Income support funding for EU farmers - new Policy Insights
- CAP Implementation
- Agricultural Production
- CAP Strategic Plans
- Climate and Climate Change
- Environment
- Food Supply Chain
- Networking
- Rural Development
A new Policy Insights explains the package of income support options in CAP Strategic Plans covering direct payments and funds for farms located in areas with natural or other specific constraints.
More than 60% of the Common Agricultural Policy (CAP) budget is targeted to provide income support for EU farmers through a package of direct payment opportunities and funds for farms located in areas with natural or other specific constraints (ANC).
The Policy Insights publication series now includes a new edition featuring a review of income support interventions available through the CAP Strategic Plans (CSPs). This explains how income support for farmers from the CSPs is designed to help promote sustainable food systems through social, environmental and climate conditionality, while also enabling a fairer distribution of financing for farmers across the EU through targeting mechanisms.
Farmers can face significant income challenges from climate and market uncertainties that the EU Member States recognise in their national CSPs. Over EUR 185 billion of direct payments will be made available from the CAP’s European Agricultural Guarantee Fund (EAGF) to boost farmer incomes during the 2023-2027 CAP programming period. No national funds from the CSP budgets are used for EAGF direct payments providing income support. In addition, nearly EUR 19 million of ANC payments have been programmed as income support from the European Agricultural Fund for Rural Development (EAFRD).
New features of the CAP’s income support within CSPs are designed to help promote sustainable food systems through social, environmental and climate conditionality, while also enabling a fairer distribution of financing for farmers across the EU through targeting mechanisms. This complementary approach contributes to high level EU objectives by building on the achievements of previous CAP direct payments. Data dashboards and other figures for income support provide annual analyses of expenditure, confirming related trends like the high proportion of farmer income that is derived from the EU’s different direct CSP payment possibilities.
Learn more about CSP income support from the new Policy Insights publication which underlines how this substantial set of policy interventions centre on supporting the stability of EU food supplies and the resilience of rural areas.
