ANNOUNCEMENT 20 Dec 2013

In December 2013, the EU established the 2014-2020 budget for the European Agricultural Guarantee Fund (EAGF), the first pillar of the Common Agricultural Policy (CAP) framework.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

EUR-Lex. Official Gazette. "Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020". 20/12/2013. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1311

EUR-Lex. Official Gazette. "Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009". 20/12/2013. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1307&qid=1619526760849

EUR-Lex. Official Gazette. "Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007". 20/12/2013. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32013R1308

European Commission. Common Agricultural Policy. Available at: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy_en

Updates

European Commission. EAGF financial reports. Available at: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/cap-funds/eagf-reports_en

Inception date: No inception date

Financial grant

On 20 December 2013, the EU adopted Regulation (EU) No 1311/2013 which establishes the budget of the income support payments financed under the European Agricultural Guarantee Fund (EAGF) for the 2015-2020 period at EUR 211.8 billion (approx. USD 289.6 billion). 

In addition, Regulation (EU) 1307/2013 establishes the operating rules for the direct income support payments, which take the form of financial grants. Beneficiaries are active farmers that meet minimum requirements. As the implementers of the payments are Member States, they can establish further criteria for receiving support in national legislation (see related state acts). Each Member State is obliged to respect national ceilings comprising the maximum values of all the payment entitlements. These ceilings are specified in Annex II of Regulation (EU) No 1307/2013. 

Under Common Agricultural Policy (CAP) rules, Member States have to provide compulsory payment schemes to farmers. These are the basic payment scheme (BPS), and the single area payment scheme (SAPS) - which is a simplified transitional scheme temporarily used in the new Member States -, payments related to climate change (known as green payments), and payments to young farmers. In addition, Member States can choose to provide extra voluntary support directed to specific beneficiaries. Some examples include crop-specific schemes, coupled support, and redistributive payments.

EU's CAP framework

The CAP framework is the EU-wide agricultural policy born in 1962 that 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).

AFFECTED PRODUCTS

 
N/A
Inception date: 01 Jan 2014 | Removal date: 31 Dec 2020

Financial grant

On 20 December 2013, the EU adopted Regulation (EU) No 1311/2013 which establishes the budget of the market measures financed by the European Agricultural Guarantee Fund (EAGF) for the 2014-2020 period at EUR 66 billion (approx. USD 90.3 billion).

In addition, Regulation (EU) 1308/2013 establishes the operating rules for the market support measures to be provided, which can take different forms (see related state acts). Beneficiaries are farmers of products listed in Article 1 of Regulation (EU) 1308/2013. Annex I further specify the HS codes.

Under Common Agricultural Policy (CAP) rules, the European Commission and Member States can coordinate market measures to stabilise agricultural markets, prevent crises from escalating, and boosting demand. According to Regulation (EU) 1308/2013, market measures can be divided into the following two groups:

  • Those affecting the internal market: including market public storage aid and aid for private storage to certain agricultural products; aid in the olive oil and table olives sector; aid in the fruit and vegetable sector; support programmes in the wine sector (including distillation schemes); aid in the apiculture sector; and aid in the hops sector.
  • Those affecting trade with third countries: including import duties, import tariff quotas, trade defence measures, and export refunds. 

EU's CAP framework

The CAP framework is the EU-wide agricultural policy born in 1962 that 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).

 
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