The aim of the Common Agricultural Policy (CAP) is to develop and modernize agriculture within the Member States. European farmers eligible for direct payments will be able to receive, from 1 December 2016, an unused amount from the CAP crisis reserve.
The agriculture sector has faced many crises, which is why, since 2015, the European Commission has financially supported the sector by providing more than one billion euro.
In the 2013 CAP reform, it was decided that each year an amount would be deducted from farmers direct payments to constitute an “agricultural crisis” reserve. This reserve can be used to finance needs for market support measures, for example. If not used, the amount of this reserve goes back to the farmers at the end of the year. In 2016, the amount of the agricultural crisis reserve amounts to 435 million euro.
Sources: Agriculture and rural development, Toute l’Europe