Price Policies Have Wider Range Of Destructive Demerits

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CAP with
its emphasis on price reform, in comparison with the post-1992 CAP which
was oriented to structural reform.

It cannot be denied that there were merits of the pre-1992 price
reform policy. There was a bountiful food supply with an increased variety
and quantity of food. Farmer's yields increased, particularly the large
farmers. Producers were protected from the external market due to community
preference and, therefore, domestic agriculture could develop. There were
also spin offs in food production. Although some of the policies created
good returns for farmers, the demerits of said policies far outweighed any
advantages they had. The core-periphery divide was widened, quantity became
more important than quality and consumers had to pay higher prices.
Agricultural practices caused damage to the environment and international
trading relations were strained.

Until 1993 the EU rarely supported farmers by paying them direct
subsidies from the taxpayers. (4) Instead the 30 ...

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was never
established, had more disadvantages than advantages. They allowed the real
level of prices to vary from country to country. This led to the distortion
of production as farmers in the countries which have strong currencies,
were paid more than farmers in countries with a weak currency. MCAs are
also expensive to operate. MCAs were replaced in 1979 by the European
Currency Unit (ECU) as part of the European Monetary system (EMS) which had
been introduced in 1978. (8) An agricultural ECU which was 14% more
valuable than the ECU was introduced. Until 1993 and 1995, when adjustments
were made to this, vast amounts of officials were needed every day to
administer the agri-monetary ...

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