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REPORT (COM(2019)0581 – C90162/2019 – 2019/0254(COD))

On the proposal for a regulation of the European Parliament and of the Council laying down certain transitional provisions for the support by the European Agricultural Fund for Rural Development (EAFRD) and by the European Agricultural Guarantee Fund (EAGF) in the year 2021 and amending Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 as regards resources and their distribution in respect of the year 2021 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards their resources and application in the year 2021

A-9-2020-0101

Committee on Agriculture and Rural Development · Rapporteur: Elsi Katainen

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Parliament's amended version of the Commission proposal for a regulation on transitional CAP support in 2021 keeps the current rules and payments running for one year, extendable to 31 December 2022 if the MFF and CAP Strategic Plan rules are not published by 30 October 2020. It lets Member States extend rural development programmes, keep the crisis reserve, continue direct payment schemes, transitional national aid and sectoral aid schemes, and increase technical assistance. It replaces the Commission's proposed budget figures with placeholders, to be calculated once the 2021-2027 MFF figures are agreed or on extended 2020 ceilings. It adds rules on outermost regions, national fiscal measures for farmers, olive oil marketing rules and wine planting authorisations.

Committee position. The Committee on Agriculture and Rural Development proposes to amend the Commission proposal to keep current CAP rules and payments running, allow a possible one-year extension of the transitional period, reject reductions in agricultural funding, and add measures on outermost regions, risk management, national fiscal measures and sectoral aid schemes.

Key points

  1. Defines the transitional period as 1 January 2021 to 31 December 2021, extended to 31 December 2022 if the MFF and CAP Strategic Plan regulations are not published by 30 October 2020.
  2. Lets Member States at risk of running out of rural development funds extend their programmes through the transitional period and compensate reduced EU allocations with higher national co-financing.
  3. Requires Member States to notify extension decisions within two weeks of entry into force; the Commission must reply within four weeks with reasons for any refusal and may suggest improvements.
  4. Allows Member States not extending programmes to transfer unused 2021 or 2022 EAFRD allocations to later years of the programming period.
  5. Keeps the crisis reserve for 2021 and, where applicable, 2022, with EUR 400 million for 2021 additional to the EAGF and EAFRD budgets.
  6. Extends the olive oil and table olives work programmes to the end of the transitional period, lets fruit and vegetable producer organisations keep operational programmes until they end, and sets wine support until 15 October 2023 and apiculture until 31 July 2022.
  7. Limits new agri-environment-climate, organic farming and animal welfare commitments to five years, with existing commitments extendable by one year and beneficiaries able to opt out if support falls.
  8. Lowers the loss threshold for risk management compensation from 30% to 20% of average annual production or income.
  9. Lets Member States raise the technical assistance limit from 4% to 6% during the transitional period, compensated by lower technical assistance in 2022-2027.
  10. Allows Member States to keep transitional national aid until the end of the transitional period and to continue internal convergence towards a national or regional average.
  11. Exempts national fiscal measures that let farmers spread income tax over several years or place money in a dedicated savings account from EU state aid rules.
  12. Lets outermost-region Member States make interbranch agreements binding on non-members and have them pay contributions, and reinstates POSEI and smaller Aegean islands allocations at current levels.

Who is affected

  • Farmers and other CAP beneficiaries: payments continue without interruption under the current rules during the transitional period.
  • Member States: may extend rural development programmes, transfer funds between pillars, and must notify the Commission of decisions.
  • Outermost regions: interbranch agreements can be extended to non-members, and POSEI and Aegean islands allocations are kept at current levels.
  • Fruit and vegetable, wine, apiculture and olive oil sectors: their aid schemes and operational programmes continue under set end dates.

Figures and deadlines

  • EUR 383 255 million in 2018 prices (EUR 431 946 million in current prices): the agricultural reserve amount Parliament wants budgeted.
  • 30 October 2020: deadline for publishing the MFF and CAP Strategic Plan regulations before the transitional period is extended.
  • EUR 400 million (at 2011 prices): the crisis reserve amount for 2021.
  • 15 October 2023: end date for wine sector support programmes.
  • 31 July 2022: end date for apiculture national programmes.
  • 20%: the loss threshold for risk management compensation, replacing 30%.
  • 4% to 6%: the technical assistance limit Member States may raise during the transitional period.
  • 15% or 25%: the share of national ceilings Member States may transfer between direct payments and rural development.

Legal basis: Article 294(2), Article 43(2) and Article 349 of the Treaty on the Functioning of the European Union.