A study commissioned by the European Parliament’s agriculture committee on implementation of the policy on young farmers within the CAP says that the support devoted to it is useful but needs to be better targeted, particularly towards new entrants to the sector.
Financial aid to young farmers under the first pillar is compulsory. Around 4.1% of direct payment applicants receive between €20 per hectare to €80 per hectare, depending on the member state. The biggest support for young farmers comes from the second pillar, however.
The assistance does not necessarily address the main obstacles facing young farmers, such as access to land. The result is that new entrants tend to farm smaller holdings and have difficulty in accessing the inputs at competitive prices, the study states. New entrants are also more threatened by price volatility, face difficulty in accessing finance and require training in entrepreneurial and risk management skills.
In most of the countries studied in the report, it is those who inherit existing farms, and not new entrants, who are the main beneficiaries of CAP aid for young farmers. In some countries, the aid serves as a tool, facilitating farm succession.
The young farmers’ payment, however, generally enhances the competitiveness of the farms of young farmers and new entrants.
The report recommends that this support should continue in the future but that incentives need to be found for older farmers to transfer their farms. It also suggests putting the focus on obstacles, such as access to capital and the lack of entrepreneurial skills, and lastly, differentiating between support for young farmers and support for new entrants.
On 29 November, the European Commission is due to present its communication on the future of the CAP in which the issue of young farmers is one of the main priorities (see EUROPE 11888).
The study is available by following the link: http://bit.ly/2z2Ypnt (Original version in French)