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 European farmers by providing them with financial support.
Step-by-step explanation:
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 European farmers by providing them with financial support. Through CAP, the EU provides direct payments and price supports to farmers, ensuring stable incomes and higher agricultural prices.