ANNOUNCEMENT 28 Dec 2020

In December 2020, the EU and Spain established the transitional budgets for the agricultural support given under the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) during the period 2021-2022.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

EUR-Lex. EU Official Gazette. “Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020 laying down certain transitional provisions for support from the European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation (EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 2021 and 2022”. 28/12/2020. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R2220&qid=1610640952786

Inception date: 01 Jan 2021 | Removal date: 31 Dec 2022

Financial grant

On 28 December 2020, the European Commission adopted Regulation (EU) 2020/2220 setting out the transitional budgets for the Spanish payments income support payments financed under the European Agricultural Guarantee Fund (EAGF). The 2021-2022 budget was set at EUR 9.6 billion (approx. USD 11.7 billion). This represents an increase in the biannual intensity of the scheme when compared to the previous biannual intensity during the 2014-2020 period of EUR 8.2 billion (approx. USD 10 billion).

Income support measures to farmers take the form of financial grants. The operating rules for the direct income support payments will remain those outlined for the 2014-2020 period in Regulation (EU) 1307/2013 and in corresponding national legislation. For more information on the granting rules, please see the related state act. 

Notably, Regulation (EU) 2020/2220 set the budget for the agricultural development support under the European Agricultural Fund for Rural Development (EAFRD). For more details, see related intervention.

CAP's transitional rules
The CAP framework is the EU-wide agricultural policy established in 1962 and 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).

In this context, in June 2018, the Commission presented proposals on the CAP rules for the period 2021-2027. These proposals, however, were not approved by the Parliament, resulting in the necessity to extend the 2014-2020 rules with a transitional regulation during the years 2021 and 2022. 

AFFECTED PRODUCTS

 
010121 010129 010221 010229 010290 010392 010410 010511 010611 010619 020110 020120 020130 020220 020230 020311 020312 020319 020322 020329 020410 020421 020422 020430 020442 020450 020610 020629 020630 020649 020711 020712 020713 020714 020724 020726 020727 020745 020810 020890 020910 021011 021012 021019 021020 021099 030191 030194 030199 030211 030214 030219 030223 030224 030229 030231 030232 030235 030242 030243 030244 030245 030247 030251 030254 030259 030281 030284 030285 030289 030313 030331 030339 030341 030342 030343 030344 030353 030354 030355 030357 030363 030366 030369 030381 030384 030389 030390 030439 030441 030444 030449 030459 030471 030474 030479 030481 030483 030487 030489 030491 030495 030499 030532 030539 030541 030549 030562 030563 030611 030612 030614 030615 030616 030617 030619 030621 030622 030624 030625 030626 030627 030629 030711 030721 030729 030731 030739 030741 030749 030751 030759 030760 030771 030779 030791 030799 040110 040120 040140 040150 040210 040221 040229 040291 040299 040310 040390 040410 040490 040510 040520 040590 040610 040620 040630 040640 040690 040711 040719 040721 040729 040819 040899 040900 041000 050400 050510 051000 051110 051191 051199 060210 060220 060290 060311 060312 060319 060390 060420 060490 070110 070190 070200 070310 070320 070390 070410 070490 070511 070519 070529 070610 070690 070700 070820 070920 070959 070960 070992 070993 070999 071010 071021 071022 071029 071030 071040 071080 071090 071120 071190 071220 071290 071310 071320 071333 071340 071350 071490 080132 080211 080212 080222 080231 080232 080241 080242 080251 080252 080290 080310 080390 080410 080420 080430 080440 080450 080510 080520 080540 080550 080610 080620 080711 080719 080720 080810 080830 080929 080930 080940 081010 081020 081030 081040 081050 081090 081110 081120 081190 081310 081320 081340 081350 090111 090112 090121 090122 090210 090220 090230 090411 090412 090421 090422 091011 091020 091030 091091 091099 100111 100119 100191 100199 100390 100490 100510 100590 100620 100630 100640 100850 100860 110100 110290 110313 110412 110520 110710 110812 110900 120190 120510 120590 120600 120770 120799 120810 120890 120910 120923 120925 120929 120991 120999 121190 121229 121292 121299 121300 121490 130190 130219 130220 130231 130232 130239 140490 150290 150420 150600 150710 150790 150910 150990 151000 151110 151190 151211 151219 151319 151329 151419 151521 151590 151610 151620 151710 151790 151800 152200 160100 160210 160231 160232 160241 160249 160250 160300 160413 160414 160415 160416 160419 160420 160432 160521 160529 160540 160553 160554 160559 160569 170114 170199 170230 170260 170290 170410 170490 180100 180310 180400 180500 180610 180620 180631 180632 180690 190110 190120 190190 190211 190219 190220 190230 190240 190410 190420 190490 190520 190531 190532 190540 190590 200110 200190 200210 200290 200310 200390 200410 200490 200510 200520 200540 200551 200560 200570 200580 200599 200600 200710 200799 200811 200819 200820 200830 200840 200870 200880 200891 200897 200899 200911 200912 200919 200929 200939 200941 200950 200961 200969 200971 200979 200981 200989 200990 210111 210112 210120 210130 210210 210220 210320 210330 210390 210410 210420 210500 210610 210690 220110 220210 220290 220300 220410 220421 220429 220510 220600 220710 220820 220830 220840 220850 220860 220870 220890 220900 230110 230120 230240 230250 230310 230400 230630 230641 230649 230660 230690 230800 230910 230990 240110 240120 240210 240220
(+ 489 more)
Inception date: 01 Jan 2021 | Removal date: 31 Dec 2023

Financial grant

On 28 December 2020, the European Commission adopted Regulation (EU) 2020/2220 setting out the transitional budgets for the Spanish rural development support to national farmers under the European Agricultural Fund for Rural Development (EAFRD). The support primarily takes the form of financial grants.

The 2021-2022 budget was set at EUR 2.4 billion (approx. USD 2.9 billion). The operating and granting rules for the support will remain those outlined for the 2014-2020 period in Regulation (EU) 1305/2013 and in Spain's approved Rural Development Programmes (RDPs). No specific budgets per priority objective of the RDPs were provided. Notably, the RDPs established in 2014 is in force until 2023, however, no specific budget was allocated for the period 2021-2023. For more information on the granting rules and previous set budgets please see the related state act.

Notably, Regulation (EU) 2020/2220 also set the budget for the country's income support payments under the European Agricultural Guarantee Fund (EAGF). For details, please see the related intervention. 

CAP's transitional rules
The CAP framework is the EU-wide agricultural policy established in 1962 and 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).

In this context, in June 2018, the Commission presented proposals on the CAP rules for the period 2021-2027. These proposals, however, were not approved by the Parliament, resulting in the necessity to extend the 2014-2020 rules with a transitional regulation during the years 2021 and 2022. 

 
010121 010129 010221 010229 010290 010392 010410 010511 010611 010619 020110 020120 020130 020220 020230 020311 020312 020319 020322 020329 020410 020421 020422 020430 020442 020450 020610 020629 020630 020649 020711 020712 020713 020714 020724 020726 020727 020745 020810 020890 020910 021011 021012 021019 021020 021099 030191 030194 030199 030211 030214 030219 030223 030224 030229 030231 030232 030235 030242 030243 030244 030245 030247 030251 030254 030259 030281 030284 030285 030289 030313 030331 030339 030341 030342 030343 030344 030353 030354 030355 030357 030363 030366 030369 030381 030384 030389 030390 030439 030441 030444 030449 030459 030471 030474 030479 030481 030483 030487 030489 030491 030495 030499 030532 030539 030541 030549 030562 030563 030611 030612 030614 030615 030616 030617 030619 030621 030622 030624 030625 030626 030627 030629 030711 030721 030729 030731 030739 030741 030749 030751 030759 030760 030771 030779 030791 030799 040110 040120 040140 040150 040210 040221 040229 040291 040299 040310 040390 040410 040490 040510 040520 040590 040610 040620 040630 040640 040690 040711 040719 040721 040729 040819 040899 040900 041000 050400 050510 051000 051110 051191 051199 060210 060220 060290 060311 060312 060319 060390 060420 060490 070110 070190 070200 070310 070320 070390 070410 070490 070511 070519 070529 070610 070690 070700 070820 070920 070959 070960 070992 070993 070999 071010 071021 071022 071029 071030 071040 071080 071090 071120 071190 071220 071290 071310 071320 071333 071340 071350 071490 080132 080211 080212 080222 080231 080232 080241 080242 080251 080252 080290 080310 080390 080410 080420 080430 080440 080450 080510 080520 080540 080550 080610 080620 080711 080719 080720 080810 080830 080929 080930 080940 081010 081020 081030 081040 081050 081090 081110 081120 081190 081310 081320 081340 081350 090111 090112 090121 090122 090210 090220 090230 090411 090412 090421 090422 091011 091020 091030 091091 091099 100111 100119 100191 100199 100390 100490 100510 100590 100620 100630 100640 100850 100860 110100 110290 110313 110412 110520 110710 110812 110900 120190 120510 120590 120600 120770 120799 120810 120890 120910 120923 120925 120929 120991 120999 121190 121229 121292 121299 121300 121490 130190 130219 130220 130231 130232 130239 140490 150290 150420 150600 150710 150790 150910 150990 151000 151110 151190 151211 151219 151319 151329 151419 151521 151590 151610 151620 151710 151790 151800 152200 160100 160210 160231 160232 160241 160249 160250 160300 160413 160414 160415 160416 160419 160420 160432 160521 160529 160540 160553 160554 160559 160569 170114 170199 170230 170260 170290 170410 170490 180100 180310 180400 180500 180610 180620 180631 180632 180690 190110 190120 190190 190211 190219 190220 190230 190240 190410 190420 190490 190520 190531 190532 190540 190590 200110 200190 200210 200290 200310 200390 200410 200490 200510 200520 200540 200551 200560 200570 200580 200599 200600 200710 200799 200811 200819 200820 200830 200840 200870 200880 200891 200897 200899 200911 200912 200919 200929 200939 200941 200950 200961 200969 200971 200979 200981 200989 200990 210111 210112 210120 210130 210210 210220 210320 210330 210390 210410 210420 210500 210610 210690 220110 220210 220290 220300 220410 220421 220429 220510 220600 220710 220820 220830 220840 220850 220860 220870 220890 220900 230110 230120 230240 230250 230310 230400 230630 230641 230649 230660 230690 230800 230910 230990 240110 240120 240210 240220
(+ 489 more)