The European Commission announced on Thursday 2 April, in its package of new measures to combat the negative effects of the coronavirus pandemic, proposals to further relax and simplify certain provisions of the Common Agricultural Policy (CAP).
The Commission had already supported the extension of the deadline for CAP payment claims (see EUROPE 12455/10): the new deadline for submitting claims will be extended by one month, from 15 May to 15 June 2020, which will give farmers more time to complete their applications for direct payments and funds under rural development programmes.
Higher advances of payments. To increase farmers' cash flow, the Commission is committed to increasing advances on direct payments (from 50% to 70%) and on rural development payments under the second pillar of the CAP (from 75% to 85%). Farmers will start receiving these advances from mid-October.
Reduction of physical on-the-spot checks and leeway for timing requirements. EU countries must carry out checks to ensure that the eligibility conditions are met. However, in the current exceptional circumstances, it is crucial to minimise physical contact between farmers and the inspectors carrying out the checks. This measure will help to reduce the administrative burden and avoid unnecessary delays. The Commission has yet to formally present these proposals.
In addition, the 'Coronavirus Response Investment Initiative Plus (CRII+)' introduces exceptional flexibility in the use of the European agricultural fund for rural development (EAFRD) (see other news).
Farmers and other rural development beneficiaries will be able to benefit from loans or guarantees of up to €200,000 at favourable conditions, such as very low interest rates or favourable payment schedules. (Original version in French by Lionel Changeur)