Final answer:
The system of farm subsidies in Europe is referred to as the Common Agricultural Policy (CAP). CAP is a policy implemented by the European Union (EU) to support and protect the agricultural sector in member countries. It provides financial support to farmers through various mechanisms such as direct income support, market interventions, and rural development programs.
Step-by-step explanation:
The system of farm subsidies in Europe is referred to as the Common Agricultural Policy (CAP). The CAP is a policy implemented by the European Union (EU) to support and protect the agricultural sector in member countries. It provides financial support to farmers through various mechanisms such as direct income support, market interventions, and rural development programs.
For example, under the CAP, the government enters the market and buys up agricultural products to keep prices higher. This helps to stabilize the income of farmers and maintain food production levels in Europe.
In recent years, the CAP has faced criticism for its impact on international trade and the environment. However, it remains a significant aspect of agricultural policy in Europe.