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Environmental effects of the CAP are highlighted

20 May 2004

 A study commissioned by DG Agriculture carried out by the Institute
 for European Environmental Policy in London has called for an expansion
 of rural development policy expenditures and further progress towards
 de-coupling farm subsidies from production, as a more appropriate
 policy approach in environmental terms. DG Agriculture argues that
 the report strongly supports the direction pursued under the Commission's
 mid-term review proposals, particularly the compulsory 'modulation'
 concept.
The study calls for more targeted policy interventions to focus
 on appropriate farm management at farm level, and for market regimes
 to be amended where they currently providean incentive for environmentally
 damaging production.