Making the EU’s Common Agricultural Policy coherent with development goals
ODI Briefing Paper
The EU Common Agricultural Policy (CAP) aims to promote agriculture throughout the EU by increasing farmers’ incomes and supporting the provision of public goods such as the environment. It is funded from the European Commission (EC) budget and accounts for roughly 40% of total EC expenditure. It is divided into two pillars. Pillar 1 includes both direct payments to farmers and market management measures. Pillar 2 focuses on improving the structural and environmental performance of agriculture and on promoting local/rural development. Pillar 2 requires Member State co-financing.
The EU has recognised that making development policy in isolation is not sufficient. Its commitment to Policy Coherence for Development seeks to ensure that all policies, not only development assistance, promote growth in developing countries. Any decision on CAP reform options must, therefore, be analysed against development goals.