For the next long-term EU budget (2021-2027), the Commission proposes to modernize and simplify the Common Agricultural Policy (CAP).

With a budget of EUR 365 billion, these proposals ensure that the CAP remains a forward-looking policy, supporting farmers and rural communities, guiding the sustainable development of EU agriculture and reflecting the EU's ambition in environmental protection and combating climate change. These proposals give the Member States greater flexibility and responsibility to choose how and where to invest the corresponding amounts of the CAP in order to meet the ambitious objectives set at EU level, in the sense of achieving a sector smart, resilient, sustainable and competitive agriculture, while guaranteeing farmers' income support that is fair and better directed.

As stated by Jyrki Katainen, Vice President responsible for Employment Promotion, Growth, Investment and Competitiveness, "the common agricultural policy is one of our fundamental policies and affects the lives of all Europeans. These solid proposals will contribute to improving the competitiveness of the agricultural sector, while at the same time reinforcing its sustainability. With the new performance-based model, we offer more subsidiarity to Member States in order to increase the effectiveness of the policy and to better monitor its results. "

For his part, Phil Hogan, Commissioner for Agriculture and Rural Development, said: "This proposal responds to the Commission's commitment to modernize and simplify the common agricultural policy, providing genuine subsidiarity for the Member States, guaranteeing a European agricultural sector more resilient, and raising the climate and environmental ambition of the policy ».

The main features of the Commission's proposals for a modernized and simplified CAP are these:

1. A new way of working: Member States will have more flexibility in how to use their funding allocations, with the possibility of designing tailored programs that respond more effectively to the concerns of farmers and rural communities more spacious. Member States will also have the option of transferring from direct payments to rural development, and vice versa, up to 15% of their CAP allocations to ensure funding of their priorities and measures. The equality of conditions between the Member States will be achieved in the following way:

• Strategic plans covering the entire period will be adopted, specifying how each Member State plans to meet the nine economic, environmental and social objectives at EU level, using both direct payments and rural development. The Commission will approve each plan to ensure coherence and protection of the single market.
  
  
• The Commission will closely monitor the performance of each country and progress towards the agreed targets.

2. Fairer treatment through better targeting of aid: Direct payments will continue to be a fundamental part of the policy, guaranteeing stability and predictability for farmers. Priority will be given to supporting small and medium-sized farms, which make up the majority of the EU's agricultural sector, and to helping young farmers. The Commission remains committed to achieving a more equitable distribution of direct payments between Member States through external convergence.

Further:

• Direct payments to farmers will be reduced from € 60,000 and will be limited in the case of payments above € 100,000 per farm. Labor costs will be fully taken into account. The aim is to ensure a more equitable distribution of payments.
  
  
• Small and medium-sized farms will receive a higher level of aid per hectare.
  
  
• Countries will have to reserve at least 2% of their allocation for direct payments and dedicate the amount thus obtained to help the establishment of young farmers. This support will be complemented by financial aid for rural development and various measures to facilitate access to land and land transfers.