ANNOUNCEMENT 28 Dec 2020

In December 2020, the EU and Italy 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 Italian payments income support payments financed under the European Agricultural Guarantee Fund (EAGF). The 2021-2022 budget was set at EUR 7.3 billion (approx. USD 8.9 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 6.3 billion (approx. USD 7.7 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

 
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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 Italian 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 2.999 billion (approx. USD 3.7 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 Italy'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. 

 
010129 010229 010511 010512 010619 010649 010690 020110 020120 020130 020220 020230 020311 020312 020319 020321 020322 020329 020410 020421 020422 020442 020450 020500 020610 020649 020711 020712 020713 020714 020725 020726 020727 020810 020890 020910 021011 021012 021019 021020 021099 030199 030211 030214 030219 030224 030231 030232 030235 030242 030243 030254 030259 030284 030285 030289 030342 030353 030389 030433 030441 030442 030449 030459 030481 030483 030487 030489 030520 030539 030541 030551 030562 030563 030615 030616 030617 030619 030622 030629 030711 030721 030729 030731 030741 030749 030751 030759 030771 030791 030799 040110 040120 040140 040150 040210 040221 040229 040291 040299 040310 040390 040410 040490 040510 040590 040610 040620 040630 040640 040690 040711 040719 040721 040811 040819 040891 040899 040900 041000 050100 050400 050510 050690 050800 051000 051110 051191 051199 060110 060120 060210 060220 060230 060240 060290 060311 060312 060314 060319 060390 060420 060490 070110 070190 070200 070310 070320 070390 070410 070420 070490 070511 070519 070521 070529 070690 070700 070810 070820 070890 070920 070930 070940 070951 070959 070960 070991 070992 070993 070999 071010 071021 071022 071029 071030 071080 071090 071120 071190 071239 071290 071310 071320 071333 071339 071340 071350 071420 080122 080132 080211 080212 080221 080222 080231 080232 080241 080251 080252 080262 080290 080310 080390 080410 080420 080430 080440 080450 080510 080520 080540 080550 080590 080610 080620 080711 080719 080810 080830 080910 080921 080929 080930 080940 081010 081020 081030 081040 081050 081070 081090 081110 081120 081190 081210 081310 081320 081340 081350 090111 090112 090121 090122 090210 090230 090240 090411 090412 090422 091011 091030 091091 091099 100111 100119 100191 100199 100390 100490 100510 100590 100610 100620 100630 100640 100710 100850 110100 110220 110290 110313 110319 110419 110423 110429 110430 110510 110520 110610 110630 110710 110811 110812 110819 110900 120110 120190 120400 120510 120600 120740 120799 120810 120890 120910 120921 120922 120923 120925 120929 120930 120991 120999 121190 121299 121300 121490 130120 130190 130212 130213 130219 130220 130232 130239 140490 150110 150190 150210 150290 150420 150500 150600 150790 150890 150910 150990 151000 151190 151211 151219 151319 151411 151419 151519 151521 151529 151590 151620 151710 151790 151800 152000 152190 160100 160231 160232 160239 160241 160242 160249 160250 160290 160300 160411 160413 160414 160415 160416 160419 160420 160432 160521 160529 160553 160554 160555 160556 160559 160569 170112 170114 170199 170211 170219 170230 170240 170260 170290 170410 170490 180310 180400 180500 180610 180620 180631 180632 180690 190110 190120 190190 190219 190220 190230 190240 190410 190420 190490 190510 190520 190531 190532 190540 190590 200110 200190 200290 200310 200410 200490 200510 200520 200540 200551 200559 200570 200580 200591 200599 200600 200710 200799 200811 200819 200820 200830 200840 200860 200870 200880 200893 200897 200899 200911 200912 200919 200921 200929 200931 200939 200941 200949 200961 200969 200971 200979 200989 200990 210111 210112 210120 210130 210210 210220 210310 210320 210330 210390 210410 210420 210500 210610 210690 220110 220190 220210 220290 220300 220410 220421 220429 220430 220510 220600 220710 220720 220820 220830 220840 220850 220860 220870 220890 220900 230110 230120 230230 230240 230310 230320 230330 230400 230630 230641 230690 230800 230910 230990 240110 240120 240210 240399
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