On Wednesday 16 July, the European Commission will adopt a proposal to revise the common agricultural policy (CAP), integrating its programming and implementation into the future National and Regional Partnership Fund (NRPF), which will be included in the next Multiannual Financial Framework (MFF) 2028-2034.
This reform proposal sets out the specific rules needed to steer the CAP towards several objectives, such as contributing to more targeted income support for farmers and directing aid towards those actively involved in food security, according to a draft text (which could be amended until Wednesday’s Commission meeting) obtained by Agence Europe.
The text recalls that the 2028-2034 financial package includes the regulation establishing the NRPF, which brings together nationally pre-allocated funds, including those of the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD), currently governed by Regulations 2021/2115 and 2021/2116.
The new regulation requires that the Commission adopt CAP national recommendations, giving guidance to each Member State on how to implement the relevant specific objectives within their plan.
In order to target beneficiaries more effectively, the Commission is proposing a degressivity and capping mechanism for payments.
The following types of payment are planned:
- Area-based income support: the Commission provides for a degressive payment per eligible hectare, differentiated according to groups of farmers (young people, women, small farms, less-favoured areas). In addition, degressivity would be achieved as follows: a reduction of 25% above €20,000, a reduction of 50% between €50,000 and €75,000, a reduction of 75% above €75,000 and an absolute ceiling of €100,000 per farm;
- Payment for small farmers: annual flat-rate payment (maximum €3,000), optional for Member States;
- Payment for natural or specific constraints: compensation for less-favoured areas (mountains, poor soils, etc.), limited to additional costs or loss of income;
- Coupled income support: payment per hectare or per animal in certain sectors (milk, beef, sheep and goat meat, apiculture products, silkworms), to support sectors in difficulty or with high environmental or socio-economic value (tobacco and wine are excluded);
- Agri-environmental and climate actions: payments for voluntary commitments (organic farming, crop rotation, reduction of inputs, etc.), to support the transition to more sustainable systems. These payments will be made in several instalments, subject to full implementation;
- Support for risk management: aid for insurance or mutual funds, with a trigger threshold set at losses in excess of 20% of income or average production;
- Investment support: for modernisation, climate adaptation or diversification. This excludes land purchases (except for conservation purposes), animals (with some exceptions) and production rights.
Conditions of eligibility for payments. A new cross-compliance system called ‘farm stewardship’ is being introduced. It includes legal requirements (environment, public health, animal welfare, food safety), protection practices defined by Member States (preservation of permanent grassland, erosion control, maintenance of organic matter, protection of water courses).
Social conditionality is included (compliance with labour standards, health and safety).
The CAP beneficiary must be an active farmer. Small-scale farmers with multiple activities can be included if they carry out a minimum level of agricultural activity. Pensioners will no longer be eligible for assistance after 2032.
Young farmers. Young farmers will benefit from a starter pack with enhanced support. Each Member State will have to incorporate a generational renewal strategy into its plan, in response to persistent obstacles (access to land, basic infrastructure, social safety net).
In addition, in order to balance professional life with personal responsibilities, specific support must be provided for replacement services (in the event of illness, maternity, holidays, training). This aid may cover the costs of setting up the scheme as well as the salaries of replacement workers.
Innovation. The European Innovation Partnership (EIP-AGRI) remains an essential tool. It should encourage interactive innovation and the dissemination of practical solutions, in conjunction with the Union Research Framework Programme for the farming and bioeconomy sector and rural areas.
The Commission may adopt implementing acts which are immediately applicable in the event of extraordinary circumstances that jeopardise the continuity of income support or the implementation of planned measures.
Draft regulation: https://aeur.eu/f/hv4 (Original version in French by Lionel Changeur)