Not because of any virtue of factory farming - I am not a big fan of that - but because the logistics of storing, transporting and distributing the food needed to sustain a modern industrial society is itself an industrial operation. And industrial operations like to liaison with other industrial operations - they do not like small, independent (and thus unpredictable) enterprises like family farms.
So with that in mind, I think it would be fruitful to turn the question around: Instead of asking "whether CAP?" we should be asking "what rural policy?" Note that I am saying rural policy, not agricultural policy. The former is much broader than the latter.
In my view, any rural policy is constrained by the following set of objectives:
Your piece also helps fulfil my second objective, which is to move the debate on from the undoubted defects of a bureaucratic CAP which has been shaped largely by a political compromise between the ruling classes and a (rapidly declining) farmer class, to a much broader argument about sustainability, food security, bio-diversity, the quality of the environment, energy intensity, rural living and urban/rural planning.
I'm struggling to find a more expert community to discuss this with, because I want to move beyond the cliches into more measurable policy objectives and the political alliances required to make them realistic goals. But hopefully this will get a debate going on ET as well. notes from no w here