Can't the subsidies operate almost like a backward VAT, moving upwards from the end value of the produce to the consumers, which promotes premium crops (like organic, for example). The subsidy only being paid if the end consumer is within the EU to prevent dumping on third world markets. Member of the Anti-Fabulousness League since 1987.
The solution, which I advocated 20 years ago, was to decouple the social supports for farmers from their actual production - and thus de-incentivise production - and positively support reduced intensity/ more sustainable/environmentally friendly farming. The result was that farmers got a social wage, the environment was supported, overproduction eased, third world farmers had less produce dumped on their markets, and the total cost of the enterprise to the taxpayer/consumer was reduced.
Now, with world prices rising, and pressure to liberalise trade (not least to provide access to developed markets for third world producers), farming incomes are rising in any case, and the need for a social wage support structure within the EU may diminish. However the money saved should be spent on ensuring third world farm productivity rises to enhance their incomes, prevent food prices rising further, and provide subsidies to the poorest of the poor who have no prospect of feeding themselves.
The problem with increasing farming productivity is that it increases energy/chemical inputs and reduces labour inputs leading to increased unemployment/rural poverty, soil degradation, social inequality, corporate dependencies etc. so more sustainable and equitable means of increasing production have to be found. "It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."