Which component of the CAP is designed to offer financial support to farmers?

The Single Payment Scheme is specifically designed to provide financial support to farmers within the Common Agricultural Policy (CAP) framework. This scheme offers direct payments to farmers based on the amount of land they manage, helping to stabilize farm incomes and promote sustainable agricultural practices. By decoupling payments from production, it allows farmers the flexibility to make decisions based on market conditions and environmental factors rather than solely on output levels.

This financial support is crucial for maintaining rural livelihoods, preserving the viability of smaller farms, and encouraging environmentally friendly practices. Furthermore, it plays a significant role in ensuring food security within the European Union by bolstering the agricultural sector.

The other options, such as import duties and fixed prices, relate to trade and market regulation but do not provide direct financial support to farmers. Quotas regulate the amount of a product that can be produced or imported but are not a financial aid mechanism. Hence, the Single Payment Scheme stands out as the primary means of providing monetary assistance to those in the agricultural sector under the CAP.