On 31 August 2022, the first CAP Strategic Plans of EU countries were formally approved by the Commission. The approval procedure was finalised by individual Commission Implementing Decisions. These Plans will shape how the new common agricultural policy, set to begin in 2023, will be implemented by each EU country at national level.
The approval of all 28 Strategic Plans (one for each EU country and two for Belgium) by the European Commission marks the start of the new Common Agricultural Policy, scheduled on 1 January 2023. Each Plan combines a wide range of targeted interventions addressing the specific needs of that EU country and deliver tangible results relating to EU level objectives, while contributing to the ambitions of the European Green Deal.
In light of the ongoing commodity and energy price surge following the Russian aggression against Ukraine, the Commission had invited Member States to consider reviewing their CAP Strategic Plans to strengthen the resilience of the sector, scale up the production of renewable energy and reduce dependence on synthetic fertilisers with more sustainable production methods, in line with the Communications on food security and fertilisers. To remain fit for purpose in light of the rapidly changing challenges, the CAP Strategic Plans will be closely monitored and amended as needed during the implementation period.
€264 billion of EU funding will support European farmers in the transition towards a sustainable and resilient agricultural sector, and help preserve the vitality and the diversity of the rural areas. Cofinancing and complementary national financing will bring the total public budget dedicated to farmers and rural communities to €307 billion for the 2023-2027 period. Other programmes falling within the remit of the CAP but outside the CAP Strategic Plans, such as the POSEI programme for outermost regions, the EU school scheme, promotion programmes, will benefit from an additional EU funding of €6 billion.
A fairer CAP
All Strategic Plans support viable farm income and resilience of the agricultural sector as a key objective. Small and medium-sized farms in 25 EU countries will receive higher income support thanks to a
redistributive payment amounting to 10.6% of all direct payments. This will amount to €4 billion annually. This is 2.5 times more than the redistributive payments under the current CAP (2014-20) only applied by ten Member States. The level of support for protein crops/legumes through coupled income support will increase by 25% compared to 2022. This will help reduce the dependence of EU farmers on imports and use of certain fertilisers.
A greener CAP
Three out of ten of the CAP's specific objectives directly concern the environment and climate. This results in the most ambitious CAP ever from an environmental and climate perspective. In the CAP Strategic Plans, close to €98 billion, corresponding to 32% of the total CAP funding (EU and co-financing) will be devoted to delivering benefits for the climate, water, soil, air, biodiversity and animal welfare, and to encourage practices beyond the mandatory conditionality. The CAP support for organic production in 2027 will almost double compared to the area funded in 2018. This will be a major contributor to reaching Member States' national ambitions for increasing the organic area that range from 5 to 30% in 2030. Planned investments in renewable energy production on farms will add 1.556 MW to the EU's energy production capacity.
A more social CAP
Specific support to young farmers features prominently in each approved Plan, and EU countries went beyond the minimum requirement of dedicating 3% of their direct payments to generational renewal. Overall, a total of €8.5 billion of public spending will help young farmers set up, invest and maintain their business in their first years of activity. In the 2023-2027 period, a total of 377 000 new young farmers are expected to be established as farmers in full capacity. Local development is also boosted by 7.7% of the European agricultural fund for rural development (EAFRD) dedicated to community-led local development strategies (the so-called LEADER approach). This represents €5 billion. Once put in place, these strategies are expected to cover 65% of the European rural population. For the first time, CAP payments will be linked to the respect of certain EU social and labour standards and beneficiaries will be incentivised to improve working conditions on farms.
The Plans will support investments to make living and working in rural areas more attractive, aiming to create at least 400,000 jobs. Equally, support to investment in digital technologies and services to optimise resource efficiency will be provided. More than 6 million people will directly benefit from CAP funded advice, training and knowledge exchange, or will participate in innovation projects under the European Innovation Partnership with a focus on environmental and climate performance or social and rural aspects.
