29th June 2013

A new concept of the Common Agricultural Policy

The European Parliament, the EU Council of Ministers and the European Commission have reached an agreement on reforming the common agricultural policy (CAP) post 2013. EU representatives agreed on making direct payments fairer and greener, strengthening the position of farmers and making the CAP more transparent and efficient.

Direct payments still play the most important role in distribution of funding for the EU farmers. An end will be put to “historical references”, the distribution of the CAP budget will ensure that no Member State receives less than 75% of the Community average by 2019. Moreover, only farmers currently active will benefit from income support schemes.

Further improvement will be made in the market orientation of agricultural sector. Professional and inter-professional organisations will be promoted to increase efficiency by negotiating sales agreements. Sugar quotas will be abolished by 2017 and new rules will be applied also on the wine sector.

A greener CAP is a common denominator of all the adopted measures. Between 2014 and 2020, over €100 billion will be invested to help farmers meet the challenges needed to combat climate change and promote soil and water quality, biodiversity and sustainability.

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Members of the American Chamber of Commerce in the Czech Republic