1. Current budgetary and regulatory position of the CAP
Technical Assistance for Development of a Strategy for Alignment with
Common Market Organisation (CMO) Requirements
TR2014/AG/10-A1-01/001
This Project is co-financed by the European Union and the Republic of Turkey
Current budgetary and regulatory position of the CAP
Antalya, 28 February, 2018

2. Contents: Legal basis for CAP financing
CAP reform package in period
Important topics in CAP implementation, in particular RD financing and direct payments

3. Financial provisions
EU multiannual budget plan: Council Regulation No. 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years (MFF)
provides annual financial budgetary allocations per EU priority
technical adjustments made each year; must be approved by Council and Parliament
national allocation for structural funds must not be changed by budget revisions
CAP national allocations:
for Pillar I: Annex II of Regulation 1307/2013
for Pillar II: Annex II of Regulation 1305/2013

4. Overall figures for EU Budget in period 2014 – 2020 (MFF)
Outside the MFF: 58.5 BN in 2011 prices

5. Overall figures for EU Budget - CAP expenditures (MFF)

6. Basic CAP Regulations (1)
Adopted in December 2013 as CAP reform package for the period :
Rural Development Regulation: 1305/2013
Horizontal Regulation: 1306/2013
Direct Payments Regulation: 1307/2013
CMO Regulation: 1308/2013
Implementation of the CAP reform package:
CMO, rural development and horizontal regulation: since 2014
direct payments: since 2015

7. Basic CAP Regulations (2)
Scope of the CAP regulations:
Rural development Regulation: objectives and priorities of RD policy of EU, measures, rules on programming, management, monitoring and evaluation
Horizontal Regulation: rules of financing of CAP measures, management and control systems of Member States, cross- compliance, farm advisory service
Direct Payments Regulation: rules on payments granted directly to farmers
CMO Regulation: rules on market measures in agricultural sectors

8. CAP Implementation: Simplification
One of priorities of DG AGRI is simplification of CAP
The process of simplification is ongoing since 2015:
simplification of rules related to technical implementation (eg. reporting requirements, deadlines for submission of request for support, clarification of certain provisions)
modification of rules in basic regulations: Regulation 2017/2393 („Omnibus Regulation”) (eg. rules on producer organisations, changes of co-financing rates for some measures (insurance), clarifications concerning the greening payment…)
Overview of simplification activities:
Simplification will be a major topic in discussions on future CAP

9. CAP implementation: Crisis management
In August 2014 Russia introduced a ban on agricultural imports from EU as a counter-measure for sanctions adopted by EU
The import ban resulted in huge disruptions of the EU agricultural markets, especially in the dairy, pigmeat and fruit and vegetables sectors
The discruption affected simultaneosly several sectors and all Member States
Regular intervention measures from CMO could not stabilise the market
Exceptional market measures were introduced in 2015 and 2016; by end of 2016 markets started to stabilise
Overview of measures implemented: 9

10. Improvement of the food supply chain
CAP implementation:
Improvement of the food supply chain
Disadventaged negotiating position of farmers towards trade and processing industry identified as a weakness in the EU food supply chain:
farmers are often subject to unfair trading practices
most profits in the chain are gained by processing and trade and most risks borne by farmers
Some solutions to this problem are provided at Member State level, leading to uneven position of producers on the common EU market
European Commission will present legal proposals on unfair trading practices in 1st half of 2018 10

11. Financing of rural development
Characteristics of RD measures:
measures are co-financed (beneficiary + national co-financing + EU co-financing)
measures are elaborated in multiannual rural development programmes (RDP); Member States can choose among 20 available measures
national RDPs must cover at least 4 of the 6 EU priorities of the rural development policy
Member States must define targets related to the chosen priorities and measures which will help reach them
Rural development: set of measures aimed at helping rural areas; cca 19 billion EUR annually
6 priorities of rural development:
knowledge transfer
farm viability and competitveness
improvemeng of the food chain (animal welfare and risk management)
protection and restoration of ecosystems
promotion of resource efficiency
poverty reduction and economic development in rural areas 11

12. RD allocation by priorities 2014-2020
Note: without P1

13. RDP plan (Dwyer et al. 2016)

14. Choices made by MS in allocating direct payments (only BPS fixed!)

15. The same regulatory framework but ‘free’ policy choices – huge differences!

16. This publication has been produced with the financial assistance of the European Union
The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union