What is the overall architecture of this new CAP? Its main pillar, as is the case today, will remain the support for farmers’ income. The famous aid per hectare, 300 billion euros, has already been earmarked in the next CAP, which will run from 2028 to 2034. This 300 billion also includes exceptional aid that may come in addition to the regular aid, in case of market destabilization. Prices fall, for example, in case of overly massive imports of agricultural products, as feared by opponents of the free trade agreement with Mercosur. In addition to this first pillar of 300 billion, a second pillar that until now included aid to the rural world is amalgamated into a larger package. And that’s what’s causing concern. This basket includes all structural funds, which are the aid to the regions, but also other policies that encompass all regional aids as a whole. But also other policies such as sustainable development and the management of the European Union’s external borders. All this will be grouped together in a “partnership plan”, negotiated between the European Commission and each Member State.
In the face of concerns about the dilution of the CAP budget into a larger whole, does the Commission provide guarantees? Yes, it notably demands that 10% of these partnerships (453 billion euros in addition to the 300 intended for agricultural income) go back to rural development. The former “second pillar” of the CAP. This therefore corresponds to 45 billion euros, which are also guaranteed. This includes expenses incurred in renewing farmers’ generations, attracting young people. Support for innovation in farms, as well as aid for diversification or conversion. Finally, to be complete, 49 more billion will be added in 2028. These are the funds that were announced during the negotiations at the end of last year on the agreement with Mercosur: the anticipated blocking of funds that tilted Italy towards a “yes” to the Treaty. These 49 billion were supposed to be added to the Budget of the future CAP halfway through the next European Budget, in 2031. This money will therefore be available to farmers as of 2028.
Are farmers winners or losers with this new CAP 2028-2034? As often, it depends on how you want to read the numbers. Superficially, the 100% agricultural Budget, which corresponds to the 300 billion support to incomes, is down compared to the 386 billion of the previous CAP Budget. But if we add the 49 billion guaranteed for rural development aid. Plus the 45 billion of anticipated blocking, as the Commission does: it reaches, or even slightly surpasses, the Budget of the previous CAP.
