In this paper, the structure of Policy for Less Favoured Area in EC was studied by comparing the cases of Germany and the United Kingdom.
First, the framework of Less Favoured Area Policy in Common Agricultural Policy of EC was clarified.
Second, on Germany and the United Kingdom, the structure of agriculture and each programme for Less Favoured Area were analyzed, and the effects of direct payment to farming of Less Favoured Area which compensates the handicap in natural conditions was evaluated.
Major findings obtained in this paper are as follows.
1. Programme supporting agriculture plays a part of the measure of Less Favoured Area Policy for its final purpose, maintaining minimum population and landscape of in each area.
2. There are differences in economic and social sturcture of Less Favoured Area among countries and regions. Also, each programme of Less Favoured Area Policy has several effects. They make it difficult to evaluate Less Favoured Area Policy.
3. Less Favoured Area Policy has targetting problem. This means that there is trade-off between covering the target of the policy and saving administration cost.