   
  
G/AG/N/EU/88  
 
7 August 2023  
(23-5376) Page: 1/10 
Committee on Agriculture  Original: English  
 
NOTIFICATION  
The following submission, dated 27 July  2023, is being circulated at the request of the delegation of 
the European Union . The notification concerns new or modified domestic support measures exempt 
from reduction ( Table DS:2 ). 
 
_______________  
 
 
This notification covers a set of Regulations of the European Union's reformed direct support 
schemes, rural development, and common market organisation policies under the 2023 -2027 
Common Agricultural Policy (CAP).  
 
 
 
  G/AG/N/EU/88  
 
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  Table DS:2  
DOMESTIC SUPPORT: EUROPEAN  UNION  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
 
(1) FULL TITLE OF MEASURE:  
On 2 December 2021, the agreement on the reform of the Common Agricultural Policy was formally 
adopted. The new legislation came into force in January 2023 and covers farmers ' applications 
introduced as of 2023.   
The new CAP is a modernised policy, with a strong emphasis on results and performanc e. The policy 
as applicable as of 2023 focuses on ten specific objectives, linked to common EU goals for social, 
environmental, and economic sustainability in agriculture and rural areas. It seeks to ensure a more 
sustainable future for European farmers, p rovide more targeted support to smaller farms, and allow 
greater flexibility for EU member States to adapt measures to local conditions. Agriculture and rural 
areas are central to the European Green Deal1, and the new CAP will be a key tool in reaching th e 
ambitions of the Farm to Fork2 and Biodiversity strategies3.  
Under the new policy, each EU member State designed a national CAP Strategic Plan, combining 
funding for income support, rural development, and market measures. When designing their 
Strategi c Plans, EU member States contribute to the ten specific objectives through a toolbox of 
broad policy measures provided by the EU level legislation, which can be shaped around national 
needs and capabilities. All Strategic Plans were approved by the end of  calendar year 2022 in order 
to allow a smooth start of the new policy in 2023.   
Building on the previous system of cross -compliance implemented until 2022, the system of new 
conditionality links full receipt of CAP support to the compliance of farmers and  other beneficiaries 
with basic standards concerning the environment, climate change, public health, plant health and 
animal welfare. The basic standards encompass in a streamlined form a list of statutory management 
requirements (SMRs) and standards of go od agricultural and environmental conditions of land 
(GAEC  standards). Those basic standards should better take into account the environmental and 
climate challenges and the new environmental architecture of the CAP, thus delivering a higher level 
of envir onmental and climate ambition as set out in the Commission communication on the 'Future 
of Food and Farming ' and the MFF for the years 2021 to 2027, established by Council Regulation 
(EU, Euratom) 2020/2093.   
Conditionality aims to contribute to the develo pment of sustainable agriculture through better 
awareness on the part of beneficiaries of the need to comply with those basic standards. It also aims 
to make the CAP more compatible with the expectations of society through improving consistency 
of the CAP with the environment, public health, plant health and animal welfare objectives. 
Conditionality forms an integral part of the environmental architecture of the CAP, as part of the 
baseline for more ambitious environmental and climate -related commitments an d should be 
comprehensively applied across the Union. Member States should ensure that proportionate, 
effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to 
farmers and other beneficiaries who do not comply with thos e requirements.   
CAP legislation lays down a common set of indicators as part of a new performance, monitoring and 
evaluation framework. The indicators will be monitored through annual performance reports and a 
biannual review of the performance of CAP str ategic plans to assess the progress of EU member 
states in reaching their targets and the objectives of the CAP.  
 
 
 
1 A European Green Deal (europa.eu) . 
2 Farm to Fork Strategy (europa.eu) . 
3 Biodiversity strategy for 2030 (europa.eu) . G/AG/N/EU/88  
 
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  (2) DOMESTIC LEGISLATION REFERENCE:  
• Regulation (EU) No  2021/2115  of the European Parliament and of the Council of 
2 December  2021 establishing rules on support for strategic plans to be drawn up by member 
States under the common agricultural policy (CAP Strategic Plans) and financed by the European 
Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rura l 
Development (EAFRD) and repealing Regulations (EU) No  1305/20 13 and (EU) 1307/2013 . 
 
• Regulation (EU) No  2021/2116 of the European Parliament and of the Council of 
2 December  2021 on the financing, management and monitoring of the common agricultural 
policy and repealing Regulation (EU) No  1306/2013 . 
 
• Regulation (EU) No 2021/2117  of the European Parliament and the of the Council of 
2 December 2021 amending Regulations (EU) No 1308/2013 establishing a common 
organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for 
agricultural products and foodstuf fs, (EU) No 251/2014 on the definition, description, 
presentation, labelling and the protection of geographical indications of aromatised wine 
products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost 
regions of the Union . 
(3) DETAILED DESCRIPTION OF MEASURE WITH REFERENCE TO CRITERIA:  
(1.3.1) Decoupled Direct Payments  
Direct payments are aimed at supporting and stabilising farmers" incomes. They also ensure the 
provision of environmental public goods, as they are conditional on compliance with basic standards 
for good agriculture and environmental conditions (GAECs).  
• Basic Income Support for Sustainability (BISS) :  
In order to guarantee a minimum level of agricultural income support for all active farmers, as well 
as to comply with the objective of ensuring a fair standard of living for the agricultural community 
an annual area -based decoupled direct payment is established as the type of intervention 'basic 
income support for sustainability '. 
It is an annual decoupl ed payment per hectare, granted with no requirement to produce and with 
no link to any type or volume of production. It is a decoupled income support not related to price 
support. Member States can implement the basic income support for sustainability on t he basis of 
payment entitlements established previously under the decoupled direct payments scheme, as 
defined in Title III, Chapter I, Section 1, of Regulation (EU) No 1307/2013. The unit value of payment 
entitlements is proportional to their value as est ablished under the basic payment schemes pursuant 
to Regulation (EU) No 1307/2013, taking into account the payments for agricultural practices 
beneficial for the climate and the environment. Eligibility for the BISS as defined in Title III, 
Chapter  II, Sec tion 1, Subsection 2 of Regulation (EU) 2021/2115 . It is a precondition for the 
complementary income support payments under the decoupled income scheme: Complementary 
redistributive income support for sustainability and Complementary income support for you ng 
farmers.  
Payments under the BISS comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of paragraph 6 if implementation is based on payment entitlements.  
As such, the amount of payments shall not be rel ated to, or based on, the factors of production 
employed after the base period.  
Payments under the BISS comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of paragraph 5 if implementation is not based o n payment 
entitlements.  G/AG/N/EU/88  
 
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  • Payments for Small Farmers  
Small farms remain a cornerstone of Union agriculture as they play a vital role in supporting rural 
employment and contribute to territorial development. In order to promote a more balanced 
distribution of support and to reduce administrative burden for be neficiaries of small amounts, 
member States have the option to design a specific intervention for small farmers replacing the 
other direct payments interventions.  
The payment can be administered as a lump sum, or as a per hectare payment.  
The Small Farmer s Scheme is a payment granted with no requirement to produce and with no link 
to any type or volume of production.  It is a decoupled income support not related to price support.  
Payments under the Small Farmers Scheme comply with paragraph 1 of Annex 2 to the Agreement 
on Agriculture as well as with the relevant criteria of paragraph 5.  
• Complementary income support  
It is within the responsibility of EU member States to provide fo r a targeted distribution of direct 
payments and to reinforce income support for those who need it most. For this purpose, the 
complementary redistributive income support for sustainability and the payment for young farmers 
are created.  
Complementary Redi stributive Income Support for Sustainability (CRISS)  
Tool for redistribution of direct payments from larger to smaller or medium -sized holdings by 
providing for a redistributive income support in the form of an annual decoupled payment per eligible 
hectare  to farmers who are entitled to a payment under the basic income support.  
In view of the acknowledged need to promote a more balanced distribution of support to small and 
medium -sized holdings in a visible and measurable way, member States should implement  
complementary redistributive income support for sustainability and dedicate at least 10 % of the 
direct payments envelope to such support.  
The Complementary Redistributive Income Support for Sustainability is a payment granted with no 
requirement to produ ce and with no link to any type or volume of production. It is a decoupled 
income support not related to price support, paid as supplement to the BISS.  
Payments under the CRISS comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of paragraph 6  if implementation under the Basic Income Support 
for sustainability is based on payment entitlements.  
Payments under the CRISS comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of, paragraph 5 if implementation under the Basic Income Support 
for sustainability is not based on payment entitlements.  
Complementary Income Support for Young Farmers (CISYF)  
The creation and development of new economic activity in the  agricultural sector by young farmers 
is financially challenging and constitutes an element that must be considered when designing the 
intervention strategy in the allocation and targeting of direct payments. Member States can establish 
a complementary inc ome support for young farmers, providing them with income support after the 
initial setting -up.  
Based on the needs assessment, the calculation method for the payment is either per hectare or as 
a lump sum, and possibly limited to a maximum number of hecta res. Since it should only cover the 
initial period of the life of the business, such payment should only be granted for a maximum duration 
after the submission of aid application and shortly after the initial setting -up.  G/AG/N/EU/88  
 
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  Payments under the CISYF comply wi th paragraph 1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of paragraph 6  if implementation of the Basic Income Support for 
sustainability is based on payment entitlements.  
Payments under the CISYF comply with paragraph  1 of Annex 2 to the Agreement on Agriculture as 
well as with the relevant criteria of paragraph 5 if implementation of the Basic Income Support for 
sustainability is not based on payment entitlements.  
• Schemes for the climate, the environment and animal we lfare (eco -schemes)  
The CAP should ensure that member States increase the environmental delivery by respecting local 
needs and farmers ' actual circumstances. Member States set up eco -schemes which are voluntary 
for farmers, and which should be fully coordi nated with the other relevant interventions.  
They can take form of a payment granted either for and remunerating the provision of public goods 
by agricultural practices beneficial to the environment and climate (additional to the BISS payment), 
or as comp ensation for carrying out those practices. In both cases, they should aim to enhance the 
environmental and climate -related performance of the CAP and should consequently be conceived 
to go beyond the mandatory requirements already prescribed by the system of conditionality.  
The Schemes for the climate, the environment and animal welfare  is a payment granted with no 
requirement to produce and with no link to any type or volume of production. It is a decoupled 
income support not related to price support.  
If additional payments to the BISS, Schemes for the climate, the eco -schemes comply wi th 
paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of 
paragraph 6 if implementation of the BISS is based on payment entitlements.  
If additional payments to the BISS, Schemes for the climate, the eco -schemes com ply with 
paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of 
paragraph 5 if implementation of the BISS is not based on payment entitlements.  
Schemes for the climate, the environment and animal welfare  granted as compensation for carrying 
out practices beneficial to the environment and climate comply with  paragraph 1 of Annex 2 to the 
Agreement on Agriculture as well as with the relevant criteria of paragraph 12.  
Eligibility for such the payments is determined as part of a clearly defined government environmental 
or conservation programme and are dependent on the fulfilment of specific conditions related to the 
environmental and climate related performance. The amount of payment is limited to the extra costs 
or los s of income involved in complying with the programme.   
(1.3.2) Coupled Direct Payments  
• Coupled Income  Support  
Within the framework of the direct payments system, Coupled Income Support can be applied in up 
to 19 agricultural sectors and type of production  at the choice of each member State. The support 
is limited in terms of both amounts available and objectives. It can take form of an annual payment 
per hectare or per animal.  
Member States may grant Coupled Income Support in clearly defined cases where s pecific types of 
farming or specific agricultural sectors that are particularly important for economic and/or social 
and/or environmental reasons undergo certain difficulties in terms of risk of decline or of 
abandonment of production.  
Member States may grant Coupled Income Support as direct payments under production -limiting 
programmes within defined quantitative limits and based on fixed areas and yields or on a fixed 
number of animals incompliance with Article 6.5 of the Agreement on Agriculture.  
Other types of Coupled Support Payments applied without the production -limiting constraints are 
out of scope of this notification.  G/AG/N/EU/88  
 
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  • Crop specific payment for cotton  
The current regime is designed to encourage a competitive, sustainable, and market -driven cotton 
sector, while safeguarding the legal commitments of supporting the production of cotton in regions 
of the EU where it is important for the agricultural economy .  
Crop-specific payments for cotton are available in accordance with Article 37 of Regulation (EU) 
No 2021/2115 in four member States. To be eligible for crop -specific aid, farmers must only grow 
cotton on land authorised by the member States, using autho rised varieties of seed and subject to 
minimum quality of cotton actually harvested. The crop -specific payment for cotton is paid for cotton 
of sound, fair, and marketable quality. The payments are based on fixed areas and yields . If the 
eligible cotton ar ea exceeds the base area, aid is reduced proportionally to the overshoot.  
Payments under crop -specific scheme for cotton comply with Article 6.5 of the Agreement on 
Agriculture . 
(1.3.3)   Sectorial interventions  
A number of interventions in certain sectors are established in accordance with the requirements of 
Annex 2 of the Agreement on Agriculture. They relate to the sectors of fruit and vegetables, wine, 
apiculture products, olive oil and table olives and hops sectors, as well as for other sectors among 
the sectors referred to in Article 1(2) of Regulation (EU) No 1308/20134 of the European Parliament 
and of the Council and sectors covering products listed in Annex VI to Regulation (EU) No  2021/2115.  
Fruit and vegetables, hops, olive oil , table olives and other sectors referred to in Article  42, 
point (f)  
Investments in tangible and intangible assets, research and experimental and innovative production 
methods and other actions, in areas such as:  
- Soil conservation, including the enhancement of soil carbon and soil structure, and the 
Reductio n of contaminants  -  Paragraph 12 ; 
- Improvement of the use of and sound management of water, including water saving, water 
conservation and drainage  - Paragraph 12 ; 
- Preventing damage caused by adverse climatic events and promoting the development and 
use of varieties, breeds and management practices adapted to changing climate conditions  
- Paragraph 12 ; 
- Increasing energy saving, energy efficiency and the use of renewable energy  - 
Paragraph  12 or  11; 
- Ecological packaging, only in the field of research and e xperimental production  – 
Paragraph  2; 
- Biosecurity, animal health and welfare  - Paragraph 12 ; 
- Reducing emissions and waste, improving the use of by -products, including their reuse and 
valorisation, and the management of waste  - Paragraph 11 or 12 ; 
- Improving  resilience against pests and reducing risks and impacts of pesticide use, 
including implementing Integrated Pest Management Techniques  - Paragraph 2 or 11 or 
12; 
- Improving resilience against animal disease and reducing the use of veterinary medicines, 
including antibiotics  - Paragraph 2 ; 
- Creating and maintaining habitats favourable to biodiversity  - Paragraph 12 ; 
- Improving product quality  - Paragraph 2 ; 
- Improving genetic resources  - Paragraph 2 ; 
- Improving the conditions of employment and ensuring compliance with employer 
obligations as well as occupational health and safety requirements in accordance with 
Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152  - Paragraph 2 ; 
- Advisory services and technical assistance - Paragraph 2 ; 
- Training and excha nge of best practices – Paragraph 2 ; 
 
4 Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing a common organisation of the markets in agricultural products and repealing Council Regulations 
(EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, 
p. 671).  G/AG/N/EU/88  
 
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  - Organic or integrated production – Paragraph 12  
- Actions to increase the sustainability and efficiency of transport and storage – Paragraph 11, 
12 or 2 ; 
- Promotion, communication, and marketing – Paragraph 2 ; 
- Quality schemes – Paragraph 2 ; 
- Traceability and certification systems – Paragraph 2 ; 
- Climate change adaptation and mitigation – Paragraphs 11, 2 or 12 ; 
- Mutual funds – Paragraph 7 or 2 ; 
- Investments in tangible and intangible assets – Paragraph 11 or 12 ; 
- Orchard or olive groves replanting – Paragraph 8 ; 
- Restocking with livestock for health reasons or because of losses resulting from natural 
disasters – Paragraph 8 ; 
- Coaching – Paragraph 2 ; 
- Implementation and management of third -country phytosanitary requiremen ts – 
Paragraph  2 
- Communication actions – Paragraph 2 ; 
Apiculture  
- Advisory services, technical assistance, training, information and exchange of best practices 
– Paragraph 2 ; 
- Investment in tangible and intangible assets, as well as other actions, including for 
combatting beehive invaders and diseases – Paragraph 11 or 12 or 2 ; 
- Investment in tangible and intangible assets, as well as other actions, including for 
preventing damage caused by adverse climatic conditions, development and use of 
management practic es – Paragraph 11 or 12 or 2 ; 
- Support laboratories – Paragraph 2 ; 
- Research programmes – Paragraph 2 ; 
- Promotion, communication and marketing – Paragraph 2 ; 
- Enhancing product quality – Paragraph 2 ; 
Wine   
- Restructuring and conversion – Paragraph 8, 11 or 12 ; 
- Investments in tangible and intangible assets – Paragraph 11 ; 
- Tangible and intangible investments in innovation – Paragraph 11 ; 
- Advisory services – Paragraph 2 ; 
- Information actions – Paragraph 2 ; 
- Promotion of wine tourism – Paragraph 2 ; 
- Improvement of mar ket knowledge – Paragraph 2 ; 
- Promotion and communication – Paragraph 2 ; 
- Administrative costs of mutual funds – Paragraph 2 ; 
- Investments to enhance sustainability – Paragraph 2 . 
(3.1.4) Types of Interventions in Rural Development  
For interventions for rural  development, principles are set out at Union level, in particular with regard 
to the basic requirements for the member States to apply selection criteria. Member States should 
have ample discretion to lay down specific conditions according to their needs.   
Several different elements/measures of the new rural development interventions cover the following 
elements within the scope of Annex 2 to the Agreement on Agriculture. For those type of measures 
member States had the freedom to design their interventions as Green Box compatible, choosing 
the Paragraph most suitable to their situation out of those listed in Annex 2 to the Agreement on 
Agriculture. Consequently, the following choices were applied in the MS CAP Plans.  
Environmental, climate -related and other management commitments  
Types of intervention for rural development include payments for environmental, climate -related 
and other management commitments that member States should support throughout  their 
territories, in accordance with their specific national, regional or local needs.  G/AG/N/EU/88  
 
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  Payments to farmers and other land managers who undertake, on a voluntary basis, management 
commitments that contribute to climate change mitigation and adaptation an d to the protection and 
improvement of the environment including water quality and quantity, air quality, soil, biodiversity 
and ecosystem services including voluntary commitments in Natura 2000 areas and support for 
genetic diversity.  The payment is limit ed to the additional costs incurred and income foregone.  
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture 
as well as with the relevant criteria of paragraph 12.  
Natural or other area -specific constraints  
In order to ensure a fair income and a resilient agricultural sector across the Union territory, member 
States can grant support to farmers in areas facing natural and other area -specific constraints, 
including mountain and island areas.  
Payme nts are made only to compensate beneficiaries for all, or part of the additional costs and 
income foregone related to the natural or other area specific constraints in the area concerned.  
Payments under this measure comply with paragraph 1 of Annex 2 to th e Agreement on Agriculture 
as well as with the relevant criteria of paragraph 13.  
Area-specific disadvantages resulting from certain mandatory requirements . A measure aiming at 
compensating beneficiaries for disadvantages related to the implementation of N atura 2000, 
established by Directive 92/43/EEC, and of Directive 2000/60/EC, and in order to contribute to the 
effective management of Natura 2000 sites. Support should also be made available to farmers to 
help address disadvantages in river basin areas re sulting from the implementation of 
Directive  2000/60/EC.  
Support is linked to specific requirements described in the CAP Strategic Plans that go beyond 
relevant mandatory standards and requirements. Payments granted annually per hectare can only 
be grante d to compensate beneficiaries for all or part of the additional costs and income foregone 
related to the area -specific disadvantages in the area concerned.  
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture 
as we ll as with the relevant criteria of paragraph 12.  
Investments including investments in irrigation  
Support for investments, productive as well as non -productive, on -farm as well as off -farm. Such 
investments may concern, inter alia, infrastructures related to the development, modernisation or 
adaptation to climate change of agriculture and forestry, including access to farm and forest land, 
land consolidation and improvement, agro -forestry practices and the supply and saving of energy 
and water. It may also cover investments in the restoration of agricultural or forestry potential 
following natural disasters, adverse climatic events or catastrophic events, including fires, storms, 
floods, pests and diseases. Member States are required to make the best use of the available funds 
for investments by aligning support for investments with the relevant Union rules in the areas of 
environment and animal welfare.  
When providing support for investments, member States should take particularly into account the 
cross-cutting objective of modernising agriculture and rural areas by fostering and sharing of 
knowledge, innovation and digitalisation in agriculture and rural areas, and encouraging their uptake  
Payments under this measure comply with paragraph 1 of Annex 2 to the  Agreement on Agriculture 
as well as with the relevant criteria of paragraph 11 or 8.  
Cooperation  
Support for the establishment and implementation of cooperation between at least two entities with 
a view to achieving the objectives of the CAP. Such support  can include the setting -up of quality 
schemes and information and promotion activities for quality schemes; collective environmental and 
climate action; the promotion of short supply chain and local markets; pilot projects; operational G/AG/N/EU/88  
 
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  group projects with in the EIP local development projects, smart villages, buyers ' clubs and 
machinery rings; farm partnerships; forest management plans; networks and clusters; social 
farming; community supported agriculture; actions within the scope of LEADER; and the setting -up 
of producer groups and producer organisations, as well as  other forms of cooperation deemed 
necessary to achieve the specific objectives of the CAP.  
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture 
as well as with the relevant criteria of paragraph 2.  
Knowledge excha nge and dissemination of information  
Exchange of knowledge and focus on innovation is a cross -cutting objective for the new CAP. The 
CAP continues to support the interactive innovation model, which enhances the collaboration 
between actors to make best use  of complementary knowledge with a view to spreading solutions 
ready for practice. Farm advisory services are strengthened. Each member State funds a number of 
actions aimed at knowledge exchange and innovation, as well as facilitate the development by 
farmers of farm -level strategies to increase the resilience of their holdings.  
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture 
as well as with the relevant criteria of paragraph 2.  
OTHER SCHEMES  
• Aid for the supp ly of fruits and vegetables and of milk and milk products in educational 
establishments  
This scheme allows the European Union to support the distribution of fruit and vegetables and of 
milk and milk products to children who regularly attend nurseries, pre -schools, primary and 
secondary -level educational establishments. The objective is to increase the consumption of selected 
agricultural products and shaping healthier diets. The definitive allocation of aid per member State 
participating in the scheme is de cided on a yearly basis within the limits of the overall EU budget. 
Member States may, in addition to Union aid, grant national aid which may be financed by means 
of a levy on the sector concerned or by means of any other contribution from the private sect or. The 
overall budgetary envelope from the EU budget for the Scheme is EUR 220.8 million per school year.  
Agricultural products purchases by the government are at current market prices and the financing 
and administration of the aid is transparent.   
The scheme also supports accompanying educational  materials  with the aim of educatin g the children 
about healthy eating habits and their implications for public health, national dietary 
recommendations, local food chains, organic farming, sustainable food produ ction and consumption 
and combating food waste and reinforcing the link with agriculture.  
Payments from the school fruit and vegetable scheme comply with paragraph 1 of Annex 2 to the 
Agreement on Agriculture as well as with the relevant criteria of parag raph 4.  
(4) COST OF MEASURE:  
The overall EU budget is governed by the "Multi Annual Financial Framework " (MFF) that sets out 
the maximum expenditure per policy area for the EU. The MFF for the period 2021 to 2027 was 
agreed by the Council and the European Parliament on 17 December 2020 and published in the 
official Journal of the European Union L437 on 28.12 .2020 - Council Regulation (EU, Euratom) 
2020/2093 of 17 December 2020 laying down the multiannual Financial framework for the years 
2021 to 2027. The amounts agreed for the Common Agricultural Policy (CAP) are as follows:  
  G/AG/N/EU/88  
 
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  Commitments CAP 2021 to 2027  EUR billion; current prices  
Fund  2021  2022  2023  2024  2025  2026  2027  TOTAL  
Direct payments  38.1 38.4 38.5 38.6 38.7 38.8 38.9 270.0 
Market related 
expenditure  3.1 3.1 3.2 3.2 3.2 3.2 3.2 22.3 
EAGF – Total needs  41.2 41.5 41.6 41.8 41.9 42.0 42.2 292.3 
EAFRD (MFF)  14.8 12.1 12.1 12.1 12.1 12.1 12.1 87.4 
EAFRD (NGEU)  2.4 5.7      8.1 
EAFRD  17.2 17.8 12.1 12.1 12.1 12.1 12.1 95.5 
CAP Total  58.4 59.3 53.8 53.9 54.0 54.2 54.3 387.8 
 
The EU budget for agriculture is financed through two funds. European Agriculture Guarantee Fund, 
EAGF , that finances all expenditure related to Direct Payments as well as all market related 
expenditure. Measures related to Rural Development are financed t hrough the European Agricultural 
Fund for Rural Development EAFRD.  The amounts in the table above are for commitments and set 
out the annual maximum amounts that can be spent by each fund. In particular for the EAFRD the 
actual payments may differ signific antly, since the payment for measures or interventions will only 
take place after the finalisation of the projects or interventions concerned, e.g. in case of investment 
subsidies.   
Due to delay in agreeing the EU 's legal framework for the CAP for the peri od 2021 -2027, a 
Transitional Regulation was adopted to cover 2021 and 2022.  
(5) DATE OF ENTRY INTO EFFECT:  
1 January 2023.  
(6) PERIOD OF APPLICATION:  
Budget set for the period 2023 -2027.  
(7) PRODUCTS TO PRINCIPALLY BENEFIT (IF ANY INDIVIDUAL  PRODUCT(S)):  
Support under direct payments (BISS, small farmers scheme, CRISS, CISYF and schemes for the 
environment and animal welfare under Regulation (EU) 2021/2115) are decoupled payments and 
not provided for individual products.   
Coupled Income Support (Regulation (EU) No 2021/2115) may be applied (depending on member 
State decision and European Commission approval) to the following products: cereals; oilseeds 
excluding confectionary sunflower seeds, protein crops, including legumes and mixtures of legumes 
and grasses provided that legumes remain predominant in the mixture; flax; hemp; rice; nuts; 
starch potatoes; milk and milk products; seeds; sheep meat and goat meat; beef and veal; olive oil 
and table olives; silk worms; dried fodder; hops; sugar beet, cane a nd chicory roots; fruit and 
vegetables; short rotation coppice.  
The cotton crop specific payment (Regulation (EU) No 2021/2115) is for cotton.  
Rural development (Regulation (EU) No 2021/2115): the support is not provided for individual 
products.  
__________  