News GLB
European Commission increases advance on CAP
Yesterday (Wednesday, August 4), the European Commission extended the possibility of an advance on subsidies from the Common Agricultural Policy (CAP). Farmers can therefore receive a higher advance.
The Commission has taken this measure to improve the liquidity position on agricultural holdings. Parts of the sector have been hit hard by the corona crisis and several areas have been hit by severe weather, for example due to the recent flooding in parts of the Netherlands, Belgium and Germany and a heat wave in Southeastern Europe. Agriculture is one of the sectors hardest hit by the extreme weather, according to the Commission. Therefore, action is being taken to improve cash flow on farms.
Higher advance
Member States are now allowed to pay an advance of 70% on direct payments (payment entitlements). That was 50%. For subsidies from rural development funds (including POP3), that percentage goes from 75% to 85%. Final payments may be made from October 16, provided the checks have been completed. The Netherlands has opened a second period from 4 to 24 August to apply for an advance on the subsidies. In the first period, more than 9.400 entrepreneurs made use of the option of an advance.
Jurphaas Lugtenburg
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