Agriculture holds a special position within the European legal system.
While many economic sectors are fully subject to the rules of free competition, agriculture is politically and legally regarded as a sector that fulfills a fundamental societal task: supplying the population with food.
This special role is anchored in the primary law of the European Union – particularly in the Treaty on the Functioning of the European Union (TFEU).
The fundamental objectives of European agricultural policy are set out in Article 39 TFEU.
This article forms the basis of the so-called Common Agricultural Policy (CAP).
The legal text formulates the following objectives:
The article makes it clear that agriculture is not understood solely as a market sector but also as an area that should ensure societal stability and food security.
Article 39 TFEU additionally points out that certain structural particularities must be taken into account when shaping agricultural policy:
These factors explain why agriculture is often treated differently in policy than other economic sectors.
The special status of agriculture is also reflected in competition law.
Article 42 TFEU stipulates:
The competition rules of the European Union shall apply to production of and trade in agricultural products only to the extent determined by the European Parliament and the Council, account being taken of the objectives set out in Article 39.
This makes it possible for cooperations in agriculture to be permitted that might be considered anti-competitive in other sectors.
Based on the aforementioned articles, a series of regulations have been created to regulate the agricultural market.
A central role is played by Regulation (EU) No 1308/2013, the so-called Common Market Organisation (CMO).
This regulation enables, among other things:
The aim of these measures is to compensate for the structural disadvantages of many agricultural enterprises compared to large trading structures.
European agricultural policy fundamentally operates between two poles:
The legal foundations show that both perspectives are to be considered simultaneously. On the one hand, agriculture remains part of the economic system; on the other hand, its role in food security, regional development, and societal stability is recognized.
This special legal status also explains why many forms of cooperative agriculture have emerged, for example:
Such initiatives often operate in an area where cooperation along the value chain is explicitly provided for or at least enabled.
Agriculture is not treated as an ordinary market sector in European law.
The European treaties define clear societal objectives:
These objectives justify the special political and legal status of agriculture in Europe.
One level up: Background Knowledge
Author: Felix Schröder, with assistance from AI (ChatGPT)
Creation: written by Felix Schröder › formatted in Markdown by ChatGPT › published by Felix Schröder › layout adjusted by Claude
Created: 2026-03-04 · Last updated: 2026-03-04 · Questions or feedback? support@teikei.us