On Wednesday 2 May, the European Commission proposed reform of the Common Agricultural Policy (CAP) and a 5% reduction in its budgetary envelope over the period 2021-2027. It suggests that the aid “greening” system should be reviewed and direct payments capped.
Considering it to be “unacceptable”, France has already stated its opposition to the plan to reduce the CAP budget by 5%, in current euro.
Once reformed, with a budget of €365 billion (€286 billion for the European Agricultural Guarantee Fund and €78.8 billion for rural development), the policy would remain based on two pillars: direct payments in favour of farmers and the funding of rural development. For the latter pillar, the Commission advocates increasing national co-funding rates.
There will no longer be aid “greening”, as currently implemented, but rather a more targeted, ambitious and yet flexible approach to integrate conditionality, and green direct payments as well as the current climate and agri-environmental measures, with a view to raising the level of the CAP’s environmental and climate ambition.
Under the current system, 20% of farmers receive 80% of direct payments, with payments being linked to land concentrated among a minority of farmers. Direct payments for farmers will remain an essential part of EU policy but that aid will be simplified and better targeted.
A more balanced breakdown in the allocation of aid will be encouraged and there will be a compulsory capping of amounts received or degressive payments at farm level.
Direct payments per hectare paid to the various member states will continue to converge on the EU average. The new policy will require a higher level of environmental and climate ambition with strengthening of the conditionality of direct payments, reserving a large part of funding intended for rural development to measures that will be beneficial for the environment and climate, and introducing voluntary environmental programmes in the budget for direct payments.
Finally, a new crisis reserve will be established to face crises resulting from unforeseeable developments on international markets or specific shocks for the farm sector resulting from action by third countries. (Original version in French by Lionel Changeur)