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Additionally, EU countries can choose to offer other payments that focus on specific sectors or types of farming. There are specific schemes designed to help small and medium sized farms, young farmers, farmers who operate in areas of natural constraint and/or sectors undergoing difficulties.
(1) On 20 May 2022 the EU authorized an exceptional measure funded by the European Agricultural Fund for Rural Development (EAFRD) to allow Member States to pay a one-off lump sum to farmers and agri-food businesses affected by significant increases in input costs. Such increases in prices, notably for energy, fertiliser and animal feed, are disrupting the agricultural sector and rural communities, leading to liquidity and cash flow problems for farmers and small rural businesses active in processing, marketing or development of agricultural products. This represents an additional potential budget of €1.4 billion. which is added to 291.3 billion of EAGF. ​2. Rural development Fund (EAFRD) |
Financial allocation: €95.5 billion
Period: 7 years (2021-2027) Rural development is the "second pillar" of the common agricultural policy (CAP), reinforcing the 'first pillar' of income supports and market measures. Its fund complements national projects focusing on strengthening the social, environmental and economic sustainability of rural areas. This support is offered with national and regional programmes to address the specific needs and challenges facing rural areas. For the EAFRD (the CAP’s “second pillar”), the total allocation amounts to €95.5 billion. This includes €8.1 billion from the next generation EU recovery instrument to help address the challenges posed by the COVID-19 pandemic. Around 30% of the recovery funds will become available in 2021, with the remaining 70% to be released in 2022. 3. Market measures |