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CAP expenditure and CAP reform path
(2007 constant prices)
Source: European Commission - DG Agriculture and Rural Development
EU-10
EU-12
EU-15
EU-25
EU-27
Sources:   European Commission - DG Agriculture and Rural Development (Units I.1/L.1) and DG Economic and Financial Affairs (AMECO database)/Eurostat
Updated:   18.10.2010

Annual expenditure, in 2007 constant prices.

This graph shows how the CAP has evolved through the evolution of the CAP expenditure.
•In the 80s the expenditure was mainly due to price support through market mechanisms (intervention and export subsidies).
•In the end of the 80s this expenditure in market mechanisms boosts due to the agricultural surpluses.
•In 1992 there is the first big shift, due to the Mac Sharry reform. The market mechanisms (in red and yellow) are reduced and replaced by direct payments (in blue). These payments were paid per hectare or per animal. Thus price support is replaced by producer support. Finally, spending on rural development measures also increased (in purple).
•In 2003, one can see the impacts of the 2003 reform, with direct payments shifting to decoupled payments (green). Payments are no longer paid per ha or per animal but paid in function of what the farmer received in a reference period. Spending in rural development also increases.
•Spending as been stabilized and despite the successive enlargements, the overall spending as a share of the GDP has actually decreased in nominal terms: 0.5% of GDP in the 80s to 0.4% now (graphic line).

•Stable expenditure level since mid-1990s despite enlargements
•Significant shift from market expenditure to direct payments and increased expenditure for rural development
•Decreasing share of CAP in GDP. However, slightly increasing in 2009 due to economic crisis (-5% in GDP of EU-27)