Question to the EC: CAP – payment of first-pillar aid and applicability of transitional regulation

See Francisco Guerreiro’s question to the European Commission and the written answer on the Common Agricultural Policy (CAP) and the payment of first-pillar aid and applicability of transitional regulation.

Subject: CAP – payment of first-pillar aid and applicability of transitional regulation 

On 31 October 2019, the Commission published two proposals for regulations regarding transition between CAP support frameworks. The first (annexed), which is to be approved by the end of the year, is a Commission proposal for a regulation amending Regulation (EU) No 1306/2013 on financial discipline as from financial year 2021 and Regulation (EU) No 1307/2013 as regards flexibility between pillars in respect of calendar year 2020. 

The Spanish Government has issued a technical note (paragraph 5), indicating that implementation of the Commission’s proposals may already be affecting first-pillar aid for 2020. 

Is it true that first-pillar CAP funding for 2020 will be met from 2021 (the new Community Support Framework) and will therefore also be subject to the transitional provisions and, in particular, the cuts contained in the Commission proposals for regulations?

Answer in writing

The two Commission proposals(1) aim to provide continuity for support to farmers for the transitional year 2021 for which the new legislative framework for the common agricultural policy (CAP) is not in place yet. 

The first proposal ensures that Member States continue to have the possibility to make transfers of funds between the CAP pillars in calendar year 2020/financial year 2021 and allows applying financial discipline in financial year 2021. 

The second proposal fixes the budgetary allocations that will be available to Member States in year 2021 and makes the necessary adaptations to apply the current rules during that year.

The proposed allocations for year 2021, including for direct payments, are in line with those of the proposal for the multiannual financial framework (MFF) Regulation. The proposal for the continuity of CAP support is dependent on the adoption of the proposal for the MFF Regulation and would need to take into account the allocations adopted in this framework. 

The continuation of the system of direct payments in claim year 2020 is not subject to the transitional provisions. However, it is correct that first pillar direct payments to farmers for claim year 2020 are paid and financed in financial year 2021 and therefore under the 2021-2027 MFF. Consequently, and subject to the outcome of the MFF negotiations, the payments to be made in financial year 2021 in respect of claim year 2020 direct payments may have to be adjusted in order to respect sub-ceiling for the European Agricultural Guarantee Fund for 2021.

(1)       Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1306/2013 as regards financial discipline as from financial year 2021 and Regulation (EU) No 1307/2013 as regards flexibility between pillars in respect of calendar year 2020 (COM/2019/580 final) and Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down certain transitional provisions for the support by the European Agricultural Fund for Rural Development (EAFRD) and by the European Agricultural Guarantee Fund (EAGF) in the year 2021 and amending Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 as regards resources and their distribution in respect of the year 2021 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards their resources and application in the year 2021 (COM/2019/581 final).

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