The SGPA (Global Support to Agricultural Production): The Per-capita Farm Support is Close to Three Times Higher in the United States Than in the European Union
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The SGPA (Global Support to Agricultural Production): The Per-capita Farm Support is Close to Three Times Higher in the United States Than in the European Union

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The SGPA (Global Support to Agricultural Production): The Per-capita Farm Support is Close to Three Times Higher in the United States Than in the European Union PR Newswire PARIS, June 26, 2012 PARIS, June 26, 2012 /PRNewswire/ -- The momagri SGPA indicator has come to expose a little known fact:

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The SGPA (Global Support to Agricultural
Production): The Per-capita Farm Support is
Close to Three Times Higher in the United
States Than in the European Union
PR Newswire
PARIS, June 26, 2012
PARIS
,
June 26, 2012
/PRNewswire/ --
The momagri SGPA indicator has come to expose a little known fact:
Agricultural subsidies in the U.S. are quite higher than the figures usually given,
and very largely exceed those granted by the European Union (EU) and its
member-states.
To view the Multimedia News Release, please click:
http://www.multivu.com/mnr/56561-momagri-agricultural-support
In fact, over
$172 billion
[1]
were appropriated in the U.S. in 2010, against €76
billion in the E.U., or €422 per capita in the U.S. against €151 per capita in the
E.U., i.e. close to three times more. This observation goes against stereotypes
claiming that European farmers are the most assisted. And the gap continues
to increase since 2008.
On the other side of the Atlantic, policies aim to stimulate and secure
agricultural output, from farmers to consumers, in a counter-cyclical manner,
i.e. in taking market conditions into account. One other specific feature is
domestic food aid (54 percent of SGPA in 2010), generally considered as a
social subsidy, which in fact represents an active subsidy to the American
agricultural and agro-food sector, and is assessed at more than
$94 billion
. The
ongoing reform-–the
Agriculture Reform, Food and Jobs Act of 2012
-–is
considering changing income protection mechanisms, but is maintaining the
strength of an arsenal of subsidies.
In the E.U., farm support mostly includes direct subsidies for farmers' living
standards (64 percent of SGPA in 2010), especially incorporating the Single
Payment Schemes (SPSs), which account for 47 percent of all farm support
paid in 2010. The support rationale is geared to farmers, but is decoupled from
production and market prices. The European policy thus does not have the
tools to react efficiently to price instability. And the post-2013 CAP reform
proposed by the European Commission makes matters worse, without meeting
the challenges of European farmers.
In the light of this study, momagri calls on European leaders to incorporate in
the future CAP genuine regulatory mechanisms that stabilize prices and
agricultural incomes, while introducing more efficiency in E.U. spending.
Otherwise? The E.U. must take on increased food dependence and all its
consequences in social, financial and political terms. The process has already
begun, since the European Union has by now doubled imports during the past
decade, and seems to import the equivalent of the production of 87 million
acres of farmland, i.e. the size of
Germany
[2]
.
http://www.momagri.org
1. Or €130.5 billion (exchange rate US$/€ 130,5 milliards € = 0.755, as per
OECD, 2010).
2. http://operaresearch.eu/files/repository/20111021145840_Etude-Humboldt-
FR.pdf
Video: http://www.multivu.com/mnr/56561-momagri-agricultural-support