The European Commission has signalled that it will consider the recommendations of a report, which seeks the establishment of funding streams outside the CAP for farmers taking action on nature and climate.

The final report of the strategic dialogue on the future of EU agriculture called for both an EU agri-food just transition fund and a nature restoration fund to accelerate moves to more sustainable farming.

The proposed transition fund should provide one-off grants or loans to farmers who draw up long-term transition business plans, while the nature restoration fund is pitched as being a source of funds for those working to improve biodiversity.

The report states that efforts to improve farm sustainability should leave the sector more viable, competitive and profitable for farmers. Farmers who take environmental measures which go beyond their requirements laid down in law, should be rewarded and incentivised to do so, but payments must be based off measurable results, according to the report.

This will require the funding allocated to actions focused on climate and the environment to “substantially increase” over each year of the next two CAPs, it claims. The report calls for a reduction in the volume of chemical fertiliser and pesticides used on farms. The report seeks a review of the EU’s policies for negotiating trade deals, suggesting that there needs to be a better alignment between trade and sustainability policies to take imports in-line with the standards upheld domestically.

Another recommendation regards the promotion of plant-based diets across the EU to “improve the sustainable balance between animal and plant-based protein intake” of consumers.