Generate text that refutes this claim: It doesn’t serve its purpose (subsidies to larger farmers)  The CAP as originally proposed was aimed to support small, local, family farmers which have difficulties with sustaining their business in competitive environment. The conference in Stresa in 1958 that helped define CAP’s objectives stated “Given the importance of family structures in European agriculture… all means should be taken in order to strengthen the economic and competitive capacity of the family enterprise.” [1] However, the current model of CAP gives direct payments to farmers according to area of their farms. That means that the major recipients of CAP are actually the biggest players in agricultural industry. According to Economist, 80 % of the subsidies go to 20 % of the richest farmers. [2] Therefore, the money is spent to support large companies and wealthy landowners who could easily compete in EU market even without such abhorrent support from EU taxpayers.  [1] Knudsen, Ann-Christina, ‘Romanticising Europe? Rural Images in European Union Policies’, Kontur, no.12, 2005,  p.52  [2] The Economist, ‘Europe’s farm follies’, 8 December 2005,
business economic policy international europe house believes eu should abandon
Even the larger companies can have difficulties in a market in which their consumers, the supermarkets, have so much power over prices. The result is often that supermarkets buy their produce at below the cost of production – as is happening with milk in the UK where it costs 30p per litre to produce but they are only being paid 25p per litre. [1] The costs of producing food in Europe even with mechanisation can be high because of the expensive workforce, and smaller farms on average than in the US. Therefore subsidies to larger companies are needed to keep even larger farmers in business. Often the larger companies involve smaller producers who produce the original, unique specialties and enjoy the stability of larger firm. It is hard to say that support of these companies is not useful.  [1] BBC News, ‘Q&amp;A: Milk prices row and how the system works’, 23 July 2012,