CAP budget will be 5% lower
Farmer is a child of the bill because of Brexit
The overall budget for the Common Agricultural Policy (CAP) will be reduced by 2021% from 5. This is what the proposal for the European multi-year budget states. This is due to the departure of the British from the European Union (EU).
The total budget will therefore amount to €365 billion. The proposal for the multi-year budget states that direct payments will be reduced by 4%. According to the President of the European Commission (EC), Jean-Claude Juncker, moderate austerity measures are needed by Brexit. And in line with this, European Commissioner Günther Oettinger reports that consumers will have to be satisfied with higher prices for agricultural products.
Brexit has multiple implications for the CAP, as the budget is part of the total EU budget. However, because the British are leaving the EU, the total budget has shrunk by €13 billion. And that while more money is needed, for example for migration and defence.
European budget is decreasing
Since many countries are against a larger European budget, certain budgets will have to be cut. The CAP budget is the first to qualify, as it accounted for 40% (€408 billion) of the total EU budget.
The CAP will continue to maintain its 2 pillars. Although the direct payments remain, they become more specific. This means that rewards for good performance will be used. In addition, it concerns lower amounts. There will also be stricter environmental requirements before direct income support can be received.
European Commissioner Phil Hogan has done his best to limit the discount on direct income support as much as possible. The percentage of CAP money going to income support has also increased. According to Hogan, there will be a ceiling of €60.000 per farmer. What's left of that goes to the smaller farmers.
Nature and climate objectives
The budget for the nature, environmental and climate objectives will be increased by 2021% from 15. CAP payments in the Netherlands have been declining for some time. In 2012, €1 billion was paid, while in 2017 this fell to €876 million.
Anne-Jan Doorn
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