In addition to the proposals on the European Union’s Multiannual Financial Framework (MFF) for 2028–2034, on Wednesday 16 July the European Commission adopted a proposal to change the rules of the Common Agricultural Policy (CAP).
The European Commissioner for Agriculture and Food, Christophe Hansen, has taken action to preserve the common nature of the CAP and all the existing tools. He gave assurances that “after 2027, the CAP retains its entire toolbox” (see EUROPE 13680/3).
On the subject of direct payments, Mr Hansen insisted on maintaining hectare-based funding. Area support will be ringfenced and fully financed by the EU budget. “And this does not change. But we are making other proposals to make sure that it supports those who need it the most”. The degressivity and capping of aid will ensure that young, small, and family-sized farms get adequate support. The amounts freed up can be reinjected for the benefit of farmers or certain sectors if the Member States so wish.
Farmers likely to suffer losses as a result of capping such as this will be able to benefit from compensation. Member States will also have more means of targeting ‘farmers who actively contribute’ to food security.
To enable effective generational renewal, it is proposed to phase out income support for farmers already receiving a national pension, with a suitable transitional period.
Income support remains essential. “We are increasing the maximum spending to 20% from the current 13%, with a possibility for member states to add additional 5% for sectors they want to promote in particular, and for sensitive regions like Eastern border, where livestock farming is particularly important”, explained Mr Hansen.
The approach to cross-compliance, known as “farm stewardship”, has been clearly streamlined. The mandatory requirements set out in the legislation are maintained, but GAECs are replaced by protective practices that Member States will define themselves according to their specific needs.
Farmers will be financially incentivised to do more for the environment, climate, biodiversity and animal welfare. A new category of ‘transition payments’ will be created, in the form of a lump sum of up to €200,000, to reduce the risks associated with the transition to more sustainable agriculture.
The proposal on CAP reform (https://aeur.eu/f/hwz ) (see EUROPE 13680/4) on the Common Market Organisation (https://aeur.eu/f/hx0 ).
See the Commissioner’s speech to the European Parliament’s Committee on Agriculture and Rural Development: https://aeur.eu/f/hx1 (Original version in French by Lionel Changeur)