The negotiating round between the Fifteen with the ten candidate countries as observers on the reform of the common agricultural policy (CAP) was concluded on 25 June with an agreement. The task of completing the reform by the end of the year will fall to the Italian Presidency of the Union. The main points of the deal are as follows. Budget: agricultural expenditure of roughly 41 billion euros per annum till 2013 confirmed. Subsidies: beginning from the 2005-2007 campaign each farm will receive a single EU contribution irrespective of its production, and the subsidy will be dependent on respect for environmental regulations, food safety and the well-being of animals. Ecoconditionality: the subsidies are linked to the need to maintain farmland in satisfactory agronomic and environmental conditions. Rural development: 28 million euros per year will be allocated to the co-financing of rural development projects and to the support of depressed agricultural areas. Quality: provision is made for a premium of 3,000 euros to stimulate the implementation of measures favouring the improvement of the quality of agricultural products and processes. Young farmers: the EU co-financing share in the investments of young farmers is increased. Milk quotas: the regime of milk quotas remains unvaried and has been extended to the 2014-2015 campaign. Rice: the price of European rice was fixed at 150 euros per ton. The direct aid to producers is being increased.
