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Abstract

The impact on consumers no longer seems to constitute the main criticism of the agricultural policy, and farm prices have not been at the origin of inflation. The impact on taxpayers is more crucial as the price support is becoming more and more expensive without solving the problems of farm incomes ; in the particular context of the EEC budget, the cost of the CAP has become a major policy problem. The agricultural policies, including the CAP, do not aim to guarantee farm incomes. The price support remains their most important instrument although it mostly favours big farms and thus does not reduce disparities within the farm sector. The result of structural measures has been limited. The agricultural production potential remains important and with a considerable amount of imported animal feed still exceeds the absorption capacities of the EEC home market. Exports should be developped through a more coherent policy but such actions are subject to constraints of international trade obligations. The trends on the world markets will therefore become more and more important for the agriculture of Western Europe.

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