THE CAP REFORM 2003 AND THE SINGLE PAYMENT SCHEME

The subject of the paper is the legal regime of the single payment scheme in the context of the reform to the Common Agricultural Policy drafted in 2003. The reform, adopted by then 15 member states o f the EU in resolution 1782/2003 dated 29 September 2003, postulates a departure of production and support. The specific feature of the reform is that the Community support is conditioned, or dependant, on the effects of cross compliance, which, when not achieved, result in a reduction or withdrawal of the aid. Another condition stipulated in the reform is the tying of aid with environmental protection, as envisaged in the Green Box of the Marakesh Agreement. The Community no longer grants financial aid to production, but aims to support farmers for the very fact that they are farmers. In other words, Community aid does not follow the product but takes the form of a single payment. That payment is now qualified as the average production support, or payment made in the years 2000-2002. In the effect of the further decoupling of direct payments, the farmers receive a certain 'rent1, and may then decide to terminate agricultural production, to ensure “good agricultural practice, compatible with the principles of environmental protection” . Another objective of the reform is granting aid for profitable production (on good arable land), and as such it meets the market expectations