CAP: Direct payments post 2013

What are the changes to direct payments?

Direct payments (i.e. basic income support granted to farmers to compensate them for the public goods and services they provide): There will be a gradual redistribution of support within member states or regions,  to reduce the biggest differences in the levels of support received by farmers across the EU.

Trimming of direct payments: Direct payments to large farms will be reduced by at least 5% for amounts over €150 000 a year. The savings made will remain in the member state for use in rural development.

Green farming

Green farming practices under the CAP reform include:

• maintaining a minimum area of permanent grassland
• growing at least three different crops on arable land
• maintaining a minimum area covered with landscape features such as hedges and ponds, or strips of fallow land, forest areas or areas covered with crops that are help soil and water quality

Existing  imbalances in payment levels  between member states will be partially levelled out: Member states whose current average direct payment level per hectare is below 90% of the EU average will see their level gradually increased. By 2019, the minimum level across the EU should be approximately €196 per hectare. This convergence will be financed by member states whose direct payment level is above the EU average.

Direct payments to  new farmers and young farmers  (under 40) will be topped up for the first five years of activity. This will be in addition to other support measures available under rural development programmes.

In the future, farmers who only receive a small amount in direct payments will be able to benefit from a simplified 'small farmers scheme'. This will cut red tape for both small farmers and national authorities.

Greening:   30% of direct payments will only be granted to farmers if they observe green farming practices that benefit the climate and the environment.  Organic production  will automatically be considered as fulfilling the greening conditions. Failure to respect the greening conditions will result in penalties.

In future only 'active farmers'  will receive funding. The new rules clarify that big landowners without any real farming activity and companies with large areas of grassland (such as airports) will not be able to claim farm payments.

Increased flexibility  for member states in the use of their national envelopes: All member states will be able to move up to 15% of their funds between the two CAP pillars. Member states whose direct payment envelopes are below the EU average may even transfer up to 25% of their second pillar funds to the first pillar.