ANNOUNCED AS TEMPORARYYes
On 28 December 2020, the European Commission adopted Regulation (EU) 2020/2220 setting out the transitional budgets for the Swedish payments income support payments financed under the European Agricultural Guarantee Fund (EAGF). The 2021-2022 budget was set at EUR 1.4 billion (approx. USD 1.7 billion). This represents an increase in the biannual intensity of the scheme when compared to the previous biannual intensity during the 2014-2020 period of EUR 1.2 million (approx. USD 1.4 billion).
Income support measures to farmers take the form of financial grants. The operating rules for the direct income support payments will remain those outlined for the 2014-2020 period in Regulation (EU) 1307/2013 and in corresponding national legislation. For more information on the granting rules, please see the related state act.
Notably, Regulation (EU) 2020/2220 set the budget for the agricultural development support under the European Agricultural Fund for Rural Development (EAFRD). For more details, see related intervention.
CAP's transitional rules
The CAP framework is the EU-wide agricultural policy established in 1962 and is subject to reforms and new rules every six years. 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).
In this context, in June 2018, the Commission presented proposals on the CAP rules for the period 2021-2027. These proposals, however, were not approved by the Parliament, resulting in the necessity to extend the 2014-2020 rules with a transitional regulation during the years 2021 and 2022.
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