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The economic incentives for agricultural production , which were established by the EU and Member States for decades (e.g. farmers’ CAP subsidies, low recovery of costs for agricultural water, VAT exemptions for agricultural water, special tax and social security regimes, etc.), have been a major driver leading to the expansion and intensification for irrigation in Europe. The switch to irrigated crops and more intense irrigation were perceived by farmers as ways to produce more harvest and gain more revenues, since irrigated yields are proportionately higher than rainfed yields. In addition, during the 1990s and 2000s the World Trade Organisation adopted serious reforms, which liberalised global trade. Stimulated global trade within a globalised economy has provided new opportunities and new markets for European agricultural products. However, after the 2006 CAP reform, part of the incentives was taken away to promote decoupling of payments from agricultural production. In most EU Member States this caused a slow-down or reverse in the expansion of irrigated areas.

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