The European Council this Friday reached an informal agreement with the European Parliament on how to extend the current rules of the CAP until the end of 2022 and distribute the additional 8.07 billion euros from the European recovery instrument to European farmers. This informal agreement is a continuation of an initial agreement in June.

The informal agreement describes a division of the recovery money over the next two years: 30% of € 8.07 billion will be available in 2021 and 70% in 2022. It also instructs member states to secure around a third of the budget total (37%) for ecological and animal welfare measures and more than half of the total budget (55%) for social and digital transformation measures. Negotiators hope these measures will help accelerate the transition to practices such as precision and smart agriculture, improve access to high-quality ICTs in rural areas, and strengthen local markets.

The negotiators also agreed to extend the application of the exceptional temporary support to farmers and SMEs affected by the COVID-19 crisis for six months. They also agreed that the outermost regions of the EU and the smaller islands of the Aegean Sea will continue to receive in 2021 and 2022 the same amounts of financial support as described in the current rules.

The negotiated text has yet to be approved by the Council's Special Committee on Agriculture and will then be presented for final adoption by the Council and the European Parliament as soon as possible.The European Council has approved a transition period given the current situation of the discussions on CAP reform in the European Parliament and the Council, as well as ongoing MFF negotiations, as it became clear that the legislative procedure would not be completed in time to implement the new rules and CAP strategic plans as January 1, 2021. Therefore, it was necessary to plan a transitional period. The European Commission proposed in October 2019 an extension of the existing legal framework of the CAP. The Presidency obtained a partial mandate for negotiations with the European Parliament on April 6, 2020.

Marija Vučković, Croatian Minister of Agriculture: "The extension of the current rules for two more years and until the new CAP is agreed and implemented, provides the predictability and certainty that all farmers in Europe need so badly during the COVID crisis -19. The EU will continue to fund rural development programs and offer support to European farmers through direct payments, while ensuring a smooth transition to the next CAP period. The extension will allow uninterrupted payments to farmers and other beneficiaries. In addition, within these two years, member states will have time to prepare their strategic plans under the new CAP legislation and to plan their implementation after approval by the Commission. "

The final adoption of the transitional regulation is expected by the end of 2020, as it is closely linked to the multiannual financial framework (MFF) that is currently being negotiated.

European Comission

For its part, the European Commission welcomes the political agreement reached on Friday between the European Parliament and the EU Member States in the Council on the provisions of the common agricultural policy (CAP) for the transitional period 2021-2022. These rules are based on the principle of continuity of the current CAP rules, while including new elements to ensure a smooth transition. The agreement also includes the integration of funds from the European Recovery Instrument into the European Agricultural Fund for Rural Development (EAFRD), to enable agricultural and rural economies to recover after the coronavirus pandemic. Janusz Wojciechowski, Commissioner for Agriculture and Rural Development, said: 'I am very satisfied with the political agreement on the transitional provisions of the CAP, which provides vital security to our farmers, especially in these unprecedented times. The CAP will continue to support our farmers and agri-food producers, while at the same time strengthening our ambition on the environment and climate, thanks to the use of recovery funds to promote rural development. Now we are going to work to reach an agreement soon on the reform of the CAP ». The Commission presented its proposals for the reform of the CAP in June 2018. The transitional provisions will ensure the continuity of income support for farmers until the new CAP enters into force.

Background

Given the current state of play in the discussions on CAP reform in the European Parliament and the Council, as well as the ongoing MFF negotiations, it was clear that the legislative procedure would not be concluded in time to implement the new rules and strategic plans of the CAP as of 1 January 2021. Therefore, it was necessary to plan a transitional period. The European Commission proposed in October 2019 an extension of the existing legal framework of the CAP. The Presidency obtained a partial mandate for negotiations with the European Parliament on 6 April 2020. As the European Parliament and the Council have informally developed a common understanding on the transition period, only the issues related to the MFF remain open.