The Common Agricultural Policy (CAP) made simple : cutting out red tape.
Date: 2010-12-09
Institutions: Directorate-General for Agriculture and Rural Development
Subjects: administrative formalities, administrative transparency, common agricultural policy

Why simplify the CAP?

Who really understands the CAP?

Farmers?

Food businesses?

Politicians?

Civil servants?

You?

The CAP is a dynamic policy. It developed its rules and regulations 
over 50 years. Many of these applied across different farm sectors 
and had to accommodate different interests. They had to deal 
with conditions that vary among the 27 EU Member States. In the 
process, compromise often won out over simplicity and clarity. The 
time came to reverse the trend.

The  CAP  has  now  changed  greatly  since  the  early  years.  Old 
systems to help European agriculture have been replaced by 
more straightforward tools. The main tool is no longer market 
management. Instead we look after our farmers with direct aid 
payments, and support market prices only when really necessary.

CAP simplification has been going on 
for a number of years. This action was 
reinforced in 2009. Those who work 
within the CAP, and those who make it 
work, can more easily live with today’s 
policy. We are all affected by the CAP. 
Now we can better understand how 
it works for us.

Is simplification making a difference? 
We asked three professionals to tell us.

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The EU is making the CAP simpler, clearer and more efficient

Agriculture is the EU’s biggest common policy. It takes a lot of managing. But the EU is trying to make 
the CAP as simple as possible. This helps Europe’s farmers and consumers, as well as those in charge of its 
everyday management.

That’s why we are:
• Reducing the number of rules
• Cutting paperwork and other ‘red tape’
• Making inspection of premises more efficient
• Weeding out waste and duplication
• Writing rules in clearer language
• Improving the way we communicate, especially with the general public

These changes make life simpler for farmers, food businesses and civil servants. Taxpayers can see more 
clearly how their money is spent. Accountability is improved. Making things simpler is plain common 
sense – and good business management.

For further information go to:

http://ec.europa.eu/agriculture/index_en.htm
http://ec.europa.eu/agriculture/simplification/index_en.htm

Directorate General for Agriculture 
and Rural Development

http://ec.europa.eu/agriculture/

http://bookshop.europa.eu/

The text of this publication is for information 
purposes only and is not legally binding

© European Union, 2010

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The Common Agricultural 
Policy (CAP) made simple
Cutting out red tape

European Commission
Agriculture and
Rural Development

 
 
 
 
 
 
 
 
Is the CAP simpler for farmers?

The food chain is a winner too

Simpler administration

Today’s CAP focuses on supporting farmers’ incomes directly. For 
many agricultural products it no longer guarantees fixed prices. 
This means that, these days, farmers are the direct recipients of 
CAP assistance, mostly via a single farm payment. Farmers know 
that they will receive this basic payment and can build it into their 
business plans. This way, they are able to respond more quickly to 
market opportunities.

We  talked  to  Pekka  Pesonen,  Secretary-General  of  the  body 
representing EU farmers and farm cooperatives (COPA-COGECA). 
We asked him how farmers benefited from simplification.

Pekka Pesonen

“Simplification 
is one of the 
single biggest 
changes we talk 
about within 
the CAP”

The way Pekka Pesonen sees it:

The main benefit has been the move to the single payment 
itself. In the past, there were many different schemes. 
Now farmers receive CAP payments no matter how much 
they produce or what they produce. This has brought 
more dynamism to the farming sector. Farmers can now 
better switch products or methods according to market 
signals, without fear of losing aid. Farmers can now opt 
for something different that may bring better economic 
results to them. This flexibility has really been put into a 
good use during recent agricultural market disturbances. 

Many benefits of simplification have been seen in the 
administration of the CAP.

There have also been some positive results for farmers’ 
businesses. There have been changes in how the single 
payment system is applied. There is now more tolerance 
of minor errors by farmers, for example in complying 
with environmental, animal health and welfare rules, in 
recognition that farmers are not used to this and need time 
to learn new requirements.  This has motivated farmers. The 
system has become simpler and fairer.  Of course farmers 
would like to see the CAP further simplified. One way would 
be to ensure that data collected for CAP purposes is among 
the information already gathered by farmers as part of 
their daily business activities. Administrative requirements 
could then be easily fulfilled while farmers would use the 
same data for farm management and business planning 
purposes. The more this is done electronically, for instance 
with livestock, the better.

Most people think the CAP is just about farmers.

But other parts of the agri-food chain are involved too. Simplifying procedures and paperwork 
helps all those involved – traders, processors, food wholesalers, retailers and consumers – to a 
greater or lesser degree.

We spoke to Jean-Luc Mériaux, Secretary-General of the European Livestock And Meat Trading 
Union (UECBV), an important link in the food chain. He told us that a simplified CAP has reduced 
costs significantly in his sector.

The officials who make the policy work on the 
ground should also have their say.

We asked Jens Hauge Pedersen, (Special Advisor 
EU-affairs,  Ministry  of  Food,  Agriculture  and 
Fisheries, Danish Food Industry Agency) whether 
he and his colleagues have seen real changes in the 
way they work, as a result of CAP simplification. Put 
simply, has life become simpler for administrators?

Jean-Luc Mériaux

“Identifying 
unnecessary 
administrative 
burdens was a 
crucial step for 
business operators 
in the EU”

What Jean-Luc Mériaux said:

Right from the start, business operators within the UECBV stressed the need for a clear 
definition of what simplification meant so that all parties involved worked on the same basis, 
and because talk of simplification had raised expectations. In practice the meat sector has 
seen a clear reduction in the amount of its paperwork. The decision to remove the need for 
export licences where no export subsidy is involved, and import licences where no import 
quota exists, is a practical and welcome move made at the UECBV’s suggestion. These 
measures have reduced the burden of paperwork and financial transactions for traders. 
The savings are estimated to be around €16 per tonne in the case of export licences, and 
€3/tonne in the case of import licences. The savings come from reduced administration 
costs and lower bank guarantees and other financing charges.

The European Commission's consultation process, which preceded recent simplification 
moves, gave stakeholders the opportunity to identify genuine administrative burdens, to 
share our practical experience and present suggestions to the Commission. The simplification 
process should not stop here. For example, the adoption of electronic online methods in 
current business practices obviates the need to submit paper documents and would reduce 
duplication. Simplification of labelling rules would also be hugely beneficial.

Jens Hauge Pedersen

”Moving to a system 
of direct payments 
to farmers has had a 
tremendous impact 
on the administration 
of the policy”

Jens Hauge Pedersen’s view:

Seen in context, the move from market management to direct payments 
made directly to individual farmers was a centrepiece of the reform of the 
CAP in the 90´ties. This was a political choice with, dramatic administrative 
consequences. The number of our ‘customers’ in Denmark increased from 
400 specialists in the agri-food sector to over 70 000 farmers and the 
administrative burden increased for everybody. In the recent CAP reform 
these direct payments were changed into the Single Payment Scheme. 
However, there has been a number of efforts to simplify this administration. 
Colleagues and customers learnt fast and now understand the single 
payment scheme much better, anticipating many problems before they 
arise. Dealing to-day with 90% of farmers’ applications online simplifies 
things very much. Fewer mistakes are made, corrections do not have to go 
via ‘snail-mail’, and farmers receive their money more quickly than before. 
Communication with farmers is much improved.

Setting a minimum size for farms benefiting from the single payment 
reduces the administrative burden on organisations like mine. Abolition 
of set-aside (whereby farmers left part of their land uncultivated in order 
to limit production) has reduced the administrative burden on farmers 
and civil servants alike. The single payment also lends itself to use of 
information technology. 

Operating the remaining market management measures is also simpler. 
Several previous licence obligations and forms have been eliminated 
and a container tracking system has been introduced. Overall, the CAP 
is contributing its share of the 25% reduction in administrative burdens 
which the EU has pledged to obtain by 2012.

Let's not forget that simplifying the CAP is harder than it seems. The CAP 
covers 27 Member States. Decisions are often compromises reached after 
long negotiations under tremendous time pressure. Consequently, the 
continuation of the simplification process is of paramount importance.