Bias persists against newer EU states

Proposals

Direct payments

For farmers in member states that receive less than 90% of the EU average, the difference between the payment and 90% of the EU average will be reduced by one third. For example, if a farmer gets 75% of the EU average (ie, 15% lower than 90%) this gap will be reduced by one third so they get 80% of the EU average

Active farmers

To qualify for direct payments, organisations will have to demonstrate that at least part of their activities involves active farming.

Greening

30% of direct payments will be linked to farming in an environmentally sustainable way. This will require farmers to respect crop diversity. No more than 70% of cultivated land can be planted with a single crop, a stipulation intended to tackle the problems of monoculture. Farmers will also have to maintain permanent pasture and take 7% of land out of production as an environmental focus area.

Capping

The maximum amount an enterprise can receive in direct farm aid will be capped at €300,000. The amount of direct payments below that level will be reduced according to a sliding scale based on income bands of €50,000. Capping will not apply to 30% of payments earmarked for greening. Member states will be able to use the funds generated by capping for rural development spending.

Simplification

The payments system will be simplified for farmers with holdings of three hectares or less.

Other measures

Higher direct payments to encourage young farmers.

Member states can use 5% of direct payments for less-favoured areas.

Intervention and other market support measures (such as aid for private storage) will be maintained as a safety net.

Farmers will be able to participate in the European Innovation Framework to speed up the transfer of new technologies.