catholicgirl
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About ten years ago, European Common Agricultural Policy (CAP) underwent a major change. Rather than setting a price floor on agricultural products, now CAP directly subsidises farmers. Subsidies may be a flat rate payment for maintaining land in cultivatable conditions (currently around £250 per hectare in England), or may depend on the land’s crop in a given past year, which is taken as reference point (as in Scotland). Discuss the effects of such a policy move.
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Mike_123
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(Original post by catholicgirl)
About ten years ago, European Common Agricultural Policy (CAP) underwent a major change. Rather than setting a price floor on agricultural products, now CAP directly subsidises farmers. Subsidies may be a flat rate payment for maintaining land in cultivatable conditions (currently around £250 per hectare in England), or may depend on the land’s crop in a given past year, which is taken as reference point (as in Scotland). Discuss the effects of such a policy move.
Look at the diagrams of a price floor vs a subsidy - they have different effects
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