IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 May 2015 | Removal date: 31 Dec 2022

Financial grant

On 9 September 2015, the Luxembourgian government announced the ‘Règlement grand-ducal du 30 juillet 2015 portant application, au Grand-Duché de Luxembourg, des règles relatives aux paiements directs en faveur des agriculteurs au titre des régimes de soutien relevant de la politique agricole commune’, establishing the eligibility criteria and requirements of the direct income payment scheme. Under the scheme, eligible local farmers receive direct income payments under the European Agricultural Guarantee Fund (EAGF). The 2015-2020 budget for these Luxembourgian payments was set out in Regulation (EU) No 1307/2013 at EUR 168 million (approx. USD 187.6 million). 

Income support measures to farmers take the form of financial grants. According to Regulation (EU) No 1307/2013, beneficiaries are active farmers that meet minimum requirements further specific by member states. In the case of Luxembourg, the mentioned regulation establishes the national eligibility criteria and requirements to be met by applicants, including by referring to a set of provisions included in other regulations and standards. The requirements relate to good agricultural practice and good environmental conditions and must be met by beneficiaries of the scheme.

The payments will be managed by the Luxembourgian Rural Economy Department (SER), that operates under the authority of the Government whose remit includes the Department of Agriculture and Viticulture.

The measure entered into force on 1 May 2015 and shall be applicable until the end of 2020. Prior to the measure, Luxembourg was financing its income support payments primarily from the 2007-2013 budget of the EAGF which was established under a different subset of rules. In order to grant income support payments to Luxembourgian farmers using the budget from the 2015-2020 budget, Luxembourg needed to establish the national rules for the 2014-2020 CAP framework. 

EU's CAP framework
The CAP framework is the EU-wide agricultural policy established in 1962 that is subject to reforms and new rules every six years. According to the EU, it aims to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food. Under the CAP, Member States provide three main types of support to the agriculture sector: (i) income support measures, (ii) market measures; and (iii) rural development measures. The two first are primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).

Update

On 28 December 2020, the European Commission adopted Regulation (EU) 2020/2220 setting out the 2021-2022 transitional budgets for the Luxembourgian income support payments provided under the European Agricultural Guarantee Fund (EAGF). The additional budget was set at EUR 65.5 million (approx. USD 80 million), increasing the overall budget for the 2015-2022 period from EUR 168 million (approx. USD 187.6 million) to EUR 233.5 million (approx. USD 267.6 million). 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1001 Wheat and meslin.
100199 Other
1005 Maize (corn).
100590 Other
012 Vegetables
0709 Other vegetables, fresh or chilled.
070999 Other
013 Fruits & nuts
0802 Other nuts, fresh or dried, whether or not shelled or peeled.
080251 In shell
014 Oilseeds & oleaginous fruits
1205 Rape or colza seeds, whether or not broken.
120510 Low erucic acid rape or colza seeds
015 Edible roots & tubers with high starch or inulin content
0701 Potatoes, fresh or chilled.
070190 Other
021 Live animals
0101 Live horses, asses, mules and hinnies.
010129 Other
0102 Live bovine animals.
010229 Other
0103 Live swine.
010391 Weighing less than 50 kg
010392 Weighing 50 kg or more
211 Meat & meat products
0201 Meat of bovine animals, fresh or chilled.
020120 Other cuts with bone in
020130 Boneless
0203 Meat of swine, fresh, chilled or frozen.
020312 Hams, shoulders and cuts thereof, with bone in
020319 Other
1601 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products.
160100 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products.
1602 Other prepared or preserved meat, meat offal or blood.
160249 Other, including mixtures
214 Prepared & preserved fruits & nuts
0801 Coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled.
080132 Shelled
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included.
200811 Groundnuts
200819 Other, including mixtures
216 Vegetable oils
1507 Soyabean oil and its fractions, whether or not refined, but not chemically modified.
150710 Crude oil, whether or not degummed
219 Oil-cake; flours & meals of oil seeds; vegetable waxes; etc.
2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
230400 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
221 Processed liquid milk, cream & whey
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter.
040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %
040150 Of a fat content, by weight, exceeding 10 %
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.
040310 Yogurt
040390 Other
0405 Butter and other fats and oils derived from milk; dairy spreads.
040510 Butter
0406 Cheese and curd.
040610 Fresh (unripened or uncured) cheese, including whey cheese, and curd
040620 Grated or powdered cheese, of all kinds
040630 Processed cheese, not grated or powdered
040640 Blueveined cheese and other cheese containing veins produced by Penicillium roqueforti
040690 Other cheese
2105 Ice cream and other edible ice, whether or not containing cocoa.
210500 Ice cream and other edible ice, whether or not containing cocoa.
231 Grain mill products
1101 Wheat or meslin flour.
110100 Wheat or meslin flour.
1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of
190120 Mixes and doughs for the preparation of bakers' wares of heading 19.05
233 Preparations used in animal feeding; lucerne meal & pellets
2309 Preparations of a kind used in animal feeding.
230990 Other
234 Bakery products
1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.
190531 Sweet biscuits
190532 Waffles and wafers
235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170199 Other
236 Cocoa, chocolate & sugar confectionery
1704 Sugar confectionery (including white chocolate), not containing cocoa.
170490 Other
1806 Chocolate and other food preparations containing cocoa.
180631 Filled
180632 Not filled
180690 Other
237 Macaroni, noodles, couscous & similar farinaceous products
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared.
190220 Stuffed pasta, whether or not cooked or otherwise prepared
190230 Other pasta
239 Food products n.e.c.
0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion.
090121 Not decaffeinated
090122 Decaffeinated
1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of
190190 Other
1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.
190590 Other
2104 Soups and broths and preparations therefor; homogenised composite food preparations.
210410 Soups and broths and preparations therefor
2106 Food preparations not elsewhere specified or included.
210610 Protein concentrates and textured protein substances
210690 Other
241 Ethyl alcohol; spirits, liqueurs & spirits
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol.; spirits, liqueurs and other spirituous beverages.
220830 Whiskies
220840 Rum and other spirits obtained by distilling fermented sugarcane products
220850 Gin and Geneva
220860 Vodka
220870 Liqueurs and cordials
242 Wines
2204 Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09.
220410 Sparkling wine
220421 In containers holding 2 l or less
220429 Other
243 Malt liquors & malt
2203 Beer made from malt.
220300 Beer made from malt.
244 Soft drinks; bottled mineral waters
2201 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow.
220110 Mineral waters and aerated waters
2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 20.09.
220210 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured
220290 Other
250 Tobacco products
2401 Unmanufactured tobacco; tobacco refuse.
240120 Tobacco, partly or wholly stemmed/stripped
2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
240210 Cigars, cheroots and cigarillos, containing tobacco
240220 Cigarettes containing tobacco
2403 Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences.
240319 Other

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