Rules for direct EU payments to farmers

SUMMARY OF:

Regulation (EU) No 1307/2013 — rules for direct payments to farmers under the EU’s common agricultural policy

WHAT IS THE AIM OF THE REGULATION?

• It sets out the rules for direct payments made to support farmers under the EU’s common agricultural policy (CAP). These payments are made in full on the condition that farmers meet basic standards concerning the environment, climate change, good agricultural and environmental condition of land, public health, animal health, plant health and animal welfare — known as cross-compliance. Rules on cross-compliance are laid down in Regulation (EU) No 1306/2013 (see summary).
• Regulation (EU) No 1307/2013 repeals Regulation (EC) No 73/2009, which contained the previous rules governing direct payments to farmers that changed following the reform of the CAP in 2013. It also repeals Regulation (EC) No 637/2008, which related to the cotton sector.
• In 2017, the EU adopted Regulation (EU) 2017/2393, which amends Regulation (EU) No 1307/2013 and other legislation relating to the CAP:
  • Regulation (EU) No 1305/2013 setting up the European Agricultural Fund for Rural Development,
  • Regulation (EU) No 1306/2013 laying down financing, managing and monitoring rules for the EU agricultural policy,
  • Regulation (EU) No 1308/2013 on the common organisation of agricultural markets in the EU, and
  • Regulation (EU) No 652/2014 on the management of expenditure relating to the food chain, animal health and animal welfare.
• In 2020, the EU adopted amending Regulation (EU) 2020/2220, which lays down certain transitional rules for support from the European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022.

KEY POINTS

Direct payments to farmers are paid through support schemes in each EU country.

EU countries must dedicate a certain proportion of their CAP funding allocation to compulsory support schemes, as described below.

• Standard per-hectare payments. To distribute support more fairly, all EU countries had to move towards a uniform payment per hectare from 2015 (a ‘basic payment for farmers’).
• Green payments per hectare. To be granted to farmers for observing practices beneficial for the climate and the environment (30% of national funding allocation).
• Young farmer per-hectare payment. For farmers no more than 40 years old, setting up for the first time as head of their farm, up to 5 years before claiming support; this payment is available for up to 5 years.

There are also some optional support schemes. EU countries can choose to:

• support smaller farms by paying a higher amount on the first hectares (‘redistributive payment’);
• grant additional payments for areas with natural constraints;
• grant limited amounts of production-related support ('coupled support' — payments linked to specific crops or types of livestock) to help agricultural sectors in their own country that are in difficulty;
• offer a simplified scheme for small farmers — an annual payment of up to €1,250.

From 1 January 2018, the new rules contained in amending Regulation (EU) 2017/2393 came into force and include the following.

• In principle, only active farmers (meaning those whose agricultural activity is not insignificant) could be granted direct support. However, in some EU countries, the administration became too burdensome. In particular, claimants operating airports, railway services, waterworks, real-estate services and permanent sport and recreational grounds were considered inactive except if they proved otherwise. The application of that clause has become voluntary for EU countries.
• Some aspects of the rules applying to green payments have been simplified, especially for crop-diversification requirements.
• An extension of the permanent grassland definition:
  • EU countries may decide to include certain shrubs or trees that produce animal feed in permanent grassland where grasses and other herbaceous forage remain predominant, in the whole or part of their territory;
  • they may consider land not ploughed up or used for crop rotation for 5 years or more as a criterion for the classification of permanent grassland.
• Young farmers are able to more easily access all 5 years of payments.
• EU countries’ responsibilities in regard to the production-limiting nature of coupled support are clarified.
• The types of areas of ecological interest for green payments (ecological focus areas) are extended to cover areas on which plant varieties such as Miscanthus and Silphium perfoliatum are grown, and also to land lying fallow for plants that are beneficial for pollinators.

Transitional rules for the years 2021 and 2022

Amending Regulation (EU) 2020/2220, adopted in December 2020, allows for the continued application of the rules under the 2014-2020 CAP framework and ensures the continuity of payments to farmers and other beneficiaries of support from the EAGF and the EAFRD in 2021 and 2022, until the date of application of the new framework. The aim of the transitional period is to facilitate a smooth transition for beneficiaries to a new programming period.

FROM WHEN DOES THE REGULATION APPLY?

Regulation (EU) No 1307/2013 has applied since 1 January 2015.

The rules introduced by amending Regulation (EU) 2017/2393 have applied since 1 January 2018.

The rules introduced by amending Regulation (EU) 2020/2220 have applied since 1 January 2021.

BACKGROUND

For more information, see:

• The common agricultural policy at a glance — The future of the CAP (European Commission)
• Income support explained (European Commission).

MAIN DOCUMENT

Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009 (OJ L 347, 20.12.2013, pp. 608-670)

Successive amendments to Regulation (EU) No 1307/2013 have been incorporated into the original document. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Regulation (EU) No 652/2014 of the European Parliament and of the Council of 15 May 2014 laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material, amending Council Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002, (EC) No 882/2004 and (EC) No 396/2005 of the European Parliament and of the Council, Directive 2009/128/EC of the European Parliament and of the Council and Regulation (EC) No 1107/2009 of the European Parliament and of the Council and repealing Council Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC (OJ L 189, 27.6.2014, pp. 1-32)

See consolidated version.

Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, pp. 487-548)

See consolidated version.

Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, pp. 549-607)

See consolidated version.

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, pp. 671-854)

See consolidated version.

Regulation (EU) No 1310/2013 of the European Parliament and of the Council of 17 December 2013 laying down certain transitional provisions on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), amending Regulation (EU) No 1305/2013 of the European Parliament and of the Council as regards resources and their distribution in respect of the year 2014 and amending Council Regulation (EC) No 73/2009 and Regulations (EU) No 1307/2013, (EU) No 1306/2013 and (EU) No 1308/2013 of the European Parliament and of the Council as regards their application in the year 2014 (OJ L 347, 20.12.2013, pp. 865-883)

See consolidated version.

last update 03.03.2021