Earlier today it was confirmed that the trilogue on reforms to the Common Agricultural Policy (CAP) had resulted in a deal, which will now go before the council of agriculture ministers and the European Parliament for ratification.
Some of the key details that have been agreed had already emerged earlier. But now that an agreement has been confirmed, what are the key points?
On convergence, this has been set at 85% of the national average payment, with member states being permitted to increase this figure if they wish.
Meanwhile, 25% of the direct payments budget will be set aside to fund the the new eco-schemes.
It is understood that this 25% figure will apply throughout the lifetime of the next CAP (2023 to 2027). However, there will be a ‘learning period in 2023 and 2024, where the minimum amount of the direct payments budget to be set aside will be lowered to 20%.
If member states fail to fund eco-schemes to 20% during the learning period, they will have to make that funding up in subsequent years to meet the 25% overall target.
On the issue of redistribution of payments, this will see 10% of national direct payments reserved for small-and-medium sized farms. This will be mandatory for member states.
This may take the form of a 10% cut to direct payment to fund a redistributive payment, or other “instruments and interventions” financed through Pillar I – such as increased convergence – if member states can demonstrate in their Strategic Plans that the need for redistribution is sufficiently met in this manner.
Where capping is concerned, member states can cap the amount of direct payments received so that payment exceeding €100,000 are reduced down to €100,000 (100% capping), while payments exceeding €60,000 can be progressively decreased at lower rates.
Where capping occurs, farmers can write off 50% of agricultural-related salaries from the figure to be capped.
Young farmers will see 3% of the direct payments envelope reserved for them, while there is scope for funding for new entrant farmers in Pillar II (rural development).
Pillar II will see 35% of its budget ringfenced exclusively for environmental and climate measures.
Another key issue was that of the Good Environmental and Agricultural Conditions (GAECs).
GAEC 2 – in relation to the protection of peatlands – had generated some controversy in Ireland, but the agreement reached today will allow farming continue on these lands.
The Council of the EU (in its agriculture and fisheries configuration) will meet on Monday and Tuesday of next week with a view to ratifying the deal. The European Parliament will similarly meet in a plenary session shortly for the same purpose.
Assuming the deal is ratified by all sides, member states can then begin drafting their Strategic Plans for how they will implement the new CAP, which will be submitted to the European Commission for approval by year-end.
The new CAP is set to begin in 2023.