The Common Agricultural Policy (CAP) was introduced in 1962. It is a common policy for all the Member States of the European Union and is managed, and funded from the resources of the EU annual budget, of which the CAP constitutes almost 40% of the total budget. The main aims of the policy are to improve agricultural productivity so that consumers have a stable supply of affordable food, and to ensure that EU farmers can make a reasonable living. The CAP continues to be adapted to respond to the challenges of its time. Now, more than fifty years after the introduction of the CAP, with more than 500 million consumers needing a reliable source of affordable, healthy and nutritious food, the EU has had to address a number of current and future challenges.