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EU CAP reform gets final approval

30 November 2021

The reformed version aims to be greener, fairer, more flexible and transparent

Last week, Members of European Parliament (MEPs) approved the new EU Farm Policy.

The aim of the new policy is to strengthen biodiversity, while at the same time adhering to European environmental and climate laws and commitments.

Under the new policy, 10% of direct payments will go to small and medium-sized farms, and at least 3% will go to young farmers. Furthermore, a permanent crisis reserve of €450 million annually will be set aside to be used when prices or markets are unstable. Under the new rules, there will also be penalties for those who breach labour rules.

The press release following approval said that during negotiations MEPs insisted on strengthening biodiversity and adhering to EU environmental and climate laws.

Under the new CAP, farmers will have to comply with climate- and environmentally-friendly practices. Member states will be obliged to ensure that at least 35% of the rural development budget and at least 25% of direct payments will be dedicated to environmental and climate measures.

The “Strategic plans regulation” was adopted with 452 votes in favour, 178 against and 57 abstentions.

"By approving the CAP reform, we guarantee planning security not only for member states, but above all for our European farmers," said Peter Jahr, rapporteur for the "Strategic plans regulation".

The “Horizontal regulation” was adopted with 485 votes in favour, 142 against and 61 abstentions.

The “Common market organisation regulation” was adopted with 487 in favour, 130 against and 71 abstentions.

“For the first time in more than 30 years, thanks to the common market organisation part of the CAP reform, the reforms approved today will mean more market regulation than deregulation," said Eric Andrieu, rapporteur for the “Common market organisation regulation".

Once approved by the Council, the new rules will be applicable from 1 January 2023.



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