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... January 1, 1995, Sweden also became a full participant in the EU's Common Agricultural Policy (CAP). The objectives of the CAP are: to increase productivity, to ensure a fair standard of living for the agricultural community, to stabilize markets, to assure food supplies, to provide consumers with food at reasonable prices. Under the CAP, the EU has created a single market for agricultural products and foods, with free exchange of goods between member countries.
Goods produced in the EU are protected by tariffs that make goods imported from elsewhere more expensive than those produced in the EU. Consumers are expected to buy mainly goods produced in the EU. Goods exported to countries outside the EU can receive export subsidies, which in principle should be equivalent to the difference between the higher EU market price and the world market price. Sweden's membership in the EU and the CAP created a new production and market situation for the country's food processing sector. Swedish farmers and food processors had previously sold their products mainly in the domestic market. They now gained access to the entire EU and world markets on the same conditions as their counterparts in other EU countries.
Meanwhile competition in the domestic market from producers in other EU countries intensified. This meant that Sweden became subject to various price and market controls in the EU, but also gained access to various agricultural subsidies. In 1999 Swedish farmers collected approximately SEK 3. 4 billion in arable area payments. Animal premiums were granted as follows: for male animals SEK 362 million, for suckling cows SEK 230 million and for ewes SEK 35 million. Over the past several decades the transition to increasingly intensive and technically efficient agricultural practices has had a negative impact on the environment. The Swedish environmental program for agriculture consists of three parts: preservation of biological diversity and the cultural environment of arable land plus the preservation open landscape in forested areas and northern Sweden, protection of environmentally sensitive areas, measures to stimulate ecological agricultural practices.
Great efforts have been made to reduce leaching of ammonia, phosphorous and nitrogen due to agricultural activities. During the past decade, the use of chemical pesticides has been cut by half. Swedish farmers can apply for special environmental subsidies, which serve, in a variety of ways, to promote environmentally friendly practices. The EU provides 50 % of the funding.
Environmental support is granted, for example, to preserve the biological diversity of grazing land and hayfields, valuable natural and cultural environments, open arable land, wetlands and small waterways, ecological (organic) cultivation, multi-year green fodder farming and the raising of domesticated animal species threatened with extinction. An expanded program covering both environmental and rural policy went into effect in 2000, with the aim of promoting the ecologically, economically and socially sustainable development of agriculture, food production, forestry and rural areas. The program costs a total of SEK 21 billion, of which about 45 % is co-financed by the EU via its budget. Environmental grants apply for a period of five years, and in 2000 a total of SEK 2. 0 billion was paid to Swedish farmers.
During the first five years after Sweden joined the EU, certified organic cultivation rose from 50, 000 to nearly 300, 000 ha, or more than 10 % of arable land. The average organic farm is 46 ha, while an average conventional farm is 33 ha. Organic farming can no longer be considered small niche production for a few rich consumers of health foods, but has become part of mainstream agriculture and has entered a period of strong growth and development. Conditions in northern Sweden are less favorable for agriculture than in the rest of the country, due to lower average temperatures, shorter growing seasons and greater distances. The general objective of Swedish regional policy is to provide people with employment opportunities, access to services and a sound environment regardless of their place of residence. The EU's structural and regional policies have similar objectives.
Northern Sweden-like the forested and non-arable areas of southern Sweden as well as parts of the Baltic islands of land and Gotland-qualifies for partially EU-financed compensation grants to less-favored areas. Compensation can be granted for growing grain and potatoes as well as for raising cattle, ewes and goats if there is sufficient fodder acreage. In northern Sweden, regional support is made available in the form of compensation grants and national subsidies. National subsidies are provided for milk production, slaughter pigs, eggs, piglets and goats as well as for potatoes, berries and vegetables. Other structural funding to the agricultural sector that is partially financed by the EU includes start-up support for young farmers and investment support for the establishment of permanent facilities within the agricultural, horticultural and reindeer husbandry sectors. In 2000 a total of SEK 0. 9 billion was paid to Swedish farmers as regional and structural support.
Under the EU's Common Agricultural Policy (CAP), milk production quotas are set for each member country. Sweden has been allocated a national quota of 3. 3 million metric tons per year. From CAP reform start in the early 1960 s, the CAP focused on raising productivity in agriculture. This strategy soon yielded results. In fact, the policy was so successful that production surpluses soon occurred in certain sectors and these products had to be sold in the world market at heavy costs to the EU. The first step taken in reaction to these surpluses was to reduce supply by means of quantitative restrictions.
In the early 1990 s, the EU adopted a new strategy that meant lower institutional prices for key products. As compensation for the effect of lower prices on their income, farmers also received direct subsidies such as area payments and animal premiums. This policy also provided the basis for the reform approved at an EU summit in Berlin in 1999. The EU's reformed agricultural policy is a step toward supporting the broader rural economy instead of agricultural production as such. It ensures that farmers are paid not only for what they grow, but also for their general contribution to society. The 1998 Swedish Agricultural and Food Policy Act (1997 / 1998: 142) established guidelines for Sweden's work with EU agricultural and food policy.
The most important goals for Sweden's work include: a reformed common agricultural policy, production of safe, high-quality food and strengthening of the consumer perspective, good health conditions for domesticated animals, safeguarding the natural and cultural environment of agriculture, ecologically sustainable food production for increased employment, regional balance and stable growth. So, as an EU member, Sweden became part of a single market for these products, with free competition. Since Sweden's entrance into the EU new regulations apply for the identification of animals and the record-keeping for cattle, pigs, sheep and goats. In order to obtain support, updated herd records must be submitted and the animals must be correctly marked.
In contrast to the 1990 reform of Swedish agricultural policy, which focused on deregulation of the market, the reformation of CAP does not mean that the agricultural sector is subject to fewer regulations. Membership in the EU has meant more comprehensive price regulation than was previously the case in Sweden. New regulations have been introduced and certain old ones reintroduced. Sweden promotes the deregulation of the agricultural sector within the EU. In July 1997 the Commission re-tabled a plan for the reform of the CAP. New negotiations within the WTO, the impending easterly enlargement of the Union and the strained budget situation are the primary reasons for the reform proposal.
Also the Swedish Government has long-term sustainable development very high on the political agenda. The main national environmental goals, which aim at achieving an eco cycle society and sustainable development, are formulated by Government and Parliament as follows: - protection of human health, - conservation of biological diversity, - management and sustainable use of natural resources, and - protection of the natural and cultural landscapes. In turn, the Green Party established in 1981 has its roots in the environmental movement, opposition to nuclear power, the womens movement and the peace movement. In the 2002 election, the party received 4. 6 percent of the vote. The party supports a green ideology and says it advocates a society radically different from that of today. At the heart of its policies are environmental issues and an ecologically sustainable society, but the issue of increasing the element of grassroots democracy has also been pivotal.
At the heart of its policies are environmental issues and an ecologically sustainable society, but the issue of increasing the element of grassroots democracy has also been pivotal. The party originally resisted attempts to be classified on a right left scale, but over time it has become clear that on most issues Sweden's Green Party stands more to the left than the right. Unlike other Green parties in Europe, it has also been a pacesetter in opposition to both EU and euro zone membership. So, Sweden's EU membership and consequent adherence to the EU's common agricultural policy has brought re regulation of agriculture.
Sweden's agricultural support policies have been adjusted to the EU's common agricultural policy, including intervention buying, production quotas, and increased export subsidies. Works Cited Batavia B, and Malliaris A. G. , 1996. The Common Agricultural Policy of the EU and Developing Countries, in C. G.
Paraskevopoulos et al, Chapter 16, pp. 193 - 205. Fact Sheet on Sweden: Swedish Institute. December, 2003 Pa arlberg, Robert. Agricultural Policy and Trade Reforms in Developed Countries: Projected Consequences for Developing Countries, in Fletcher, 1992, Chapter 4.
Ride, Bengt and Villy Bergstrom. Sweden: Choices for Economic and Social Policy in the 1980 s. London: George Allen & Unwin, 1982. Wilson and Tyrchniewicz. Agriculture and sustainable development: policy analysis on the Great Plains. 1995 Agriculture and food processing in Sweden. Publisher: Swedish Institute. 1 Nov 2001.
web Agriculture in Sweden. web Baylis, Kathy and Rausser, Gordon. Rules, Policy and Rent Seeking: A Cross Border Comparison. web Hamel, Michael.
Policy Aspects of the Agriculture/Environment Relationship. web The Integration of Environment and Economy: Issue. web MacRae, Rod J. , B. Hill, Stuart, Henning, John and J. Bentley, Alison. Policies, programs and regulations to support the transition to sustainable agriculture in Canada: EAP Discussion Paper # 109. 1990.
web Natural resource aspects of sustainable development in Canada. 1 April, 1997. web Sweden. Country Profile. Implementation of Agenda 21: Review of progress made since the United Nations Conference on enviroment and developement, 1992.
web Trade policy reviews: first press release, secretariat and government summaries. Canada: November 1996. 11 November, 1996. web
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