Today, the European Commission approved the CAP strategic plans for Austria and Luxembourg. This represents the second approval package of CAP Strategic Plans following the approval on 31 August of the Plans for Denmark, Finland, France, Ireland, Poland, Portugal, and Spain. The new Common Agricultural Policy (CAP), set to start on 1 January 2023, is designed to shape the transition to a sustainable, resilient and modern European agricultural sector. Under the reformed policy, funding will be more fairly distributed to small and medium-sized family farms, as well as to young farmers. Moreover, farmers will be supported to take up new innovations, from precision farming to agro-ecological production methods. By supporting concrete actions in these and other areas, the new CAP can be the cornerstone for food security and farming communities in the European Union.
The new CAP incorporates a more efficient and effective way of working. EU countries will implement national CAP Strategic Plans, combining funding for income support, rural development and market measures. In designing its CAP Strategic Plan, each Member State chose from a wide range of interventions at EU level, tailoring and targeting them to address their specific needs and local conditions. The Commission has been assessing whether each Plan is aimed towards the ten key CAP objectives, which touch upon shared environmental, social and economic challenges. Hence, the Plans will be in line with EU legislation and should contribute to the EU's climate and environmental goals, including on animal welfare, as set out in the Commission's Farm to Fork and Biodiversity strategies.
The CAP will benefit from €270 billion in funding for the 2023-2027 period. The two Plans approved today represent a budget of over € 6.2 billion, including € 2.1 billion dedicated to environmental and climate objectives and eco-schemes. Austria’s eco-schemes focus for example on soil and water protection, as well as on the improvement of animal welfare, while Luxembourg will support non-productive surfaces and strips and will give grants to farmers who limit their use of pesticides.
Both countries will also strongly support organic farming practices. CAP funding in Luxembourg will contribute to increasing the area under organic farming to 20% by 2025. Austria already has one of the highest shares of organic production in the EU. With the help of the CAP, this share will be further increased to 30% of the agricultural land.
A key objective of both countries in their CAP Strategic Plans isafairer distribution of income support. Austria will focus on more effective and efficient targeting of direct payments, whereas Luxembourg will focus on ensuring a fairer income to agricultural producers. Austria will pay special attention to small and mountainous farms and will use more than 60% of the rural development budget for environmental objectives. With the support of the CAP, more than 11 000 jobs will be created and over 1 800 rural businesses will be supported in Austria. Luxembourg will focus on strengthening the competitiveness of the agricultural sector and on generational renewal. Specific support will be given to young farmers for their establishment in the form offinancial aid of up to €100 000.
More information on each Plan as well as the breakdown of their CAP budget is available in the “at a glance” documents.
The European Commission presented its proposal for the Common Agricultural Policy (CAP) reform in 2018, introducing a new way of working to modernise the EU's policy on agriculture. Following extensive negotiations between the European Parliament, the Council of the EU and the European Commission, an agreement was reached and the new CAP was formally adopted on 2 December 2021.
The deadline set by co-legislators for Member States to submit their CAP Strategic Plan was 1 January 2022. After receiving the Plans, the Commission sent observation letters to all of the Member States by 25 May 2022. They were published on the Europa website together with the reactions of all Member States, in line with the transparency principle. A structured dialogue between the Commission services and national authorities resumed thereafter to solve remaining issues and finalise the revised CAP Plans.
Austria and Luxembourg submitted their first proposals for a CAP Strategic Plan on 30 December 2021 and 21 January 2022 respectively, after consultation with stakeholders. They then sent their reviewed proposals, addressing the Commission’s observations, on 10 August 2022 for Austria and 30 August for Luxembourg.
To be approved, each Plan must be complete and compatible with the legislation, and ambitious enough to deliver on the CAP objectives and EU environmental and climate commitments.
For more information
- Publication date
- 13 September 2022
- Directorate-General for Agriculture and Rural Development