ANNOUNCEMENT 20 Nov 2014

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

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Slov-Lex, Legislative and Information Portal of the Ministry of Justice of the Slovak Republic, Government Regulation of 20 November 2014 laying down rules for the granting of aid in agriculture in relation to decoupled direct payment schemes, No 342/2014: https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2014/342/20150101.html

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: 01 Jan 2015 | Removal date: 31 Dec 2020

Financial grant

On 20 November 2014, the Slovakian government adopted Governmental Decree 342/2014 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 Slovakian payments has a total value of EUR 1.937 billion (approx. USD 2.34 billion) established by Regulation (EU) No 1307/2013 of 2 December 2013, see related state act.

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 Slovakia, Governmental Decree 342/2014 defines one hectare of agricultural land as the minimum requirement for beneficiaries to be eligible.  

The payments system will be managed by the Agricultural Paying Agency (Pôdohospodárska platobná agentúra, PPA) which is an organisation under the Ministry of Agriculture and Rural Development. PPA is in charge of reviewing if farmers meet the eligibility criteria and managing the payment transactions. 

The measure entered into force on 1 January 2015  and shall be applicable during the 2015-2020 period. Previous to that, Slovakia 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 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).