For grain prices, see the Chicago Board of Trade. Set up under USDA to protect farm prices. Includes loans that allow farmers to hold grain until prices rise. Organic matter such as leaves or corn stalks that have been decomposed in a pile and turned into a soil-like material.
Some federal aid requires that farmers working highly erodible land follow a conservation plan. Voluntary program through U. Planting at right angles to the natural slope to cut soil erosion. Those who raise livestock, hogs for example, which are owned by someone else, often a corporation.
Cooperatives, which are organizations owned and run by farmers, who share in the responsibilities and profits. Many early ethanol plants were set up this way, as were long-standing grain elevator operations and some local power utilities. A network that links land-grant universities with the U. A good source of information and tips on a wide range of agricultural topics.
Changing crops from year to year to keep the soil healthy. For example, planting soybeans after a corn crop because soybeans are a legume that fixes nitrogen in the soil. Areas of low oxygen in the Gulf of Mexico and elsewhere.
Fertilizer runoff leads to algae blooms. When the algae die, oxygen is consumed, forcing sea creatures to move to a different area or die. A nonprofit organization that has analyzed federal payments to farmers, showing that a small share get the bulk of the aid. An alcohol fuel produced from corn, soybeans, sugar cane or other organic material.
Education arm of land-grant universities, often with a wealth of information for reporters on both agriculture and climate. Open areas where livestock, particularly cattle, are raised. Any organic or inorganic material used to feed a crop. Includes nitrogen, phosphorus, and potassium from synthetic sources and manure. General Agreement on Tariffs and Trade: Known as GATT, an agreement that sets conduct codes for international trade.
The business end of a combine or other farm machine, for example the apparatus used to harvest corn. A somewhat old-fashioned term that connotes raising hogs in a feedlot.
Decomposed organic matter in soil that provides nutrients and helps hold moisture. A system that uses cropping techniques to control pests, including the use of resistant plants. County zoning of livestock confinements. Not allowed in many states. Cows injected with rBGH have shorter life spans and are much more likely to suffer from udder infections.
RBGH has been banned in Canada, the European Union and elsewhere because of inadequate testing and some evidence that it leads to cancer. Heirloom vegetables are vegetables whose seeds have been saved for generations and passed down. By contrast, seeds from hybrid plants are not true to type and so are not good for saving. This requires that the grower purchase new seeds every year. Hybrids have been bred for specific qualities but have not been genetically modified.
GMO plants have been genetically engineered. This can be done by combining DNA of different plant varieties or by introducing genes from other species, such as fish. The farm raises rare and endangered breeds of livestock to reintroduce genetic diversity and prevent extinction.
Integrated Pest Management I. The farm uses a pest-management strategy that includes a combination of biological, cultural, and chemical tools to reduce crop damage from insects, diseases and weeds.
Pesticides are used minimally and judiciously as only one part of the pest management strategy. The term is not regulated for use on non-meat products. Animals are raised without added growth hormones. No antibiotics are administered to the animals during their lifetime. No Routine Antiobiotics Used: Antibiotics are not given to the animals to prevent disease, but may be administered if the animals become ill. No Synthetic Chemicals Used: By derogation, some member states respecting certain conditions may keep existing payment entitlements.
In order to avoid the abandonment of land in areas with natural constraints or other specific constraints , member states or regions may grant an additional amount of direct payment for farmers in these areas. The reform of the Common Agricultural Policy stipulated that young farmers farmers starting-up their farming activity and not older than 40 in the year of application eligible for the basic payment may receive a payment under the young farmers scheme for a maximum period of five years.
Article 13 of the WTO agreement on agriculture which protected agricultural subsidies from being challenged under the other WTO agreements, in particular under the General agreement on tariffs and trade and the subsidies agreement. The clause expired at the end of A performance framework and reserve for the European structural and investment funds is provided for in the common provisions regulation.
The reserve is be attributed on the basis of the performance framework defined for each programme with a view to monitoring progress towards objectives and targets over the course of the programming period. The Commission will undertake a performance review in co-operation with the member states in In order to ensure that the European Union budget is used efficiently and is not wasted, where there is evidence that a priority has seriously failed to achieve its milestones, the Commission may suspend payments or, at the end of the programming period, may apply financial corrections.
In the context of the Common Agricultural Policy, the term permanent crops means non-rotational crops other than permanent grassland and permanent pastures which occupy the land for five years or more and which yield repeated harvests, including nurseries and short rotation coppice. This support is provided in the form of direct payments and market measures and is entirely financed from the European Agricultural Guarantee Fund.
The second pillar is the support provided for the development of rural areas. This support takes the form of Rural Development programmes and is co-financed from the European Agricultural Fund for Rural Development. This aims at strengthening the synergies and weeding out inconsistencies between the non-aid policies of the European Union and its development objectives.
The main incentive has been the knowledge that limiting policy incoherence and strengthening synergies among external and internal policies will enhance the overall efficiency of development cooperation and will also lead to increased development benefits in developing countries. The concept of policy coherence for development stems from the conclusions of a Council meeting of The Lisbon Treaty Article has strengthened legal basis of this principle by requiring it to be mainstreamed into all related policies.
This is a scheme that supports the incomes of farmers in the outermost regions of the European Union and the supply of essential products to those regions. The scheme seeks to compensate farmers for their extra costs of production and marketing due to the small size of these territories, their difficult topography and climate, and the long distance to European markets. This is a principle endorsed by the United Nations and which entered into European Union law in the early s. Subsequently, the principle also incorporates the idea that, in the case of an unknown but potentially harmful action, the burden of proof that the action is not harmful falls upon those taking the action.
The principle justifies a higher level of protection, notably than that agreed in the context of international negotiations. The principle applies mainly to the fields of food safety and environmental and consumer protection, and should be considered within a structured approach to risk analysis. It is particularly relevant to risk management.
The precautionary principle is mentioned Art. However, the European Commission has developed guidelines for its application and has stated that the European Union, like all other members of the World Trade Organisation , has the right to establish the level of environmental and consumer protection that it deems appropriate.
The precautionary principle covers cases where the scientific evidence is insufficient, inconclusive or uncertain and preliminary scientific evaluation indicates that there are reasonable grounds for concern that the potentially dangerous effects of a good, a product or a practice on the environment or on the health of plants, animals and humans may be inconsistent with the level of protection chosen by a particular country. The term premium usually referred to a payment per head of livestock ewe premium, special beef premium, suckler cow premium.
Since the reform of the Common Agricultural Policy, premia have generally been decoupled from production and incorporated into the single payment scheme SPS. Also known as market volatility , this refers to the fluctuation of prices of agricultural goods in the market. If farmers do not invest in their farms, there is a risk that farm productivity and efficiency will fall. Some products have a seasonal cycle, meaning that in certain periods there is a relative over-production, while later in the year there is a relative shortage.
Certain external factors may increase the seasonal peak beyond normal expectations, thus potentially causing the market price to fall. In such cases it may be decided to temporarily support producers of products, such as olive oil and butter, regarding the cost of private storage.
A legally-constituted group of farmers and growers. Producer organisations assist in the distribution and marketing of products. They also promote a higher quality of products and encourage their members to adopt good environmental practices. Producer organisations have been legally encouraged since in the fruit and vegetable sector, and since in the milk sector see milk package.
Since the reform of the Common Agricultural Policy, producer organisations are now encouraged in all sectors. Producer organisations can group themselves into associations of producer organisations and into inter-branch organisations. These are limitations on the amount of a specific product that can be placed on the market. They apply to processing companies producing sugar, isoglucose and inulin syrup. This is the promotion food and beverages produced by farmers in the European Union.
Products are promoted both within the European Union itself and in third countries. To this end the European Union, its member states and the professional organisations co-finance and jointly organise promotion actions, information campaigns and trade missions.
Agricultural product quality policy. Goods and services which benefit the general public but for which the producer is not remunerated through the market. Farmers provide a number of public goods such as the sound management of soil and water, the maintenance of landscape features and food security. One of the market management instruments under the single common market organisation and which functions as a safety net is public intervention.
When the market price of a product reaches the reference threshold , the European Union may decide to buy a quantity of the product from the market and place it temporarily in storage. Later, when prices are recovering, the product may be sold in the internal market, sold in special destinations or exported. In order to manage the market of a particular farm product, the European Union may remove some of the product from the market and place it temporarily in storage.
The number of hectares for which this payment could be allocated will be limited to 30 hectares or the average farm size in member states if the latter is more than 30 hectares.
The single common market organisation provides for a set of instruments which enables the European Union to stabilise prices for agricultural goods on its internal markets. Among these instruments are public intervention and private storage aid.
Whether these instruments are applied depends on the actual market price level which is compared to a legally-fixed price level by sector. This price level is the reference threshold. Due to changes in the aspirations of citizens, new social and economic conditions and the emergence of novel technologies, it is necessary, from time to time, to adjust and update the Common Agricultural Policy.
This is the process of reform. There have been several reforms of the policy. The first major reform was designed by Commissioner Ray MacSharry in In , during the tenure of Commissioner Franz Fischler, specific direct payment schemes were incorporated into a single payment scheme, direct payments were decoupled from production and a number of new mechanisms were introduced such as cross-compliance , modulation , degressivity , the financial discipline mechanism , farm advisory services and good agricultural and environmental conditions.
In , during the tenure of Commissioner Mariann Fischer Boel, there was an adjustment of the Common Agricultural Policy the "health check". The functioning of the single payment scheme was simplified, the decoupling of direct payments was extended, the scope of cross-compliance was adjusted and set-aside was definitively abolished.
Specific payments were introduced to assist young farmers. A reform generally proceeds by the following steps: The action plan describes the simplification projects that have been initiated. The Rural Development measures are defined in the Rural Development regulation and represent the main instruments to implement the Rural Development programmes.
For the programming period — , the number of measures has been reduced compared to the previous programming period. Furthermore, there is now more flexibility in how the measures are used. This increases their effectiveness in meeting specific priorities. A range of different types of support is offered by the menu of Rural Development measures to address the many needs of the rural areas of the European Union. Member states have to programme these measures to ensure that they help to achieve one or more European Union priorities for Rural Development and to meet the needs of rural areas.
Member states have a certain discretion regarding the final design of these measures. The support granted under each measure is shared between the European Union and the member state concerned.
This arrangement is known as co-financing. In line with this strategy, Rural Development aims to achieve three strategic objectives competitiveness, natural resources and balanced territorial development. These long-term objectives are interpreted in terms of priorities of which six are defined in the Rural Development regulation, as follows:.
The Rural Development programmes define multi-annual strategies in selected programming areas, based on a thorough analysis of their socio-economic and environmental needs. The strategies implemented under each Rural Development programme aim at meeting the European Union priorities for Rural Development through a number of selected measures. The programmes also lay down the conditions that potential beneficiaries have to meet if they are to benefit from Rural Development funds.
The reform of the Common Agricultural Policy furthered the market orientation of farming. At the same time, it acknowledged that a market that is more open means that farmers face a greater degree of market volatility , with strong disturbances in terms of price and quantities.
Therefore, mechanisms are available which provide for a safety net to help the farming sector to survive bad years, to ensure food security over time and to secure the viability of the sector in the long run.
The stability and long-run security provided by safety nets also benefit the upstream sector, processing industry, retailers and consumers. Public storage and private storage aid are two examples of such mechanisms. The aim of safety net mechanisms is to help farmers. They are not meant to be a permanent form of market intervention and influence the production decisions of farmers. These are measures to protect human, animal and plant life or health and to ensure that food is safe to eat.
The final act of the WTO agreement on agriculture contains the agreement on the application of sanitary and phytosanitary measures. It applies to all sanitary and phytosanitary measures that may have a direct or indirect impact on international trade.
This is the list of bound tariffs and commitments of a member country of the World Trade Organisation regarding its domestic support and export subsidies. Aid provided by the European Union to support the distribution of fruit and vegetables to children in nursery, primary and secondary schools. The objective is to introduce balanced diets and good eating habits. Aid provided by the European Union to supply milk and certain milk products to children in nursery, primary and secondary schools.
This is a biofuel derived from plant material that does not have an alternative use as food cf. Second-generation biofuels are derived - through the fermentation of cellulose - from a variety of materials including waste biomass, wood and the stalks of cereals. They are also derived from crops grown especially for fermentation into biofuels, such as miscanthus species. This was the temporary removal of farmland from production. Set-aside was introduced in the late s with the objective of reducing the amount of food produced by farmers.
The rationale at the time was to control supply: Given the subsequent positive development of agricultural markets, set aside was temporarily suspended in and abolished definitively in with the health check reform of the Common Agricultural Policy. A supply chain involving a limited number of economic operators, committed to co-operation, local economic development, and close geographical and social relations between producers, processors and consumers. This refers to the continuous work by the European Union to simplify both its policies and the mechanisms to implement them.
Simplification involves reducing the administrative burden in existing legislation and preventing its potential occurrence in the future. Simplification may also refer to the modification of legal frameworks and texts in order to make the legislation as such more comprehensible. Simplifications are carried out on a continuous basis and are included in the rolling simplification action plan of the Directorate-General for Agriculture and Rural Development.
It provides indications of the resulting reduction of the administrative burden of farmers and national administrations. Due to limited administrative capacities and the absence of historical data, new member states i.
The single area payment scheme provides a flat-rate decoupled area payment paid for eligible agricultural land and replaces almost all payments granted in other than new member states.
However, the reform of the Common Agricultural Policy permitted member states applying the single area payment scheme in to apply it until At present, the single area payment scheme is applied by all new member states except Slovenia, Malta and Croatia. A common market organisation is a set of measures that enables the European Union to monitor and manage, either directly or indirectly via producer organisations supported by operational programmes , the markets of agricultural products.
The rules are laid down in the regulation on the single common market organisation. The purpose of market management is to stabilise markets in terms of quantity offered and purchased and the price at which transactions take place and thus to ensure, on the one hand, that farmers do not suffer from excessively low prices and, on the other, that consumers have a secure supply of food at reasonable prices. With a view to make things simpler, the European Union has amalgamated these 21 common market organisations into a single set, known as the single common market organisation.
This was introduced by the reform of the Common Agricultural Policy and is the scheme by which farmers receive a decoupled single payment. Prior to the reform, a farmer could receive a number of specific direct payments, each one associated with a particular line of production of crop and livestock cereals, milk, beef The reform incorporated these specific direct payments into a single payment and decoupled this payment from the production of crops and livestock.
The reform has continued this orientation, the single payment scheme having been transformed into a basic payment scheme. This is a simplified direct payment scheme granting a payment, the level of which is determined by the member state but not exceeding EUR, to those farmers who decide to participate in the scheme. The small farmers scheme includes simplified administrative procedures.
Participating farmers are exempt from greening and cross-compliance sanctions and controls. Provisions in the WTO agreements that allow developing countries to benefit from exceptions or special treatment.
These include longer periods to phase in obligations, more lenient obligations, etc. As a general rule, member states are not allowed to grant aid to undertakings. The notion of aid is very wide and basically covers everything by which an undertaking would receive an economic advantage, whether it consists of a straightforward financial aid or indirect support such as tax advantages, better conditions for the purchase or lease of land, giving a loan or a guarantee for taking out a loan from a bank at better conditions than normal market rates, etc.
In principle, payments made under European Union rules are also considered as state aid if the member state exercises any discretion in the matter. In the context of the Common Agricultural Policy this is the case with regard to payments under Rural Development.
In contrast, the member states do not exercise any discretion regarding direct payments because European Union law predetermines the eligibility criteria. Therefore, direct payments are not considered as state aid. The legislator the European Parliament and the Council may decide that the state aid rules do not apply to financial assistance made available by member states, and has done so, for example, with regard to Rural Development payments made in respect of agricultural activities, i.
But even if there is a state aid, it is possible that the member state may be allowed to grant the aid because the Treaty provides for a series of derogations by virtue of which state aid may be declared compatible with the internal market by the Commission. To assess this compatibility, the Commission has defined different sets of rules.
For those cases where state aid rules apply in principle, member states may grant payments if they are of a low value de minimis rule , if they have been authorised by the Commission following a notification by the member state concerned, or if the state aid is in accordance with pre-determined block exemptions. In cases where a member state provided state aid to its farmers without the prior authorisation by the Commission and which, in the view of the Commission, is incompatible with the internal market, the farmers may be obliged to pay it back, with interest, to the member state see compatible state aid , illegal state aid , incompatible state aid , unlawful state aid.
In the context of state aid, the Commission may receive notifications from the member states indicating their intention to grant aid. Government-controlled trading agencies used by several WTO member countries to exclusively market imported or domestic products in international or domestic markets. State trading enterprises which export agricultural goods are part of the Doha development agenda agricultural negotiations.
The statutory management requirements form part of cross-compliance and are laid down in a number of European Union directives and regulations. They concern public health, animal and plant health, identification and registration of animals, environment and animal welfare. These requirements apply independently of cross compliance which only establishes the link between the full payment and the respect of such requirements.
Its most far-reaching decision was to support agriculture by guaranteeing that the prices farmers received for their products when they sold them in the market would not fall below a floor price a mechanism known as price support or market support. Limitations on the quantities of sugar that beet processors can sell on the market for food purposes.
Sugar quotas were introduced in immediately at the start of the common market organisation for sugar. Quotas are fixed for each member state or region by the Council and Parliament, while national authorities allocate the quota to the individual companies. The sugar companies sign pre-sowing delivery contracts with farmers to produce the beet necessary to fill the quota. Quotas are fixed below the level of consumption and the gap is mainly filled by imports both quota-free and duty-free from developing countries.
The quantity of out-of-quota sugar that is not used can be carried forward to the next marketing year, counting as the first quota production of the year. Sugar quotas will end on 30 September In the context of aid for Rural Development, the support rate is the share of the total eligible costs of an operation project, contract, etc. This term means meeting the needs of present generations without jeopardising the ability of future generations to meet their own needs — in other words, a better quality of life for everyone, now and in the future.
It offers a vision of progress that integrates immediate and longer-term objectives, local and global action, and regards social, economic and environmental issues as inseparable and interdependent components of human progress.
Firstly it means the list, book or database of charges that are imposed by a government on goods when these are imported or exported. Secondly it means the charge itself. Amounts transferred do not have to be co-financed by member states. Alternatively, member states may make a transfer in the opposite direction i. Introduced for the first time in in those new member states applying the single area payment scheme and receiving a full level of direct payments.
Member states applying the single area payment scheme are allowed to continue to grant national aids under the same conditions that previously applied to complementary national direct payments but subject to gradual reduction. In the context of the Common Agricultural Policy, this is an initiative taken by the European Union which requires both it and its member states to make available to the public as much information as possible regarding the implementation of the policy and its beneficiaries whilst at the same time ensuring an adequate level of protection of personal data.
The legal foundation of the European Union takes the form of international treaties concluded between its member states. This was followed by two further treaties which were concluded in in Rome. The Treaty of Paris expired in Thereafter, the European Union replaced the European Community. This is an unofficial term that encompasses illegal state aid and incompatible state aid.
The 8th round of multilateral trade negotiations known as the Uruguay Round, conducted within the framework of the General agreement on tariffs and trade, was launched in Punta del Este, Uruguay, in It was concluded eight years later in Marrakesh in , with the signature of the final act of the Uruguay Round.
This adopted a number of individual agreements and decisions, including the WTO agreement on agriculture , as well as the provisions that set up the World Trade Organisation. This was established on January 1, , as a result of the Uruguay Round. It replaced the General agreement on tariffs and trade as the legal and institutional foundation of the multilateral trading system of its member countries. The World Trade Organisation provides the principal contractual obligations determining how governments frame and implement domestic legislation and regulations regarding international trade.
It is also the platform for trade negotiations and adjudication among its members. As of April , countries belong to it - i. One of the 29 individual legal texts of the World Trade Organisation which was negotiated during the Uruguay Round of the General agreement on tariffs and trade. It entered into force with the establishment of the World Trade Organisation on January 1, The agreement provides for reductions in tariffs, export subsidies and trade-distorting domestic support to farmers, while having regard to the situation of developing countries.
A person who is 40 years of age or less at the moment of submitting an application for aid, who possesses adequate occupational skills and competence and who is setting up for the first time in farming as head of the holding. Skip to main content. European Commission Agriculture and rural development Glossary Agriculture and rural development. Download the glossary in all EU languages. The reform of the Common Agricultural Policy introduced the stipulation that, for the purpose of receiving direct payments, farmers shall have an agricultural activity which means: Any area taken up by arable land, permanent grassland or permanent crops.
Areas facing Natural or Other Specific Constraints. Block exemptions state aid. Under the terms of the WTO agreement on agriculture , the measures that a member country uses to support its agricultural sector are categorised into one or other of the following boxes, after the original image of traffic lights: Green box - subsidies that must not distort trade, or at most cause minimal distortion, such as decoupled direct payments.
This type of support was excluded from reduction commitments under the WTO agreement on agriculture. Blue box — payments made within production-limiting programmes, such as coupled support which is limited by reference period acreage or headage. Amber box — sometimes called 'yellow' or 'orange' , domestic support measures considered to distort production and trade, such as price support or subsidies directly related to production quantities.
The level of support provided by these measures which is called the aggregate measurement of support had to be reduced under the WTO agreement on agriculture. Common agricultural policy CAP. Community-led local development strategy. Competition issues in the context of the single common market organisation.
Complementary national direct payments CNDPs. De minimis rule in the context of the CAP. De minimis rule in the context of the World Trade Organisation. European structural and investment funds ESIFs. General agreement on tariffs and trade GATT.
Agriculture Terms & Definitions Adapted from the USDA Acid Soil: A soil with an acid reaction, a pH less than Acre: A parcel of land, containing 4, square yards or 43, square feet. Agriculture: The utilization of biological processes on farms to produce food and other products useful and necessary to man.
The Glossary is a collection of definitions of agricultural terms developed in conjunction with the creation of the NAL Agricultural Thesaurus. The edition contains 5, definitions ranging across agriculture and its many ancillary subjects.
The Glossary is a collection of definitions of agricultural terms developed in conjunction with the creation of the NAL Agricultural Thesaurus. The edition contains 5, terms ranging across agriculture and its many ancillary subjects. Understanding the basic terms associated with agriculture-related topics will give you the knowledge base to conduct solid interviews and identify key trends. To get you started, here’s a list of keywords to familiarize yourself with: Agricultural Adjustment Act of This set up the system of.
Agricultural Glossary. These terms and their definitions are intended to provide some clarity for both producers and consumers in an area that is often confusing, given the growing number of terms used to describe farms and their products, and the lack of legal definitions for many terms. Pages in category "Agricultural terminology" The following 51 pages are in this category, out of 51 total. This list may not reflect recent changes ().