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DRAFT 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

AGRI-PR-646753

Committee on Agriculture and Rural Development · Rapporteur: Elsi Katainen

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The rapporteur's draft report proposes Parliament's position on the Commission proposal for a transitional regulation keeping the current CAP rules in force for 2021, with an option to extend to 2022 if the new CAP and the 2021-2027 budget are not published by 30 September 2020. It lets member states extend their rural development programmes through the transitional period, increase national co-financing, widen agri-environment and climate measures, and raise the technical assistance limit from 4% to up to 6%. It continues aid schemes for olive oil and table olives, fruit and vegetables, wine and apiculture, and keeps transitional national aid and Finland's national aid. It keeps the crisis reserve at EUR 400 million per transitional year, allows transfers between direct payments and rural development, and continues the single area payment scheme and internal convergence. It replaces the budget figures in the proposal with placeholders, arguing that amounts should follow the agreed 2021-2027 budget or extended 2020 ceilings, and rejects cuts to the agricultural budget.

Committee position. The rapporteur proposes to amend the Commission proposal to keep current CAP rules for 2021 with an option to extend to 2022, allow member states to extend rural development programmes with higher co-financing and technical assistance, continue existing aid schemes, and replace budget figures with placeholders pending the 2021-2027 budget.

Key points

  1. Defines the transitional period as 1 January 2021 to 31 December 2021, extended to 31 December 2022 if the 2021-2027 budget regulation and the CAP Strategic Plans regulation are not adopted and published in the Official Journal by 30 September 2020.
  2. Lets member states at risk of running out of funds extend their rural development programmes through the transitional period, and allows them to offset lower EAFRD allocations for the next budget period with higher national co-financing.
  3. Allows member states to widen the scope of their agri-environment and climate measures under Article 59(6) of Regulation (EU) No 1305/2013 during the transitional period.
  4. Requires member states to notify extension decisions within 10 days of entry into force; the Commission must justify a refusal within four weeks and may give recommendations, and the member state may reply within four weeks.
  5. Allows member states to raise the technical assistance limit from 4% to up to 6% during the transitional period, compensated by a lower percentage in 2022-2027 or 2023-2027.
  6. Extends olive oil and table olives work programmes to the end of the transitional period, with modified programmes notified by 31 December 2020 or, if extended, 31 December 2021.
  7. Lets fruit and vegetable producer organisations with operational programmes running beyond the transitional period choose to modify or replace them, or let them run unchanged until they end.
  8. Keeps wine sector support programmes ending on 15 October 2023 and apiculture programmes ending on 31 July 2022, or 1 August 2023 if the transitional period is extended.
  9. Sets the crisis reserve at EUR 400 million (at 2011 prices) for each year of the transitional period and grants no pre-financing for allocations during that period.
  10. Allows member states to transfer up to 15%, or up to 25% for Bulgaria, Estonia, Spain, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Finland and Sweden, between direct payments and rural development for financial year 2023 if the transitional period is extended.
  11. Continues the single area payment scheme and internal convergence for the transitional period, and lets member states granting transitional national aid in 2020 continue it until the end of the transitional period.
  12. Replaces the budget figures in the proposal with placeholders, stating that amounts should follow the agreed 2021-2027 budget or extended 2020 ceilings, and rejects cuts to the agricultural budget.

Who is affected

  • Farmers and other beneficiaries: continued and uninterrupted EAFRD and EAGF support under the existing rules during the transitional period.
  • Member states: may extend rural development programmes, raise co-financing and technical assistance, and must notify decisions to the Commission.
  • Producer organisations in the olive oil, fruit and vegetables, wine and apiculture sectors: their aid schemes continue, with options to modify or replace programmes.
  • National administrations and paying agencies: must ensure payments to final beneficiaries without delays during the transitional period.
  • Finland: may continue national aids granted in 2020 to producers during the transitional period, subject to Commission authorisation.

Figures and deadlines

  • EUR 150 000: threshold above which direct payments to a farmer are reduced, for which member states must notify decisions for 2021 and, if applicable, 2022.
  • EUR 11 258 707 816: maximum Union support for rural development from 1 January 2021 to 31 December 2021, and if extended, 1 January 2022 to 31 December 2022.
  • EUR 400 million (at 2011 prices): amount of the crisis reserve for each year of the transitional period.
  • 30 September 2020: deadline for adoption and publication of the 2021-2027 budget regulation and the CAP Strategic Plans regulation, after which the transitional period is extended to 31 December 2022.
  • 1 August 2020: deadline for member states to notify financial allocations by scheme for calendar year 2021, and 1 August 2021 for calendar year 2022 if extended.
  • 15 October 2023: end date of wine sector support programmes.
  • 31 July 2022: end date of apiculture national programmes, or 1 August 2023 if the transitional period is extended.
  • EUR 383 255 million in 2018 prices (EUR 431 946 million in current prices): Parliament's position for maintaining CAP financing at the 2014-2020 level.

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