It appears that the current Common Agricultural Policy (CAP) of the European Union will be extended not by one, but by two years. Negotiators from the European Parliament and the EU Agriculture Ministers have reached an agreement on this.
The European Commission wanted to extend the current subsidy schemes for just one year, pending the new EU multiannual budget 2020 – 2027, together with the new Agriculture budget.
The political groups in the European Parliament and the 27 agriculture ministers have pointed out how difficult the negotiations over the Agriculture budgets have been in recent years. They still have not reached agreement on the current budget (for 2021).
On top of that, the new Green Deal merges a large number of 'green' policy areas, including their associated budgets. The final word has not yet been spoken on this either.
The negotiators from the Parliament and Council have now reached a partial agreement. This at least ensures the continuation of payments to farmers and subsidy recipients for rural development, providing predictability and stability for the sector over the next two years. It is unlikely the European Commission will refuse to implement this CAP agreement.
The Parliament has also implemented measures that give EU countries more flexibility in supporting farmers, especially during the COVID-19 crisis. These include easing state aid rules so that governments can offer tax deferrals without these being considered state aid within the EU.
The possibility for compensation due to severe income losses and losses caused by adverse weather conditions, outbreaks of animal or plant diseases is also expanded. The threshold to qualify for compensation has thus been lowered from 30% losses to 20% losses.
At the proposal of MEPs, the ministers have now also agreed that the duration of new rural projects aimed at organic farming, animal welfare and environmental-climate measures be extended to five years. The European Commission originally proposed a maximum duration of three years, and only for organic and climate- and environment-related projects.