CAP – COMMON AGRICULTURAL POLICY

Created by the Treaty of Rome in 1957, it was set up in 1962. On 26 June 2013, the European Ministers of Agriculture, the European Parliament and the European Commission agreed on the CAP rules for the period 2014-2020. The four texts (direct payments, rural development, common organization of the market , Financing, management) leave States more freedom than in the previous reforms.

The agricultural expenditure is financed by two funds, which form part of the EU’s general budget: the European Agricultural Guarantee Fund (EAGF) which primarily finances direct payments to farmers and measures to regulate agricultural markets, and the European Agricultural Fund for Rural Development (EAFRD) which co-finances the rural development programmes of the Member States.

The EAGF and EAFRD are implemented in shared management between the Member States and the Union. This means among others that the Commission does not make payments directly to the beneficiaries of aid; this task is delegated to the Member States.

Objectives

* Increase the productivity of agriculture;
* Ensure a fair standard of living for the agricultural population;
* Stabilize markets;
* Ensuring the security of supplies;
* Ensure reasonable prices for consumers;

Financed actions

* In the frame of direct payments: stabilization of farmer’s incomes, viability of farms, sustainable agricultural practices
* In the frame of market measures: promotion of EU farm products, EU school schemes.
* In the frame of Rural development programmes: on-farm investment & modernisation, installation grants for young farmers, agri-environment measures, organic conversion, agri-tourism, village renewal.
– Direct payments are administered through paying agencies appointed by national authorities
– Market measures are administered through paying agencies appointed by national authorities
– Funds for rural development are disbursed through programmes run by national governments: the government appoints the Managing Authority whose task is to inform potential beneficiaries of the support that is available, the rules that apply and the level of the EU contribution