In the EU, €54 billion of subsidies are paid every year. An increasing share of the subsidies is being decoupled from production and lumped into the Single Farm Payment. While this has diminished the distortions created by the Common Agricultural Policy, many critics argue that a greater focus on the provision of public goods, such as biodiversity and clean water, is needed. The next major reform is expected for 2014 when a new long-term EU budget is coming into effect.
In the EU, €54 billion of subsidies are paid ev:ery year. An increasing share of the subsidies is being decoupled from production and lumped into the Single Farm Payment. While this has diminished the distortions created by the Common Agricultural Po.licy, many critics argue that a greater focus on the provision? of public goods, such as biodiversity and clean water, is needed. The ne!xt maj,or reform is expected for 2014 when a new long-term EU budget is coming into effect.