Stop this madness...right now!

The purpose of the Campaign for the Eradication of Agricultural Subsidies in Europe, (CEASE) is to provide a platform upon which to bring together and organise voices opposed to the EU’s Common Agricultural Policy (CAP).

What exactly is the problem with the CAP? Under the current system European farmers are subsidised with EU taxpayers' money to the tune of €45.5 billion per year (2005 figure). This represents over 40% of the EU's total annual budget and amounts to about €100 per EU citizen. The system started as a way of ending food shortages after WWII, a problem that does not seem particularly acute in the EU today. Today, subsidy payments are distributed on an increasingly unequal basis, with more and more of the money landing in the hands of large multinational companies, rather than small family farmers as people often assume.


The system works by guaranteeing producers a minimum price for agricultural goods like milk, butter and sugar. This price is normally significantly above the world market price. Farmers also receive subsidies depending on the amount they produce, although this system is currently being replaced with single payments that are 'decoupled' from production. However you look at it though, the fact is that EU producers receive unfair support meaning they enjoy lower production costs than their competitors in other parts of the world.

So what is the result of all this? The system is quite simply an example of terrible economics. We support farms (often large multinational companies) that would be unable to turn a profit if it wasn't for generous subsidy payments. EU governments keep prices within the member states up by buying large amounts of the products themselves. This results in the over-production of goods since producers don't have to play by the normal market rules. These surpluses (of e.g. milk and sugar) are then 'dumped' on foreign markets at below cost price (by means of export subsidies). This floods those markets with cheap subsidised goods causing local producers to go out of business. When you think that the markets in question are mostly those in poor, developing countries, where a large proportion of the population depends on agriculture to make a living, the consequences of this madness are devastating and can even lead to starvation.

All very well you might say, why don't we simply buy more goods from outside the EU? The increased competition is sure to eventually force prices within the EU down as well as help poor farmers in developing countries, right? Think again. Not only does the EU dole out unfair subsidies to its farmers with one hand, it uses the other to close the door on products from outside the EU. Agricultural goods from other countries are subjet to import tariffs. What this basically boils down to is that, when imported, agricultural goods are subject to a duty which ensures that they will not be competitive against our domestic (subsidised) produce. This is, to a large extent, the sticking point in the ongoing Doha Round of WTO negotiations. A further consequence is of course that consumers inside the EU have to pay higher prices. Yes, you heard correctly, EU producers are subsidised with our money and we have to pay higher prices! That's a two-handed economic slap in the face for every EU man, woman and child!

What can we do about this? Just like beating alcoholism, the first step is to recognise that we have problem. This blog is obviously not the first place the problem has been recognised. NGOs like ActionAid and Oxfam have, for a long time, campaigned on the issue. Guardian columnist Victor Keegan has also been drawing attention to what is happening with his blog KickAAS and, more recently, the sterling work of farmsubsidy.org has been lifting the veil of secrecy surrounding CAP payments and shedding light on exactly who gets what. So why are subsidies still being payed out? It's time to take a stand and unite on a single platform with one voice, reach out to citizens across Europe and target the campaign at those who make the decisions. This won't be easy. Although only a very small minority benefit under the current system, the farming lobby is a formidable force. It is hoped that CEASE will do to agricultural subsidies something like what the Jubilee movement has done for third world debt. I promise to come back shortly with a 'to do list' to this effect. In the meantime I am hoping this blog will act as a portal to engage with other interested people, stimulate the debate and (hopefully) lead to the formation of a trans-European army of anti-CAP activists!

Although the winds of change are starting to blow through the corridors of Brussels (with a total decoupling of payments promised by 2013) it is the opinion of this blog, as the name suggests, that the system of farm subsidies should CEASE completely. "That's imposible" you might exclaim "surely our countryside will go to ruin and there will be millions out of work". Well, here's some food for thought (excuse the pun); there is already one developed country that has totally abolished farm payments, namely New Zealand. Considering one of the first things one associates with the Kiwis is their lamb, as well as the fact that there are colossal distances between their producers and foreign markets, I think it's fair to say that if they can do it, so can we!

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