A major issue in the forthcoming negotiations onward the European Union's 'mid mete review' (MTR) agricultural policy reform proposals is the hereafter of the direct subsidy arrangement established as a major part of the CAP from the 1992 reforms.

A major issue in the forthcoming negotiations onward the European Union's 'mid mete review' (MTR) agricultural policy reform proposals is the hereafter of the direct subsidy arrangement established as a major part of the CAP from the 1992 reforms.

Direct or 'compensatory' subsidies have now largely replaced intervention buying and subsidised exporting as the major sustain of farm incomes in all countries of the European Union.

The Commission is proposing that the rife compensatory subsidies to arable and a certain livestock farmers should be transformed into a single income payment based forward the farmer's historical level of subsidy receipts.