Two years transition period for the new CAP: more stability for the agricultural sector achieved

Today, an interinstitutional agreement has been reached on the content and length of the so-called Transitional Regulation, which is essential to ensure a smooth transition towards the new Common Agriculture Policy (CAP), which will not be in place in time for implementation in January 2021. With today’s partial political provisional agreement, negotiated by Renew Europe MEP Elsi Katainen, EU farm subsidies and rural development funding will be continued without interruption. The rules of the current CAP will be continued in 2021 and 2022, which will provide security, predictability and legal certainty to a sector hit hard by the Covid-19 pandemic. Moreover, the Parliament negotiator has responded to the demands of the sector in light of the pressure brought about by the Covid-19 crisis and has used this legislative opportunity to secure easier access to risk-management compensations and new more flexible national fiscal measures. Katainen also secured flexibilities for a longer duration for new Rural Development new multiannual commitments in relation to agri-environment-climate, organic farming and animal welfare programmes.

After six weeks of swift and effective negotiations, the European Parliament’s Rapporteur Elsi KATAINEN commented today:

“I'm really pleased that with today’s agreement farmers will finally have certainty for the upcoming two years. This is of the utmost importance, as the sector has suffered from insecurity due to the delay in the reform of the EU’s agricultural policy and has been hit hard by the Covid-19 crisis.”

“Keeping this file on track and on time has been my key priority, since this is in the best interests of farmers in these crisis driven times. It now gives the sector predictability, stability, financial continuity and a clear regulatory framework under which farmers can plan for the upcoming two years. It also provides EU member states with further tools to help tackling the effects of the Covid-19 crisis.”

Note to editors

Today’s provisionally agreed text still needs to be complemented by the relevant figures from the Multiannual Financial Framework (MFF) for 2021-2017, which is still under negotiation. Once a deal on the future EU long-term budget will be reached, the European Parliament and Council negotiators will meet again to finalise the transitional CAP rules for 2021-2022.

ENDS