The European Union’s Council of Ministers has agreed on a reform of the Common Agricultural Policy (CAP) support for tobacco, olive oil and table olives, cotton and hops.

“These reforms will lead to enhanced competitiveness, stronger market-orientation, improved environmental respect, less trade distortions and stabilised incomes for farmers,” the European Commission said.

For the four sectors concerned, a significant part of the current production-linked payments will be transferred to the decoupled single payment.

For olive oil, the Council decided that member states may maintain a coupled payment of up to 40%. A minimum of 60% of the average current production-linked payments during the reference period 2000-2002 (€2.3bn per year for the EU15) will be converted into entitlements under the single payment scheme for holdings larger than 0.5 ha.

Olive farms smaller than 0.5 ha will see their payments completely decoupled from 2006, the Commission said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The remaining aid paid (40%) can be retained by the member states as national envelopes to grant producers of an additional olive grove payment.

For further details, click here.