Press Release: New Common Agricultural Policy in place on 1 January 2005

From 1 January 2005, 10 Member States will introduce the fundamental reform of the Common Agricultural Policy (CAP) agreed in June 2003. The reform completely changes the way the EU supports its farm sector, offering EU farmers the freedom to produce what the market wants. In future, most subsidies will be paid independently from the volume of production. These new 'single farm payments' will be closely linked to the respect of environmental, food safety and animal welfare standards. Severing the link between subsidies and production will make EU farmers more competitive and market orientated, while providing the necessary income stability. More money will be available to farmers for environmental, quality or animal welfare programmes by reducing direct payments for bigger farms.