EU farm ministers have agreed to reform agricultural policy by shifting more subsidies away from production and liberalising the dairy market.

The deal on reforming the Common Agricultural Policy came on Thursday after marathon all-night talks.

More subsidies will be transferred to conservation, reducing the traditional EU incentives for farmers to produce.

Milk quotas will be raised initially, but later scrapped, in the biggest overhaul of farm policy since 2003.

The measures will go into effect during 2009-2013.

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