CAP budget ‘agreed’ for the next 7 years
It was a historic start to the day this morning, Tuesday, July 21, with a significant breakthrough in budget negotiations in Brussels.
Earlier today, the budget for the Common Agricultural Policy (CAP) was announced for the next seven years by the European Council. A figure of €356.3 billion (please see the qualifier in the box below) has been allocated under the heading of ‘Natural Resources and Environment’.Also Read: Table: How much CAP money is earmarked for farmers over the next 7 years?
While retaining Pillar I and Pillar II sub-headings (for CAP), a new delivery model brings both pillars under a single programming instrument – namely the CAP Strategic Plan.
The document outlines an upper limit of €239.9 billion for direct payments under the CAP Strategic Plan Regulation.
A voluntary cap on direct payments, for “large beneficiaries”, will be introduced – at €100,000. It will apply only to the Basic Income Support for Sustainability (BISS).
When applying capping, member states may “subtract all labour-related costs from the amount of BISS per beneficiary”.
External convergence of direct payments will continue. The council has stated that it will “close the gap”. It explained: “All member states with direct payments [per hectare] below 90% of the EU average will close 50% of the gap between their current average direct payments and 90% of the EU average in six equal steps – starting in 2022”.
This will be “financed proportionately by all member states”.
The share of CAP expenditure that is expected to be dedicated to climate action is 40%.