The European Union’s Common Agricultural Policy (CAP) has played a major role in shaping the agricultural landscape of the bloc, but its impact has become increasingly problematic. While initially designed to boost food production, protect farmers’ incomes, and ensure food security, the CAP has instead contributed to an agricultural crisis marked by land concentration, environmental degradation, and the decline of small-scale farming.
Recent protests by European farmers have drawn attention to the pressures they face, including climate regulations and trade policies that expose them to global competition. However, a less visible but equally significant issue is the way CAP has reshaped farming in ways that threaten the long-term security of Europe’s food supply.
The policy was originally introduced in 1962 to address postwar food shortages and support farmers through guaranteed prices and protective tariffs. Over time, however, CAP evolved into a system that disproportionately benefits large-scale agricultural operations. Reforms in the early 1990s shifted the focus from price supports to direct income payments based on land area and livestock numbers. This shift encouraged land consolidation, favoring large producers and accelerating the decline of smaller family farms.
Despite later promises to redistribute CAP funds more equitably, a significant portion of subsidies still flows to wealthy landowners and agribusinesses. Between 2018 and 2021, billions in CAP funds were received by a small group of billionaires, even as many small farmers struggled to stay afloat. This imbalance raises serious concerns about whether CAP is fulfilling its original objectives.
Efforts to regulate unfair market practices have also seen limited success. Farmers frequently report being squeezed by powerful supermarket chains that drive down prices while increasing their own profits. Although initiatives have been introduced to improve fairness in the supply chain, the overwhelming market power of large retailers continues to make it difficult for farmers to earn a sustainable income. Some national governments have attempted to intervene by imposing taxes, price controls, and local sourcing requirements, but these measures often clash with EU single market rules, leaving the power structure unchanged.
A growing demographic crisis further threatens the future of European farming. The average age of an EU farmer is now 57, with a significant portion nearing or exceeding retirement age. Meanwhile, only a small percentage of landowners are under 40. CAP’s support for large-scale operations has contributed to this issue, as smaller farms disappear and young farmers struggle to access land. Many retirees retain their farmland to continue receiving CAP payments, creating additional barriers for new entrants into the profession.
The environmental consequences of CAP’s structure are also severe. As landownership becomes increasingly concentrated, intensive farming methods are more commonly used, leading to soil degradation, biodiversity loss, and high emissions. While recent CAP reforms have introduced “eco-schemes” meant to reward sustainable farming practices, these measures often fall short of driving real change. Many governments prioritize weak environmental initiatives that allow for continued subsidies while making minimal progress toward sustainability.
Additionally, a disproportionate share of CAP funding continues to support livestock farming, which is both emissions-intensive and inefficient compared to plant-based food production. This allocation of resources undermines efforts to create a more sustainable agricultural system.
Despite the latest round of CAP reforms aiming to make EU farming fairer and more environmentally friendly, the fundamental issues remain unresolved. The system still favors large-scale agribusiness, fails to adequately support small farmers, and struggles to address environmental concerns. Without meaningful structural changes, CAP may continue to exacerbate the challenges facing European agriculture rather than resolving them.
