Transition Period for the new CAP will deliver stability for the agricultural sector hit hard by Covid-19

Today, the Committee on Agriculture and Rural Development voted on the so-called Transitional Regulation, which is essential to ensure the continuation of support for the agricultural sector in light of the new Common Agriculture Policy (CAP), which will not be in place in time for implementation in January 2021. Rapporteur Elsi Katainen has taken the approach that especially in this time of crisis, continuing with the current CAP-rules for the next two years is key in order to provide farmers with sufficient security, predictability as well as legal certainty.

Rapporteur Elsi Katainen said: “Keeping this file on track and on time has been my key priority, since this will be in the best interests of farmers in these crisis driven times. Farmers need predictability, stability and financial continuity and a clear horizon for the upcoming two years.”

Katainen´s report sends a clear message also with a view to the need for a robust budget and demands more flexibility for Member States for higher co-financing as well as the ability to do more on agricultural-environmental measures. Moreover, it reflects the increased demand for market measures to tackle the disrupted situation caused by Covid-19, proposing easier national fiscal measures that Member States are able to implement more efficient state aid measures during the transition period.

Katainen: “At a time of great uncertainty, we need clear rules and strong financing – it is obvious that we cannot do more with less. Member States must be able to prepare for the new CAP in a timely and well-resourced manner during this transition period. Food producers cannot work under an 'old rules, less money'-framework.“

ENDS