September 16, 2024

European Commission backs rise in advance payment of funds supporting farmers in EU

The European Commission has approved an increase in advance payments of Common Agricultural Policy (CAP) funds to assist EU farmers facing severe liquidity challenges.

This decision allows EU member states to raise the advance on direct payments from 50% to 70%, and on rural development payments tied to area and livestock from 75% to 85%, starting October 16. The move responds to ongoing financial pressures caused by extreme weather, high input costs, and elevated interest rates, which have impacted yields and financial stability in the sector.

Several member states had requested this action, aligning with the CAP's role in providing economic stability for farmers. The Commission also underscored earlier measures in 2024 that offered additional flexibility for farmers, along with distributing the agricultural reserve to aid those affected by severe weather events.

- European Commission