EU Commission sanctions higher advance CAP payments to farmers

16 Sep 2024 --- The European Commission (EC) has authorized EU member states to pay higher advances of Common Agriculture Policy (CAP) funds to farmers to alleviate liquidity issues and mounting economic pressures. Farmers can receive up to 70% of their direct payments in advance from October 16, compared with 50% currently.

Similarly, advance payments for area and animal-based interventions under rural development can be increased by up to 85% instead of the usual 75%.

“The EU farmers continue to face liquidity problems, notably due to extreme weather events, which have had an impact on yields in recent years, as well as high interest rates on European financial markets and high prices of agricultural inputs and commodities,” the EC said in an announcement on Friday. 

“To respond to these challenges, and in line with one of the CAP’s fundamental objectives to provide an economic safety net for EU farmers, a number of member states requested this authorization.”

“The Commission took swift action to provide this much-needed support to EU farmers while also ensuring legal certainty for member states.”

Several member states requested the authorization to provide greater economic security for farmers.In addition to several measures designed to bring more flexibility for farmers and national administrations taken earlier this year, the EC has also distributed part of the agricultural reserve to farmers of certain member states who faced significant difficulties due to exceptional weather.

Future of farming report

The final version of a report detailing the future of European food and farming following a lengthy consultation with agri-food stakeholders across the supply chain was presented to EC President Ursula von der Leyen on September 4.

There were mixed reactions to the Strategic Dialogue. However, many agri-food players welcomed recommendations focused on increased plant-based diets and boosting relationships with farmers.

Other stakeholders called for a more robust overhaul of the CAP, which demonstrated the deeply divided opinions over the future of farming that von der Leyen has promised to address in her second term.

The report also acknowledged that a transition toward sustainable agri-food systems must prioritize high animal welfare standards — supported by public money. A reformed CAP could help fund such a transition.

By Joshua Poole