- EU farm subsidies and rural development funding to continue uninterrupted
- EU recovery aid for farmers, food producers and rural beneficiaries part of the package
- Transition to last for two years, all recovery money to be released during that period
The EP Agriculture Committee endorsed on Tuesday the agreement with the Council on the basic set of rules to ensure a smooth transition from the current EU farm policy to the future one.
The text agreed by Parliament’s and Council’s negotiators extends the application of existing Common Agricultural Policy (CAP) rules, which are due to expire at the end of 2020, until the end of 2022, and thus ensures that payments to farmers and rural development beneficiaries can continue.
Thanks to MEPs, member states will be allowed to make it easier for farmers to get compensation for severe drops in income and for losses caused by adverse climatic events, outbreaks of animal or plant diseases or pest infestations. Parliament also pushed through measures that give member states more leeway in supporting farmers, especially during the COVID-19 crisis.
MEPs also managed to extend the duration of new multiannual rural development projects focused on organic farming and climate and environmentally-friendly measures from three to five years and include animal welfare projects in the package. More information about the deal on transitional rules is available here.
Speeding up delivery of €8 billion in aid to farmers
Recently agreed rules on ways to use the €8.07 billion in aid for farmers, food producers and rural areas to finance their recovery in the next two years are also part of the overall deal. Around 30% of the recovery money will become available in 2021, and the remaining 70% would be released in 2022, says the agreed text.
MEPs managed to secure at least 37% of the recovery funding for organic farmers, for environment and climate-related actions and for animal welfare. At least 55% of the fund will support young farmers’ start-ups and on-farm investments that contribute to a resilient, sustainable and digital recovery.
The share of recovery funding that EU countries will spend on environmentally beneficial practices should not be lower than the percentage of the EU rural development envelope they currently spend to this end. More information about the agreed EU recovery package is available here.
Reactions from Parliament’s rapporteurs on the transitional EU farm policy rules Elsi Katainen (RE, FI) and on the EU recovery package Paolo De Castro (S&D, IT) following the finalisation of the overall agreement on the key 2021-2022 CAP provisions is available here.
The text provisionally agreed by MEPs and the German Council Presidency and endorsed in the Parliament’s Agriculture Committee by 40 votes in favour to three against still needs a green light from the full House and from the Council before it can enter into force. The Parliament could vote on it during the 14 - 17 December plenary session.
The draft regulation is the second of two proposals tabled by the European Commission to ensure a smooth transition to the post-2020 CAP. The first set of transitional rules was approved by the Parliament in December 2019.
The main elements of the second set of transitional rules were provisionally agreed with the Croatian Council Presidency on 30 June. Following a separate deal to distribute the EU recovery and resilience aid for farmers, food producers and rural areas, reached with the German Council Presidency on 10 November, the deal on the entire package was confirmed by Parliament’s and Council’s negotiators on 27 November.
The post-2022 EU farm policy reform will be co-decided by the European Parliament and Council of the EU (agricultural ministers). Both transitional rules and the CAP reform package are closely linked to the work on the EU’s long-term 2021-2027 budget.
Type of document: Regulation