By Zhang Yunhua, Zhao Junchao & Yin Haodong, Research Team on “Strategic Adjustment of Agriculture in the Context of High-level Opening-up”, Research Department of Rural Economy, DRC

Research Report, No. 38, 2020 (Total 5782) 2020-3-17

Abstract: The European Union implements a unified agricultural policy in its member states, known as the common agricultural policy (CAP). Over the past 60 years since it was initially put into effect by European Economic Community (EEC), this policy has undergone three rounds of major reforms and several adjustments, showing some significant features. First, the policy effect for bolstering market performance is gradually phasing out; second, agricultural subsidies are shifted from an output-connected mode to an output-disconnected one; third, the projects covered by the policy are shifted from supporting agricultural production to comprehensive development of agriculture and rural areas; fourth, agricultural development is evolving toward green and ecological transformation; and fifth, the policy approach is becoming more and more simplified. With regard to agricultural growth and policy making for rural areas, China could draw the following inspirations. First, market support policy and subsidy policy for agricultural products need to overcome the sluggish manner and keep pace with or even take the lead in global market performance. Second, market support policy needs to play a preventive role and cushion the risks confronted by farmers. Third, we need to optimize and simplify the types of subsidies and shift the target of subsidies from agricultural production to farmers’ income. Fourth, we need to broaden our vision on policy coverage and shift our focus from agricultural production output to comprehensive development of agriculture and rural areas in all respects. Fifth, we need to make our policy more forward-looking and promote green and ecological transformation in the development of agriculture and rural areas.

Key words: EU common agricultural policy, transformation trends, inspirations