Agricultural prices
- (Photo: European Commission)
Normally, prices for agricultural products are determined by the market, based on the level of supply and demand. Within the EU agricultural prices are affected by the Common Agricultural Policy (CAP). The EU intervenes in agricultural markets to stabilise prices by building up stocks when prices are falling. Prices in the EU are therefore normally higher than on the world market.
The CAP is under review and recent reforms have changed subsidies from price support to support to agricultural land.
