As for costs for national authorities, they are estimated at around 3% of the CAP budget, having increased by a third since the implementation of a new system to control and manage payments in 2013. Those are among the main findings of the study ‘Analysis of administrative burden arising from the CAP', published today by the European Commission.

The general objective of this study is to examine the costs and administrative burden, including the effectiveness and efficiency, of current systems for managing and controlling a large share of common agricultural policy (CAP) expenditure. Specifically, the study analyses and assesses different elements of the integrated administration and control system (IACS) as well as Land Parcel Identification System, related control mechanisms, and costs associated to cross-compliance. Cross-compliance is a set of basic rules, setting the standards for public, plant and animal health and animal welfare that farmers have to follow to receive income support.

According to the study, the CAP administrative costs are below or similar when compared with other EU policies. For example, the overall rate for the European Structural and Investment Funds (ESIF) are estimated at 4%, while the overall administrative costs of the EU represent around 6% of the total EU budget.

Furthermore, the study found that the average annual costs of IACS is estimated at €10 per hectare of utilised agricultural area (UAA). For the EU as a whole, this represents between €1.7 billion and €1.9 billion. This includes 14% linked to set-up costs, 12% to running costs, and 74% to management and control costs.

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