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Share of direct payments and total subsidies in agricultural factor income

Share of direct payments and total subsidies in agricultural factor income

Figure 4 – Share of direct payments and total subsidies in agricultural factor income

Further insight into the future direction arising from this exercise for the CAP is outlined in Commissioner Hogan’s speech at a Farm Europe event on 7 February 2017. Three priorities in respect of the simplification and modernisation agenda were identified: (i) the Commissioner’s desire to maintain basic income support and an effective safety net through direct payments; (ii) the principle of a more sustainable system of agricultural production; and (iii) progress on generational renewal. In respect of direct payments, Hogan indicated that, without such payments, ‘the viability of perhaps tens of thousands of farmers would be seriously compromised’. Figure 4 illustrates the dependence of EU farms on public support. Although the EU average share of direct payments in agricultural factor income in 2010-2014 stood at 28 %, there are considerable differences between Member States. These range from 15 % or less in Cyprus, Malta, the Netherlands, and Romania, to more than 40 % in Ireland, Luxembourg, Slovakia, and Sweden. Commissioner Hogan’s speech also highlights the role of farming in addressing climate change, and the issue of generational renewal.

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