Hostname: page-component-7479d7b7d-qlrfm Total loading time: 0 Render date: 2024-07-12T02:16:33.970Z Has data issue: false hasContentIssue false

The Performance of British Agriculture and the Impact of the Common Agricultural Policy: An Historical Review

Published online by Cambridge University Press:  22 January 2009

Extract

United Kingdom (UK) accession into the European Economic Community (EEC), which became a political likelihood in 1970 and an actuality in 1973, led to a major change in agricultural policy away from a deficiency payments system supporting farmers' incomes towards the Common Agricultural Policy (CAP) method of assistance through farm prices above the market level. Such a basic alteration in government activity not only imposed well-known and thoroughly researched costs on the British economy in the form of higher food prices and an additional burden of protection, it also undermined dominant post-1945 historical trends.

Firstly, it reversed a thirty year old process towards greater British self-sufficiency Between 1938 and 1946 UK agricultural production rose in value from 42% to 52% of the country's food imports, while under the deficiency payments scheme, permanently established in peacetime by the 1947 Agriculture Act, the proportion of UK food consumption supplied by domestic producers grew steadily until it reached a level of just under 72% in 1972. EEC membership, involving compulsory adoption of the CAP, initially reversed this movement; British agricultural self-sufficiency fell to 66% in 1977, the year when the Common External Tariff (CET) was first applied in full. The higher import bill that inevitably resulted imposed a severe strain on the UK balance of payments, estimated by the pro-market. Heath government in 1970 at a net annual deterioration in the range of 18% to 26%.

Type
Research Article
Copyright
Copyright © Cambridge University Press 1990

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Australian Bureau of Agricultural Economics. 1985. Agricultural Policies in the European Community Their Origin, Nature and Effects (Sydney).Google Scholar
Cmnd. 4289 1970. Britain and the European Communities. An Economic Assessment (London).Google Scholar
European Community Commission. 1980. Reflections on the Common Agricultural Policy (Brussels).Google Scholar
Godley, W., McFarquhar, A. and Silvey, D 1977 The Cost of Food and Britain's Membership of the European Economic Community (Cambridge).Google Scholar
Jay, D 1975. ‘Alternatives for Britain’ Spectator (London).Google Scholar
Josling, T and Hamway, D 1972. Distribution of Cost and Benefits of Farm Policy (London).Google Scholar
Kaldor, N. 1971. The Dynamic Effects of the Common Market (London).Google Scholar
Labour Common Market Safeguards Committee. 1988. Trade Industry and Employment (London).Google Scholar
Marsh, J. 1977 Europe's Agriculture. Reform of the Common Agricultural Policy (London).Google Scholar
National Consumer Council. 1988. Consumers and the Common Agricultural Policy (London).Google Scholar