Future of the CAP: Commission publishes recommendations to 27 EU countries for CAP national strategic plans

• The Commission provided each EU country with tailor-made recommendations, accompanied by a communication, to help draft their national CAP strategic plans by identifying key areas on which EU countries should focus on
• The recommendations aim to ensure
• the achievement of the 9 specific CAP objectives
• their contribution to Green Deal EU level ambitions and more specifically six Farm to Fork and Biodiversity strategy targets.
• Once submitted by the Member States the Commission will approve the CAP strategic plans, using the recommendations as an important reference document to assess the plans
• The outcome of the negotiations with the co-legislators will determine the specific timeline regarding the CAP strategic  plans, including the formal submission by Member States and the Commission's approval.
  • if a political agreement is concluded by spring 2021, the Member States would then have until 1 January 2022 to submit their plans

The European Parliament and Council agreed on their negotiating positions on the reform of the CAP respectively on 23 and 21 October 2020. The factsheet "Working with Parliament and Council to make the CAP reform fit for the European Green Deal" provides an overview.

In 2018, the European Commission put forward its Future Common Agricultural Policy (CAP) proposal, aiming at making the EU farm policy more sustainable, resilient and flexible so that it can continue to deliver food security across the EU.

Commission's proposal consisted of three regulations: the CAP strategic plan regulation, the Horizontal regulation, and amendments to the Common Market Organisation (CMO) regulation.

A new green architecture

For 2021-2027, at least 30% of total EU expenditure will contribute to climate action. The CAP should contribute to this objective with 40% of its overall expenditure.

The Member States will be obliged to demonstrate, in their CAP strategic plans, how they will achieve a greater level of ambition than at present in terms of environment and climate objectives through the “no backsliding” principle.

The enhanced conditionality proposed by the Commission links direct payments and certain rural development measures to a new way of working, with more environment- and climate-friendly farming practices and standards known as 'Statutory Management Requirements' (SMRs) and ‘Good Agricultural and Environmental Conditions' (GAECs). 

A completely new feature are the so-called mandatory eco-schemes in the first pillar, which are annual commitments and payments meant to reward farmers for going even further in the implementation of sustainable agricultural practices (e.g. agroecology, precision farming, carbon farming).

Finally, the Commission proposes the ring-fencing of 30% of the expenditure in rural development for environmental and climate management commitments without payments for areas with natural constraints.

Through such measures, the CAP will place agriculture at the heart of the European Green Deal, as well as the EU's ambitious biodiversity and farm to fork strategies.

A better targeting of direct payments: the income support will remain an essential part of the CAP and direct payments will continue to be based on the farm's size in hectares. However, the future CAP must prioritise small and medium-sized farms and encourage young farmers to join the profession.

This is why the Commission has proposed:

• a higher level of support per hectare for small and medium-sized farms (redistributive payment);
• to reduce the share of direct payments received above €60,000 per farm and to limit payments at €100,000 per farm (capping), with a view to ensuring a fairer distribution of payments;
• a minimum of 2% of Member States' direct payments envelopes for young farmers, to be spent on dedicated measures under both pillars of the CAP, and measures facilitating access to land and land transfers;
• EU countries having to ensure that only genuine farmers receive support.

A new way of working: strategic plans and performance-based approach

The European Commission proposes to simplify and modernise how the CAP works, shifting the emphasis from rules and compliance towards results and performance.

National governments will have to produce a CAP strategic plan, analysing their specific situation in terms of strengths, weaknesses, opportunities and threats (SWOT analysis) and linking it to their needs. Based on this analysis, member states propose how to implement the relevant CAP instruments to achieve the CAP objectives on the ground. The Commission will assess and approve the plans for the budgeting period, while reviewing Member States' performance based on key indicators on a yearly basis.

Farmers are at the heart of Europe's rural communities, providing vital public goods.

The future CAP proposes to develop, support and invest in our rural communities, by:

• helping new generations of farmers to join the profession, through encouraging knowledge transfer from one generation to the next and improving access to land for young farmers;
• promoting employment, growth, social inclusion and local development in rural areas, including bio-economy and sustainable forestry;
• improving the response of EU agriculture to societal demands on food and health, including safe, nutritious and sustainable food, food waste, as well as animal welfare;
• providing continued support for rural communities through the smart villages initiative and community-led local developments under the LEADER programme.

The last reform of the EU farm policy, established in 1962, dates back to 2013.

Current CAP rules expire on 31 December 2020. They should be replaced by transitional rules until the ongoing CAP reform is agreed and approved by the Parliament and Council.