The Common Agricultural Policy and French Agriculture

The EU's Common Agricultural Policy (CAP) profoundly shapes French agriculture, providing €9 billion annually in subsidies—nearly 20% of sector revenue. The CAP's evolution from production support to environmental and rural development objectives drives significant changes.

Subsidy Distribution and Debates

CAP payments remain controversial, with large cereal farms receiving disproportionate support while small diverse operations struggle. Recent reforms attempt rebalancing:

- Capping payments to the largest recipients - Increased support for young farmers and new entrants - Eco-schemes rewarding environmental practices - Coupled support for vulnerable sectors like sheep farming - Rural development funds supporting diversification

Post-2020 CAP Reform

The latest CAP reform introduces "green architecture" requiring environmental commitments for subsidy receipt. French implementation includes:

- 25% of direct payments tied to eco-schemes - Support for organic conversion and maintenance - Payments for carbon farming practices - Funding for precision agriculture adoption - Investment aid for renewable energy projects

These changes accelerate agriculture's environmental transition while creating adjustment challenges for traditional producers.