Minimum Income Policy: Elements and Effects of an Alternative Instrument of Farm Policy of the European Community
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Price support for farm products through import restrictions still represents the
main instrument for raising farm sector incomes within the Common Agricultural
Policy (CAP) of the European Community (EC).
The objective of this paper is first to analyze the effects of the traditional
price policy of the CAP. Next, an alternative type of farm income policy will
be discussed which seems to be more consistent with the general principles of
income policy outside agriculture, and which should be able to avoid, or at least
reduce, most of the negative effects of the present price policy of the EC.