On Tuesday 21 October, the European Commission is due to present an ambitious package of measures aimed at doubling the number of young farmers under the age of 40 in the EU by 2040, from 12% to 24%.
According to a draft communication obtained by Agence Europe, this strategy for generational renewal in the agricultural sector, prepared by the services of European Commissioner for Agriculture Christophe Hansen, is based on several pillars: financial support, access to land and training, improving living conditions in rural areas and reforming pension systems. Enhanced governance will be put in place to ensure its implementation by the Member States.
The Commission is suggesting that EU countries take action to devote at least 6% (compared with 3% today) of Member States’ agricultural spending to generational renewal through the ‘National and Regional Partnership Plans’ (NRPPs) proposed for the period 2028-2034 (see EUROPE 13682/4).
Access to credit. The Commission recommends tripling the ceiling for common agricultural policy (CAP) support to help young farmers set up, from €100,000 to €300,000, using financial instruments, in order to reduce interest rates or increase loan volumes. It also proposes increasing the rate of Community investment support to 85% for young farmers and creating dedicated loan and guarantee funds, with advantageous conditions (reduced rates, grace periods, etc.). Another possibility mentioned was using European funds (Competitiveness Fund, InvestEU) to support young farmers’ projects.
Training. The Commission is proposing to strengthen Agricultural Knowledge and Innovation Systems (AKIS): mentoring, and training in business management, sustainability and innovation. It also mentions developing exchange programmes such as Erasmus for young entrepreneurs. Other ideas referred to in the communication include adapting agricultural curricula to modern needs (digitalisation, agro-ecology, diversification) and creating a ‘best practices pack for tomorrow’s farmers’ for agricultural schools, including concrete examples of diversification and innovation.
Access to land. The Commission confirms its desire to launch a European Land Observatory to improve the transparency of land transactions and combat speculation. It also mentions the need to facilitate farm transfers through tax incentives, pre-emption rights and mechanisms to match transferors and transferees. Another measure would be to support alternative models (land cooperatives, land banks and long-term leases) and reduce transaction costs for small farms.
Resilience. In this area, the Commission is considering the following actions: improving rural services (childcare, health, transport and housing to make rural life attractive), diversifying income (support for agritourism, renewable energy, short supply chains and the circular economy), creating a ‘young rural ambassadors’ programme to promote the image of agriculture and attract new talent, and strengthening social protection (pensions, parental leave and health cover, including mental health cover, for farmers).
Retirement and inheritance. The draft communication emphasises the idea of linking CAP direct aid to retirement age: farmers receiving a pension will no longer receive direct aid from 2032 onwards in order to encourage people to leave the sector.
Other measures recommended by the Commission include reforming pension systems to guarantee a decent retirement and facilitate farm transfers, and supporting succession planning through advisory services (AKIS) and tax incentives.
The Commission wants each Member State to develop an integrated generational renewal strategy by 2028. A ‘Starter Pack’ is available for young farmers, including help with setting up, investment and access to credit. The Commission is also proposing that an annual dialogue with young farmers be organised and plans to evaluate progress in 2029 as far as this strategy’s implementation.
The institution expects the new CAP rules and ‘National and Regional Partnership Plans’ to come into force in 2028.
Between 2002 and 2022, the proportion of the European population aged over 65 rose from 16% to 21%, while that aged 0-19 fell from 23% to 20% (Eurostat). This demographic imbalance is particularly marked in rural areas, where the young population decreased by 47% between 2013 and 2019 (from 3.6 million to 1.9 million for 15–24-year-olds and from 6.9 million to 5.9 million for 25–29-year-olds).
Link to the project: https://aeur.eu/f/j1g (Original version in French by Lionel Changeur)