Olive Tree Farming in Jaen: Situation With the New Cap and Comparison With the Province Income Per Capita.



or computer files, in the appropriate format. These files are used to develop the input-output
tables of the Andalusian Agrarian Sector.

The main purpose of the operative system AGROS is to get any type of analysis results
in a format compatible with most current computer PC systems. AGROS file can be loaded by
statistic and calculation programs, graphic systems, word processors, other data bases, and so
on.

Design and further development of the AGROS system were based on an entity -relation
model that allows progressive data incorporation and, at the same time, forecast projection. This
is the most solid and universal representation for the design of relational data bases.

In relation to the CAP and olive oil here are the most important aspects of CMO of this
product throughout the nineties until the present.

Olive oil regulation in the European Union started in 1966. In that CMO there were two
different market organizations: one related to olive oil and another one related to oil seeds. Each
organization had a different basic instrument of organization, guarantee price plus production
subsidy for olive oil and deficiency payment to the farmer for oil seeds.

Most of the agrarian products regulated in any of the common market organizations
defined by CAP, have suffered some kind of modification. However, for olive farming the first
great reform comes in June 1998 with a deep modification in its CMO. That change modified to
a great degree the different types of prices, subsidies and public intervention till the 1997/1998
crop year and it has been applied till the 2004/2005 crop year.

The second main CAP reform has been introduced in September 2003. With that reform
subsidies to production disappear in almost all types of cultivation. It is evident that this new
CAP reform will result in (as the 1992 reform did), a deep change in the European agriculture
policy. The first one, in 1992, introduced the concept of ruralism in the agriculture sector and
this one puts an end to the productivist policy in this sector financed by community funds. As a
matter of fact, the new CAP born in the intermediate reform in 2003 means producing according
to market demand and not producing to get more public funds.

In order to understand olive farming situation, and that of the CMO and get a better view
of the changes that olive farmers will have to contend with from 2005/2006 crop year in which
the single payment is introduced, we will show the mechanisms used throughout the nineties,
including the 1998 reform. After that, we will describe the new situation for olive farming
within the intermediate CAP reform in 2003. The mechanisms were the following:



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