Large-scale livestock farms have been receiving public funds in spite of confirmedcases of non-compliance with environmental protection regulations (thiswas very common before 2007 and still continues). Public funds includesubsidies in exchange for biological progress in livestock production,grants for research, or subsidies for the purchase of fuel granted bylocal governments. However, the major share of public assistance isgranted under the Common Agricultural Policy (CAP) and the subsidies forfarmers granted under CAP - direct payments for agricultural area(production of specific crops and animals) and financial support forfarmers in Less Favoured Areas (LFA).
TheCommon Agricultural Policy covers all agriculture-related operationstaking place within the European Community with the aim to:
CAPis also focused on increasing competitiveness of the EU agriculture oninternational market, at the same time safeguarding individual earningsof persons engaged in agriculture and the safety of the naturalenvironment. The Common Agricultural Policy is based on 4 major rules:
TheCAP is financed from the European Agricultural Guarantee and GuidanceFund (FEOGA). Expenditure on CAP of over Euro 40 billion annuallyaccount for over 40% of the Total EU budget. 90% of these funds areearmarked for financing the first pillar of CAP ? providing agriculturalmarket and income support (intervention purchases or subsidizedexports, direct payments for producers) for market stability, betterproductivity, and stable earnings. Only 10% of the CAP budget is spenton the second pillar (with 4-5% spent on agri-environmental operations).The second pillar is directly related to the EU structural policy andis intended to level off the development conditions at regional level,secure appropriate living standards for rural communities, supportenvironmental protection, protect local cultural resources, ensureproduction diversification within agricultural holdings, and enforceconformity with high food production standards.
Apartfrom the absence of stable and effective interdependence between theenforcement of environmental protection regulations and gratingfinancial assistance under CAT, and the huge fund-sharing disproportionbetween CAP pillars, the major concern is also that fact that around 80%of direct payments are awarded to only around 20% of beneficiaries.
It would be advisable, at least in the case of large-scale livestock farms, to link direct payments with the livestock size for morepreferential treatment of farmers who adapt the amount of animals to theamount of arable land available.