ensuring a fair standard of living for farmers 
• guaranteeing the availability of supplies 
• stabilising the markets
• establishing a secure supply chain with reasonable prices 
• harmonising competition rules across all countries

To achieve these goals, an economic system of price and market support was put in place. This mechanism provided farmers with a guaranteed price for their products, introduced tariffs on external products and introduced state intervention in case market prices fell. Farmers received support according to their total levels of production.

• Consolidated Treaty on the Functioning of the EU: title III, articles 38-44 on agriculture and fisheries