Harvesting Change: The Social Dynamics of the Common Agricultural Policy on European Farmers

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Supervisors: Defraigne, Jean-Christophe
Faculty: Louvain School of Management
Degree label: Master de spécialisation en entreprises et politiques économiques européennes
Abstract: Abstract: This master’s thesis has identified the social aspects of the Common Agricultural Policy of the European Union. The main research question answered in this thesis is “what are the social effects of the CAP?” The relevance of this research lies in the farmers protests that happened in early 2024 in Brussels against the current CAP. Furthermore, as rural social cohesion, in which agriculture plays a prominent role, is one of the main goals, it remains important to analyse in depth how farmer support influences rural social cohesion. A comprehensive literature study to identify both critical issues, how the EU attempts to tackle these issues and what are the effects of these policy choises. It is found that while the CAP contributes to improve agricultural income and creates local spill-over effects, it also increases the land prices, which is identified as the main factor deterring entry in the agricultural sector, especially for young people. Decoupled Pillar One support and Pillar Two support are found to increase agricultural income and contribute to social cohesion in rural areas. On the other hand, coupled Pillar One support is found to distort market equilibria and production decisions.