New reports highlight CAP's role in strengthening rural areas

Today, the Commission has published a new study examining the contribution of EU funding to the development of rural areas and the evaluation of the impact of LEADER in rural areas. Both highlight the significant impact of the common agricultural policy (CAP), in addressing the needs of rural areas and tackling the actions set in Long-term vision for rural areas. The study also assesses the role of other EU funds targeting rural areas (2014-2020): the European Regional and Development Fund/Cohesion Fund, the European Social Fund, the European Maritime and Fisheries Fund (EMFF), as well as national funds. The study shows that having a comprehensive rural strategy in place helps EU countries to efficiently direct CAP funding to rural areas and meet the needs of rural communities.

The Commission is committed to supporting all rural areas and remote regions. In most EU countries, support for remote and constrained rural regions predominantly comes from the CAP.

Today’s study shows that between 2014-2022, the CAP has allocated €8.6 billion to support non-farming related activities in rural areas. This demonstrates the CAP’s role in not only supporting farmers and agriculture, but also strengthening other businesses and communities in rural areas [1]. CAP support can for example invest in the construction of new public roads and in the implementation of renewable energy solutions, or the conversion of abandoned houses into community centres. Equally, the CAP has helped to set up spaces offering digital services to rural communities, providing opportunities to hold training sessions, sports events, performances, or local school gatherings. Local rural authorities also receive EU funding to digitalise their operations,  improve access to services, promote environmental awareness, and support rural start-ups in developing innovative technologies. Each successful project improves rural living conditions and access to services, directly contributing to the creation of vibrant local communities.

The most effective support is based on grassroots approaches and builds on small-scale projects. 

The study recognise that the needs of rural areas are becoming more complex and its conclusions recommend adopting holistic policy approaches to even better target CAP and other EU funds in rural areas in the future.

In addition, the evaluation demonstrated the added value of the LEADER approach which delivers small but impactful projects and has contributed to creating almost 60 000 jobs and more than 2700 local action groups (LAGs) covering a rural population of 170 million people. It also specifically targets areas that are economically disadvantaged, peripheral or remote, or which host vulnerable communities. 

Background

EU's rural areas cover 83% of the EU territory. Rural development is the 'second pillar' of the common agricultural policy (CAP), reinforcing the 'first pillar' of income support and market measures by strengthening the social, environmental, and economic sustainability of rural areas. In the programming period 2014-2020, the CAP has co-financed rural development programmes implemented at regional or EU country levels throughout the EU. In the CAP 2023-27, EU countries have created various interventions, including agriculture-related and non-area-based initiatives like investments, cooperation, and knowledge exchange, in their CAP Strategic Plans to address their diverse needs. In 2021, the European Commission presented its Long-term vision for the EU's rural areas, identifying the challenges and concerns that they are facing as well as the many opportunities available to them. Detailed statistics and analyses on the EU rural areas, covering economic, social, and environmental aspects, are available on the Rural Observatory. Funding opportunities can be found through the Rural toolkit.

[1] Total EU paid in 2021.