Olive oil production and soil conservation in southern Spain, in relation to EU subsidy policies

The European Union spent about two billion ECU per year on subsidies for th e olive oil sector, of which Spain received about 35%. For the rainfed area s in southern spain the olive oil sector is crucial, and so are these subsi dies. The European Commission has formulated two options to change the subs idy system, but these do not take the production systems and enviornmental aspects into account. Many olive plantations are affected by soil erosion. This paper analyses the olive tree production systems in southern Spain, th e subsidy systems and the soil erosion problems. It then raises the questio n whether the subsidies could not be provided in a different way, in order to make olive tree cultivation more sustainable by reducing soil erosion an d flood hazard. (C) 1999 Elsevier Science Ltd. All rights reserved.