EU Budget Quandary The EU is in a quandary about how to square its budget following the exit of the UK, which was a net positive contributor to the balance sheet. In addition to taking on new spending goals on the environment, farmers are demanding that their share of the budget not be cut. The Common Agricultural Policy has consumed a declining share of the overall EU budget for years, dropping from nearly 60 percent in the late 1980’s on average to a projected 30 percent going forward. U.S. agricultural support spending has already been a relatively small share of the overall federal budget but has risen in dollar expenditures in recent years. The following graph shows the relative decline in EU outlays versus the recent rise in U...