It looks likely that the new budget for the European Union, known as the Multi-annual Financial Framework (MFF) - which will be revealed tomorrow (Wednesday, July 16) - will condense funding for the Common Agricultural Policy (CAP) into one single fund.

In documents seen by Agriland, it is stated that 2024-2029 Political Guidelines of the European Commission call for a CAP that is "more targeted and finds the right balance between incentives, investment and regulation and ensures that farmers have a fair and sufficient income".

The commission proposal outlines that "the new framework guarantees coherence by integrating the CAP interventions from the current two-funds structure under one single umbrella. Such alignment brings further flexibility and simplification," it stated.

The proposal also stressed that by bringing cohesion policy and the CAP under a single programming approach, member states will have "a wider toolbox to address the challenges faced by farmers and communities in rural areas".

The commission references the 2024 report of the Strategic Dialogue on the Future of EU Agriculture, which called for a CAP that:

Provides socio-economic support targeted to the farmers who need it most;
Promotes positive environmental, social and animal welfare outcomes for society;
Invigorates enabling conditions for rural areas.

That report also called for a more proactive role of cohesion policy to support the attractiveness of rural areas and the CAP.

Additional inputs on the future of the CAP were collected through dedicated meetings organised in the framework of existing EU stakeholders’ platforms and ad hoc technical workshops bringing together EU stakeholders and member states, the commission added.

The commission has stated that CAP support should be focused on active farmers defined in compliance with WTO (World Trade Organisation) rules.

"With a view to further improve the performance of the CAP, area-based income support should be targeted towards farmers who exercise agriculture as a principal activity," it stated.

"Member states should be allowed to also use negative lists to identify those applicants who do not meet the definition of ‘farmer'."

The commission is instructing member states to define in their National Regional Partnership (NRP) Plans, the definitions of 'agricultural activity', 'agricultural area', 'eligible hectare' and 'young farmer' with guidelines cited on how to determine these.

According to the document "young farmer shall be determined in such a way as to include: (i) an upper age limit set between 35 years and 40 years; (ii) the conditions for being ‘head of the holding’."

The conditions for being head of holding shall be determined by member states.

"Where a farmer is deemed to meet the definition of ‘young farmer’ at the moment of first access to support, that status shall be maintained for the full duration of the period of eligibility established under the relevant support scheme, irrespective of the farmer subsequently exceeding the upper age limit," the document on the MFF outlines.

Each member state will have to prepare and submit to the commission the NRP Plan setting out their agenda of reforms, investments and other interventions.