Spanish Agricultural Policy Transformation Post-EU Entry

1.4. Agricultural Policy in Spain

In Spain, agricultural policy underwent a huge transformation after entry into the European Union (1986) and the subsequent adoption of the Common Agricultural Policy (CAP).

Pre-CAP Focus (Mid-Nineteenth Century to CAP Adoption)

The agricultural policy until the adoption of the CAP focused on three main areas:

• The system of land ownership.
• The inadequate size of landed property.
• Trade protectionism.

A) Land Ownership System Reforms

Attempts to change the system of land ownership included:

• The political desamortización (disentailment) of the nineteenth century.
• The agrarian reform of the Second Republic.
• The policy of colonization and expansion of irrigation under Franco.

B) Addressing Inadequate Land Size

This issue was addressed through land policy and legislation on large farms:

• Land Consolidation (begun in 1952 and continuing): This aimed to reduce farm size by giving each owner a single parcel or few parcels, equivalent in class and type of crop to what they previously held, and ensuring access to roads.
• Legislation on Large Farms (begun during the dictatorship): Affected owners could expand their holdings. The law, as amended during the transition, requires owners to submit an improvement plan.

C) Trade Protectionism

This involved the establishment of tariffs for agricultural products imported from abroad.

D) Increasing Yield

Yield augmentation was addressed by the introduction of technical improvements and the extension of irrigation.

Impact of the Common Agricultural Policy (CAP)

Upon joining the European common market, Spain integrated into the CAP:

• Internal Market: Common Markets (OCM) were established for the most representative products, setting minimum and maximum prices.
• External Markets: Trade with the EU was liberalized, and Spain adopted the principle of Community preference and the common external tariff for products from third countries.

Free trade in Europe has necessitated great efforts to modernize and increase productivity, quality, and competitiveness.

B) Challenges Faced by Spanish Farming Under the CAP

Spain was affected by common farming community problems and subsequent reform measures. These issues include:

• High Product Prices: Prices were high relative to the world market. To alleviate this, the last CAP reform reduced prices.
• Surplus Products: The existence of agricultural and livestock surpluses is managed through quotas.
• Consumer Demands: Consumer demands regarding feed safety, animal welfare, product quality, and environmental care have resulted in new regulations and aid measures.
• Rural Depopulation: The depopulation of rural areas, especially the more disadvantaged ones, risks the disappearance of traditional agricultural landscapes.

C) Regional Effects of the CAP

The effects of the CAP have been particularly problematic for regions with surplus production in the European Union and those less competitive compared to other member countries. Conversely, the consequences have been positive for the Mediterranean coast and Andalusia, which found a good market for their fruit and vegetable products.