[HMRC Tax Bulletin 10, February 1994]

Support for arable farmers under the European Union's Common Agricultural Policy (CAP) was traditionally aimed at maintaining prices higher than world prices for sale of their crops. The reform of the arable regime in 1992 involved significant reductions in this kind of market-based support. To help compensate, farmers are now able to claim direct payments under the Arable Area Payments Scheme for the area of eligible crops which they grow.

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