Understanding Food and Agriculture – Agriculture Policy
Protection from competition is a positive aspect because farmers have priority in supplying the European Union.
However, the income problems are not resolved as the income inequalities within agriculture widen.
Prices were increased due to the pricing policy. However, this policy failed because the increases did not bring enough profit for the small businesses and the large, thriving businesses made an even higher profit.
For the state:
The state saves subsidies because consumers pay through the prices for protecting agriculture. But the state has to spend billions on it because eliminating overproduction is very costly. Without the agricultural market, there would be no EU. The common agricultural market is essential for important EU partners. However, protectionism is questionable. The EU’s self-sufficiency is disrupting world trade.
Consumers are safely supplied, and protecting agriculture promotes EU self-sufficiency. But, consumers pay twice
-As a consumer for price support and
-As a taxpayer for surplus disposal.
Prices don’t go up and down, which means a relative price rest for consumers.
Competition is eliminated because cheaper world market offers are not used.