Brussels, 13 September 2024
The Commission has today authorised EU Member States to pay higher advances of Common Agriculture Policy (CAP) funds to agricultural producers, thus helping to address the liquidity problems that many of them currently face.
Provided Member States make use of this authorisation, farmers will be able to receive up to 70% of their direct payments in advance as of 16 October, compared with 50% currently. Similarly, advance payments for area and animal-based interventions under rural development can be increased by up to 85%, instead of the usual 75%. EU farmers continue to face liquidity problems, notably due to extreme weather events which have had an impact on yields in recent years, as well as high interest rates on European financial markets and high prices of agricultural inputs and commodities.
To respond to these challenges, and in line with one the CAP’s fundamental objectives to provide an economic safety net for EU farmers, a number of Member States requested this authorisation. The Commission took swift action to provide this much-needed support to EU farmers while also ensuring legal certainty for Member States. In addition to several measures that brought more flexibility for farmers and national administrations taken earlier this year, the Commission has also distributed part of the agricultural reserve to farmers of certain Member States who faced significant difficulties due to exceptional weather.
Source – EU Commission