Agricultural Economics and the CAP

For an industry which accounts for a small and decreasing proportion of the output of the European economy, agriculture gets a large slice of the European Union's budget and accounts for many of the political arguments which beset that organisation. Every family in the European Union has its food prices determined by the EU's Common Agricultural Policy (CAP) and the incomes of millions of farmers across Europe depend on the decisions made by those who control it. Yet few understand why the CAP exists, or on what basic principles it is managed. This book offers a simple and concise guide to the economics (and relevant history and politics) of the agricultural industry and the CAP. Assuming no knowledge of economic theory, it covers the economics of agriculture and provides an intelligible outline of the CAP's main features.