ANNOUNCEMENT 09 Sep 2015

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

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

MEMORIAL Journal Officiel du Grand-Duché de Luxembourg. A-N° 175. 9 septembre 2015. Available at: http://extwprlegs1.fao.org/docs/pdf/lux149475.pdf

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

Inception date: 01 May 2015 | Removal date: 31 Dec 2022

Financial grant

On 9 September 2015, the Luxembourgian government announced the ‘Règlement grand-ducal du 30 juillet 2015 portant application, au Grand-Duché de Luxembourg, des règles relatives aux paiements directs en faveur des agriculteurs au titre des régimes de soutien relevant de la politique agricole commune’, 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 Luxembourgian payments was set out in Regulation (EU) No 1307/2013 at EUR 168 million (approx. USD 187.6 million). 

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 specific by member states. In the case of Luxembourg, the mentioned regulation establishes the national eligibility criteria and requirements to be met by applicants, including by referring to a set of provisions included in other regulations and standards. The requirements relate to good agricultural practice and good environmental conditions and must be met by beneficiaries of the scheme.

The payments will be managed by the Luxembourgian Rural Economy Department (SER), that operates under the authority of the Government whose remit includes the Department of Agriculture and Viticulture.

The measure entered into force on 1 May 2015 and shall be applicable until the end of 2020. Prior to the measure, Luxembourg was financing its income support payments primarily from the 2007-2013 budget of the EAGF which was established under a different subset of rules. In order to grant income support payments to Luxembourgian farmers using the budget from the 2015-2020 budget, Luxembourg needed to establish the national rules for the 2014-2020 CAP framework. 

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).

Update

On 28 December 2020, the European Commission adopted Regulation (EU) 2020/2220 setting out the 2021-2022 transitional budgets for the Luxembourgian income support payments provided under the European Agricultural Guarantee Fund (EAGF). The additional budget was set at EUR 65.5 million (approx. USD 80 million), increasing the overall budget for the 2015-2022 period from EUR 168 million (approx. USD 187.6 million) to EUR 233.5 million (approx. USD 267.6 million).