CAP: The Failed Promise – How EU Farm Subsidies Benefit the Rich & Fuel Colonialism

by Chief Editor

The Uneven Harvest: How the Common Agricultural Policy Fuels Inequality and a New Form of Colonialism

For decades, the Common Agricultural Policy (CAP) has been presented as a cornerstone of European rural life, a shield for farmers, and a guarantor of food security. However, a growing body of evidence suggests a far more troubling reality: the CAP is increasingly a mechanism for concentrating wealth and power in the hands of a few, while simultaneously exporting a model of industrial agriculture that undermines food sovereignty in the Global South.

The Concentration of Subsidies: A Broken System

Recent reports, notably from Greenpeace Europe, paint a stark picture. Up to 40% of European agricultural funds are funneled to just 1% of beneficiaries. Italy exemplifies this disparity with shocking clarity: 10% of recipients collect 82% of the subsidies, and the wealthiest 1% secure a staggering 31% of the total resources. This isn’t a glitch; it’s a systemic flaw. The CAP prioritizes land ownership over labor, social impact, or environmental stewardship – effectively a reverse welfare system rewarding those already possessing capital and influence.

This preference for land ownership echoes a long-standing European tradition of valuing rentier income. The system isn’t designed to support working farmers; it’s designed to support landowners.

Bonifiche Ferraresi: A Case Study in Agricultural Finance

Bonifiche Ferraresi (BF), Italy’s largest landowner, embodies this shift. The company has transformed agriculture into a financial and geopolitical platform, extending its reach far beyond national borders. BF’s influence is amplified through its connections to Consorzi Agrari d’Italia and, crucially, Coldiretti, Italy’s largest agricultural association – whose Secretary-General also chairs BF International. This interconnectedness raises serious questions about genuine representation for smaller farmers.

Did you know? Bonifiche Ferraresi controls over 36,000 hectares of land in Italy, making it larger than some small European countries.

The Mattei Plan and the Export of Inequality

Perhaps most concerning is BF’s central role in the Mattei Plan, Italy’s ambitious initiative to redefine its influence in Africa. The company is actively cultivating cereals and legumes in several African nations, framed as cooperation, development, and food security. However, critics argue this is simply an export of the same model that concentrates land and resources in Europe, displacing small producers and emptying rural areas.

While European farms struggle and close, this industrial agricultural paradigm – generously funded by the CAP – is being projected southward, resembling a new form of agricultural colonialism, cloaked in sustainability rhetoric.

The Decline of Small Farms and the Rise of Agribusiness

The numbers are undeniable. Europe has witnessed a 44% decline in small-scale farms, representing the loss of approximately two million businesses. Yet, the CAP continues to consume roughly one-third of the entire European Union budget. This isn’t a sign of a failed policy; it’s a sign of a policy that is working precisely as intended – for those who designed it.

Pro Tip: Look beyond the rhetoric of “supporting farmers.” Examine who *actually* receives the bulk of CAP subsidies in your region.

Beyond the “Common Agricultural Policy”: A Misnomer

The very name “Common Agricultural Policy” is increasingly misleading. It’s not common in its interests, nor is it truly agricultural in its logic. It’s a mechanism for transferring public resources to large landowners, industrial groups, and geopolitical platforms, often with a veneer of green certification and institutional communication.

Small farmers may be left with rhetoric, but the land – and the power – is shifting. Subsidies reinforce this trend.

Future Trends and Potential Shifts

Several trends suggest a potential for further exacerbation of these issues, but also opportunities for change:

  • Increased Focus on “Green” Subsidies: The CAP is increasingly incorporating environmental criteria for subsidies. However, without careful oversight, these “green” payments could simply benefit large landowners who can afford to meet the requirements, further marginalizing smaller farms.
  • Technological Disruption: Precision agriculture, AI-powered farming, and vertical farming are poised to reshape the agricultural landscape. These technologies require significant investment, potentially widening the gap between large, technologically advanced farms and smaller, traditional operations.
  • Geopolitical Competition for Land: As global food demand increases, competition for arable land will intensify, particularly in Africa and other developing regions. The Mattei Plan and similar initiatives could accelerate this trend, leading to land grabs and displacement of local communities.
  • Growing Consumer Demand for Sustainable Food: Increasing consumer awareness of the environmental and social impacts of food production is driving demand for locally sourced, organic, and sustainably produced food. This could create opportunities for small farmers who adopt sustainable practices.

The Path Forward: Reclaiming Agriculture as a Common Good

A fundamental shift in perspective is needed. Agriculture must be recognized not as a lever for industrial power, but as a common good. Redistributing resources to support ecological transition and water conservation for small farms is crucial. This requires a radical political choice – one that prioritizes food sovereignty, environmental sustainability, and social justice over the interests of a select few.

FAQ

  • What is the CAP? The Common Agricultural Policy is a system of agricultural subsidies and programs implemented by the European Union.
  • Who benefits most from the CAP? Large landowners and agribusinesses receive the vast majority of CAP subsidies.
  • Is the CAP environmentally sustainable? Currently, the CAP has been criticized for contributing to environmental degradation, although recent reforms aim to address these issues.
  • What is the Mattei Plan? An Italian initiative aimed at strengthening its geopolitical influence in Africa, with a significant focus on agricultural development.

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