The Common Agricultural Policy is the largest single item of expenditure (60%) of the total EU budget, much of which is spent on surpluses, storage, and export subsidies.

The Fifth Action Programme admits that the CAP's pricing policy support mechanisms have "less positive side effects". These include pesticide resistance and consequent pollution increases; soil erosion; diseases in livestock becoming harder to deal with because of genetic uniformity; water and soil pollution from fertilisers and animal wastes; and loss of habitat and diversity. Its long-term agricultural objectives are:

1. Maintain the basic natural processes indispensable for a sustainable agriculture sector, by conservation of water, soil and genetic resources. The target is a reduction of nitrate levels in groundwater, a reduced incidence of surface waters with nitrate content, and stabilisation of organic materials in the soil.
   
   

2. Decrease the input of agricultural chemicals.The targets are for a significant reduction of pesticide use per unit of land under production and conversion of farmers to integrated pest control.