ANNOUNCEMENT 16 Mar 2015

In March 2015, the Czech government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Czechia under the European Agricultural Guarantee Fund (EAGF) 2014-2020 (see related state act).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Zakony pro lidi, Government Regulation No. 50/2015 of 16 March 2015, Government decree laying down certain conditions for granting direct payments to farmers and amending certain related government decrees: https://www.zakonyprolidi.cz/print/cs/2015-50/zneni-20210501.htm?sil=1

Inception date: 01 Apr 2015 | Removal date: 31 Dec 2020

Financial grant

On 16 March 2015, the Czech government adopted Government Regulation No. 50/2015, 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 Czech payments has a total value of EUR 4.367 billion (approx. USD 4.702 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 Czechia, Government Regulation No. 50/2015 establishes eligibility criteria and requirements to be met by national applicants. Beneficiaries must have a minimum of 1 hectare of agricultural land area registered in the land use register as agricultural land. 

The State Agricultural Intervention Fund (SZIF in Czech) is the accredited payment agency, coordinating and managing the direct payments system. 

The measure entered into force on 1 April 2015 and shall be applicable during the 2015-2020 period. Previous to that, Czechia 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 first is primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).