CAP proposals: What is next for young farmers?

The European Commission is proposing that member states develop "starter packs" for young farmers under the next Common Agricultural Policy (CAP).

The commission published its long-awaited proposals for the next CAP yesterday (Wednesday, July 16), alongside proposals for the EU’s next long-term budget covering 2028-2034.

As part of the overall budget of €2 trillion, at least €300 billion will be ringfenced for income support and crisis management for farmers.

EU Commissioner for Agriculture Christophe Hansen said that the two existing CAP pillars would be merged into "one coherent set of instruments, eliminating overlaps and creating one policy — one set of measures — for farmers and rural development alike".

"We continue area-based payments and degressivity and capping will ensure that this support is better targeted, particularly benefiting young, small, and family-sized farms," he said.

The commissioner said he was "very happy" that this proposals represent "the most ambitious package yet for the current and future generation of young farmers".

EU Commissioner for Agriculture Christophe Hansen. Source: EU
EU Commissioner for Agriculture Christophe Hansen. Source: EU

Under the commission's draft proposals, all member states would have to develop a generational renewal strategy "to enhance the effectiveness and coherence of interventions targeting young farmers".

Member states will also be required to put a so-called "starter pack" in place for young farmers.

"A starter pack, including higher per-hectare support and setup aid, will make it easier for young people to enter farming," Commissioner Hansen, who will present a strategy for young farmer in the autumn, said.

The strategy on generational renewal in agriculture will assess the current demographic situation in the agriculture sector.

Member states will identify barriers for young farmers and propose national initiatives and measures to overcome them.

The commission said that starter pack for young farmers should include a set of the following measures:

  • Support for setting up of young farmers;
  • Degressive area-based income support for young farmers;
  • Investment support with higher aid intensity for young farmers;
  • Possibilities of financing investments implemented by young farmers though financial instruments;
  • Support for farm relief services;
  • Access to advisory services and training programmes tailored to young farmers' needs.

The draft proposals put forward by the commission outline that member states "shall provide support for the setting up of young farmers and the start-up of rural businesses, including the setting-up of new farmers".

The support will only be provide to young farmers who meet the conditions contained in a member state's national and regional partnership fund and plan (NRP plan).

Member states will also set the conditions for the content and submission of a business plan which must be provided by the beneficary.

The commission said that the grant support could take the form of lump sums or financial instruments or a combination of both. However, the support shall be limited to a maximum of €300,000.

"We want to make sure that all aspects that are relevant for young farmers are addressed, not only CAP instruments but also synergies with other instruments such as necessary national reforms, provision of basic services and connectivity in rural areas and much more.

"We must address the barriers that deter young people from joining the profession," Commissioner Hansen said.

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CEJA, which represents young farmer organisations in the EU, said that the commission’s CAP proposals were “hampered by a weak and unclear governance framework, leaving too much room for interpretation”.

The organisation said the proposals contained some promising developments on generational renewal, as well as a 6% earmarking of funds for young farmers.

CEJA also welcomed is the “starter pack” for young farmers, which the group said includes tools for social and economic resilience.

However, CEJA said the proposed new ‘National and Regional Partnerships’, which will see funding merged for separate policy areas, “reveals a rushed process” and sets the EU up for a “long and chaotic legislative procedure and programming period”.

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