In 1999 the CAP spent about 65 % of its money on direct aids (hectare payments, livestock payments, production aid), about 27 % on market support and only about 7% on the second pillar of the CAP which includes measures for rural and environmental development. That means that over 90 % of the CAP budget strongly favours large, industrial high output farms, because payments are dependent upon production, number of animals and amount of hectares. The subsidy system actively encourages farmers to maintain intensive forms of agriculture, which causes huge environmental problems and social inequalities among farmers.

A report from the European Commission, published in October 2002, shows that:

less than 2000 producers receive more than 300 000 €

about 50 % of beneficiaries receive less than 1 250 €

about 5 % of beneficiaries receive 50 % of payments

• In 2000, 3.1 million farmers in 14 EU member States received a total of 20,7 billion Euro in direct income support (numbers exclude Greece)
• half of this amount went to 22,000 very large farms
  
• approximately 4,4 million farmers receive income support within the 15 EU countries
  
• In 2000, approximately 1650 very large farms, almost all of them in East Germany, received more than 300 000 Euro in subsidies
  
• France received almost one quarter of all direct payments, making it the largest receiver of European Agriculture support, and the most ardent opponent of reform
  
• Other large receivers are Germany, Spain, Italy and Great Britain
  
• Net payers, such as The Netherlands, Belgium and Germany are more receptive to reform plans

This report is available online

Did you know: At least one-quarter of the CAP budget is paid to processors, exporters and other organisations rather than to the producer (from: The CAP: How the CAP operates, the key commodities, competitors and markets for the European Union, UK Food Group and Sustain, 2002)

source: EU

See the latest figures for Agriculture spending in the EU.