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Increasing external pressures and the MacSharry reform of 1992

4 important questions on Increasing external pressures and the MacSharry reform of 1992

Most notably, it was concluded that, to be less distorting, instruments used within an agricultural policy had to be what?

'Decoupled' from agricultural production so that they would have no direct impact on the type and quantity of commodity produced by the farmer. This conclusion spoke directly to the CAP's price support system.

Price support = The system of agricultural support that involves keeping food prices higher than the market price, to give farmers a higher and more stable income.

The spirit of the reform was in line with international requirements, in that it would what?

Partly replace the system of agricultural price support with a system of individual direct patments to farmers aimed at compensating their loss of income.

Individual direct payment = An agricultural subsidy paid directly to individual farmers.

In addition, in order to benefit from the reform at two levels, cereal growers (together with large landowners) lobbied actively for what?

A full compensation of the price decreases for all (contrary to the Commission proposal of a sliding scale compensatory scheme dependent on the size of the farm).