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Agriculture: Brussels increases CAP direct payments and EAFRD contributions

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13 September 2024

CAP Payments - Photo credit: Foto di RitaE da PixabayStarting from October 16, Member States will be able to grant advances of up to 70% on direct payments under the Common Agricultural Policy and up to 85% on contributions related to headage and area-based interventions under the rural development policy, always within the framework of the CAP.

The derogation on CAP advances for 2024 was authorized by the European Commission with Implementing Regulations EU 2434/2024 and 2445/2024, published in the Official Journal of the European Union on September 12, coming into force on the third day thereafter, and applies to both direct payments and contributions related to headage and area-based interventions of the 2023-2027 CAP as well as contributions based on animals and areas from previous years.

In line with similar initiatives adopted in recent years, the goal is to support EU farmers facing liquidity problems, particularly due to extreme weather events that have reduced yields in recent years, rising interest rates, and the prices of production inputs and agricultural commodities.

Increased CAP Advances from October 16

In particular, Implementing Regulation 2434-2024 provides for a derogation, for the year 2024, from Article 44, paragraph 2, second subparagraph, of Regulation EU 2021/2116 and authorizes the increase in the level of advances:

  • up to 70% for interventions in the form of direct payments, instead of up to 50% of the amounts due,
  • up to 85% for support granted under rural development interventions based on areas and animals, instead of up to 75% of the amounts due.

The second measure, namely Implementing Regulation EU 2445-2024, provides for a further derogation with reference to area and headage measures from previous programming periods, allowing Member States to pay, for 2024, up to 85% of the planned support.

The regulations are binding in all their elements and directly applicable, after coming into force, in each of the Member States. Paying agencies will be able to disburse the increased advances starting from next October 16, instead of from December 1 of the application year.

Implementing Regulation (EU) 2024/2434

Implementing Regulation (EU) 2024/2445

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