Saturday, October 1

The Government will send to Brussels on Wednesday the plan to distribute 47,725 million of the CAP in Spain

The European Commission is expected to approve it at the end of the first half of 2022, so that its application from 2023

The Minister council has approved in its meeting this Tuesday the CAP Strategic Plan, endowed with 47,725 million euros, which the Government will send to the European Comission this Wednesday. It is the culmination of a work of more than three years between the Government, the sector and the autonomous communities, as defended by the Minister of Agriculture, Luis Planas.

“I believe that with this plan the rural world is sufficiently equipped to face the great challenges that we have before us, with a better distribution of funds, more balanced and fairer,” the minister stressed.

In addition, as explained, these 47,725 million euros will exceed 50,000 million if the co-financing is added. Regarding direct aid, the endowment will be more than 4,800 million euros per year, while 700 million will be allocated to market measures, including sectoral programs, and another 1,700 million euros will be allocated to rural development measures.

Planas foresees that the European Commission will approve it at the end of the first half of 2022, so that it will apply as of January 1, 2023.

The Strategic Plan is a “determining” instrument to guarantee the viability of the agricultural and livestock sectors, which are the basis of the agri-food system and the main economic engine of rural Spain. Therefore, it contemplates support focused on improving the competitiveness of farms through income aid, service advice and the development measures rural in favor of innovation, the improvement of knowledge, investments, the use of technology and digitization, among other aspects.

The limitation and reduction of the basic help, which will set the maximum amount of payments at 100,000 euros and provides for a progressive reduction when it exceeds 60,000 euros. However, to avoid employment distortions, wage and labor costs may be discounted, in any case, no farm will charge more than 200,000 euros of basic income support. It also includes the redistributive payment of aid to farms larger than small and medium-sized ones.

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In addition, the plan, according to Planas, also seeks to reduce the gender gap and support for generational renewal. According to the minister, two-thirds of active farmers are expected to retire in the next decade. For this reason, he stressed that there will be premiums of up to 15% of the aid for the incorporation of young farmers and ranchers.

The minister has also highlighted that the new CAP encourages innovation and digitization of the agricultural sector, which will result in an improvement in the profitability of the farms. Planas recalled that although Spain is one of the main recipients of aid from the CAP, the support represents 20% of the income of farmers and ranchers, when in other countries it reaches 30%.

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