ANNOUNCEMENT 09 Jul 2014

In July 2014, the German government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Germany under the European Agricultural Guarantee Fund (EAGF) 2014-2020 (see related state act). 
 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Federal Gazette, Bundesgesetzblatt Nr. 29, 9 July 2014 (BGBl. I S. 897), Law on the implementation of direct payments to owners of agricultural holdings within the framework of support schemes of the common agricultural policy (Gesetz zur Durchführung der Direktzahlungen an Inhaber landwirtschaftlicher Betriebe im Rahmen von Stützungsregelungen der Gemeinsamen Agrarpolitik, Direktzahlungen-Durchführungsgesetz - DirektZahlDurchfG): https://www.bgbl.de/xaver/bgbl/start.xav?start=%2F%2F*%5B%40attr_id%3D%27bgbl114s1690.pdf%27%5D#__bgbl__%2F%2F*%5B%40attr_id%3D%27bgbl114s0897.pdf%27%5D__1624459600663

Federal Gazette, Bundesgesetzblatt Nr. 51, 13 November 2014 (BGBl. I S. 1690), Implementing ordinance on direct payments to owners of agricultural holdings within the framework of support schemes of the Common Agricultural Policy (Verordnung zur Durchführung der Direktzahlungen an Inhaber landwirtschaftlicher Betriebe im Rahmen von Stützungsregelungen der Gemeinsamen Agrarpolitik, Direktzahlungen-Durchführungsverordnung - DirektZahlDurchfV): https://www.bgbl.de/xaver/bgbl/start.xav?start=%2F%2F*%5B%40attr_id%3D%27bgbl114s1690.pdf%27%5D#__bgbl__%2F%2F*%5B%40attr_id%3D%27bgbl114s1690.pdf%27%5D__1624459173090

EUR-Lex, Official Journal of the European Union, 20 December 2013, "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": https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R1307&from=EN

Inception date: 10 Jul 2014 | Removal date: 31 Dec 2020

Financial grant

On 10 July 2014, the German government published a law 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 German payments has a total value of EUR 25.4 billion (approx. USD 34.5 billion) established by Regulation (EU) No 1307/2013 of 2 December 2013, see related state act. On 3 November 2014, an additional implementing ordinance was adopted that executes the direct payments and the law's provisions. 

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 specified by the Member States. In the case of Germany, the implementing ordinance further defines the eligibility criteria and requirements to be met by national applicants. Germany has indicated that enterprises or individuals carrying out mining activities are excluded from the scheme. Additionally, farmers with less than one hectare at disposal and whose agriculture activities are not their core business are also not eligible. 

The regional authorities of the sixteen German states (Länder) are in charge of reviewing if farmers meet the eligibility criteria and manage the applications and the direct payments. In addition, the Federal Office for Agriculture and Food (Bundesanstalt für Landwirtschaft und Ernährung, BLE in German) under the Federal Ministry of Agriculture and Food will publish an annual list of all beneficiaries. 

The measure entered into force on 11 July 2014 and shall be applicable during the 2015-2020 period. Previous to that, Germany was financing its income support payments primarily from the 2007-2013 budget of the EAGF, which was established under a different subset of rules. 

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. 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).

AFFECTED PRODUCTS

 
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