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Explain the European Union’s Common Agricultural Policy
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The European Union’s Common Agricultural Policy (CAP) is a set of regulations designed to ensure a safe, secure and reasonably priced food supply throughout the EU. It is one of the most significant Common Policies of the EU with the aim of making the EU a single market in all sectors, and of improving agriculture, the environment and rural areas. CAP is managed through two types of subsidies: direct payments and market-related measures. The former, which are the largest of the two, are provided to farmers based on their land area and are paid irrespective of what they produce. The latter link market prices to intervention, private storage and other measures. CAP also includes rural development projects aimed at diversifying the agricultural sector, making it more competitive, and improving environmental protection. Additional measures include improving access to credit, providing income support and helping farmers access new markets.