This thesis is an examination of the impact of the 1992 MacSharry Common
Agricultural Policy (CAP) reforms on one region of the European Union (ED),
namely Grampian Region in Scotland. The period of analysis is 1991-95, covering
the year prior to reform up to the final year of the transitional period.
The MacSharry reforms were deemed the most radical of all CAP reforms in
its 30-year history. Named after Ray MacSharry, then Agricultural Commissioner,
these reforms went further than any previously proposed. The reforms occurred as
a result of years of internal domestic problems associated with high budgetary costs
and surplus products together with international pressures resulting from the
Uruguay Round General Agreement on Tariffs and Trade (GATT) negotiations.
The reforms were innovative in that they shifted farm support away from high
guaranteed prices for farm produce towards direct income payments to farmers.
This thesis examines the MacSharry reforms in depth and attempts to
determine their impact upon both Grampian agriculture and agriculture-related
industries as any changes to agriculture affect upstream and downstream sectors. In
addition the thesis examines agricultural industry change in the region as farmers
are found to be increasingly moving towards diversification and alternative farming
methods in an attempt to generate additional farm income. In determining the
impact of the reforms, the thesis thereby ascertains whether the implementation of
the reforms was successful or not in the region. Analysis of this impact is made
through the use of both primary and secondary data collection methods. The
conclusion drawn from this methodology is that the reforms were successful
regarding agriculture per se. As MacSharry had intended, production in arable and
livestock sectors were reduced, farmers' incomes increased and those benefiting
most appeared to be the smaller producers. However, contrary to predictions, the
research on agriculture-related industries in the region suggested that the reforms
had not adversely affected local businesses. Furthermore, the examination of farm
diversification indicated that although diversification in the region was becoming
increasingly popular this did not appear to be as a result of CAP reform.
Although there is an overall lack of literature on whether the MacSharry
reforms were successful or not when implemented in the EU, this example of one
Scottish region illustrates how the reforms worked out in practice, demonstrating
varying degrees of success across different sectors