Access to finance and 'active farmer' definition in new simplification proposals

The measures, proposed as part of the review package of the Multi-Annual Financial Framework (MFF), aim to build on EU Commissioner for Agriculture Phil Hogan’s promise to simplify the CAP. The measure apply to all four of the basic Common Agricultural Policy (CAP) regulations - direct payments, rural development, CMO and horizontal regulation.

Changes to rural development

Changes are proposed to rural development regulation to provide for a sector specific income stabilisation tool (IST). Under this measure, member states will be able to design a tool tailored for a specific sector, which it is intended will make it more attractive for both farmers and administrations.

Further changes to the rural development regulation introduce simpler rules for accessing loans and other financial instruments. The measure aims to give the necessary boost to make better use of financial instruments in the agricultural sector and providing greater access to capital for farmers, particularly young farmers . The overall aim is to ensure the better targeting of public money and to increase the competitiveness of the farming sector.

Changes to direct payments regulation

The Commission is proposing to allow member states greater discretion in the application of the definition of an “active farmer”. This will allow individual member states to decide whether or not they wish to continue applying the existing definition of "active farmer".

The changes proposed ... will remove a number of key bottlenecks and make a considerable difference in the implementation of the policy, particularly to the benefit of farmers

Co-decision

The proposals require the full co-decision with the Council and the European Parliament. They do not change the orientation of policy and the Commission aims for them to be in place by the start of 2018.

“In terms of the Common Agricultural Policy, the changes proposed are all important and, taken with the previous simplification actions, will remove a number of key bottlenecks and make a considerable difference in the implementation of the policy, particularly to the benefit of farmers,” Commissioner Hogan said: "I am particularly pleased that a number of the changes proposed today, notably in relation to the IST, access to financial instruments and the application of the active farmer clause, respond directly to the concerns of farmers that I have been hearing consistently since my appointment and throughout my visits to member states."

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