EAGF and EAFRD expenditure
1. The EAGF shall finance the types of intervention related to:
(a)
direct payments laid down in Article 16;
(b)
interventions in certain sectors laid down in Title III, Chapter III.
2. The EAFRD shall finance the types of intervention referred to in Title III, Chapter IV, and technical assistance at the initiative of the Member States referred to in Article 94.
Eligibility of expenditure
1. Expenditure shall be eligible:
(a)
for a contribution from the EAGF from 1 January of the year following the year of the approval of the CAP Strategic Plan by the Commission;
(b)
for a contribution from the EAFRD from the date of submission of the CAP Strategic Plan, but not before 1 January 2023.
2. Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAGF after the approval of that amendment by the Commission and from the date of effect of the amendment set by the Member State concerned in accordance with Article 119(8).
3. Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAFRD from the date of submission to the Commission of the request for amendment, or from the date of notification of modification referred to in Article 119(9).
By way of derogation from the first subparagraph of this paragraph and from paragraph 4, second subparagraph, the CAP Strategic Plan may provide that, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socio-economic conditions of the Member State or region, the eligibility of EAFRD-financed expenditure relating to amendments to the CAP Strategic Plan may start from the date on which the event occurred.
4. Expenditure shall be eligible for a contribution from the EAFRD if it has been incurred by a beneficiary and paid by 31 December 2029. In addition, expenditure shall be eligible for a contribution from the EAFRD only if the relevant aid is actually paid by the paying agency by 31 December 2029.
Member States shall set the starting date of eligibility of costs incurred by the beneficiary. The starting date shall not be before 1 January 2023.
Operations shall not be eligible for support where they have been physically completed or fully implemented before the application for support is submitted to the managing authority, irrespective of whether all related payments have been made.
However, operations relating to early tending of seedling stands and tending of young stands in accordance with sustainable forest management principles and addressing one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f), as defined by the Member State, may be eligible for support even if they had been physically completed before the application for support is submitted to the managing authority.
5. Contributions in kind and depreciation costs may be eligible for support under the EAFRD, subject to conditions to be set by the Member States.
Financial allocations for types of intervention in the form of direct payments
1. Without prejudice to Article 17 of Regulation (EU) 2021/2116, the total amount for types of intervention in the form of direct payments which may be granted in a Member State pursuant to Title III, Chapter II, of this Regulation in respect of a calendar year shall not exceed the financial allocation of that Member State set out in Annex V.
Without prejudice to Article 17 of Regulation (EU) 2021/2116, the maximum amount which may be granted in a Member State, in a calendar year, pursuant to Title III, Chapter II, Section 3, Subsection 2, of this Regulation and before the application of Article 17 of this Regulation, shall not exceed the financial allocation of that Member State set out in Annex VIII.
For the purpose of Articles 96, 97 and 98, the financial allocation of a Member State set out in Annex V after deduction of the amounts set out in Annex VIII and before any transfers pursuant to Article 17 is set out in Annex IX.
2. The Commission is empowered to adopt delegated acts in accordance with Article 152 amending the Member States’ allocations set out in Annexes V and IX to take account of the developments relating to the total maximum amount of direct payments that may be granted, including the transfers referred to in Articles 17 and 103, transfers of financial allocations referred to in Article 88(5) and any deductions needed to finance types of intervention in other sectors referred to in Article 88(6).
However, the adaptation of Annex IX shall not take into account any transfers in accordance with Article 17.
3. The amount of the indicative financial allocations per intervention referred to in Article 101 for the types of intervention in the form of direct payments laid down in Article 16 to be granted in a Member State in respect of a calendar year may exceed the allocation of that Member State set out in Annex V by the estimated amount of reduction of payments taken up in the CAP Strategic Plan in accordance with Article 112(3), point (a), second subparagraph.
Financial allocations for certain types of intervention in certain sectors
1. The Union financial assistance for types of intervention in the wine sector is allocated to Member States as set out in Annex VII.
2. The Union financial assistance for types of intervention in the apiculture sector is allocated to Member States as set out in Annex X.
3. The Union financial assistance for types of intervention in the hops sector allocated to Germany shall be EUR 2 188 000 per financial year.
4. The Union financial assistance for types of intervention in the olive oil and table olives sector, per financial year, is allocated as follows:
(a)
EUR 10 666 000 for Greece;
(b)
EUR 554 000 for France; and
(c)
EUR 34 590 000 for Italy.
5. The Member States concerned may decide in their CAP Strategic Plans to transfer the total financial allocations referred to in paragraphs 3 and 4 to their allocations for direct payments. That decision may not be reviewed.
The Member States’ financial allocations transferred to allocations for direct payments shall no longer be available for the types of intervention referred to in paragraphs 3 and 4.
6. Member States may decide in their CAP Strategic Plans to use up to 3 % of their allocations for direct payments set out in Annex V, where relevant after deduction of the allocations for cotton set in Annex VIII, for types of intervention in other sectors referred to in Title III, Chapter III, Section 7.
Member States may decide to increase the percentage referred to in the first subparagraph up to 5 %. In that case, the amount corresponding to that increase shall be deducted from the maximum set in Article 96(1), (2) or (5) and shall no longer be available for allocation to coupled income support interventions referred to in Title III, Chapter II, Section 3, Subsection 1.
The amount corresponding to the percentage of Member States’ allocations for direct payments referred to in the first and second subparagraphs of this paragraph and used for types of intervention in other sectors for a certain financial year shall be considered to be Member States’ allocations per financial year for types of intervention in other sectors.
7. Member States may, in 2025, review their decisions referred to in paragraph 6 as part of a request for amendment of their CAP Strategic Plans made in accordance with Article 119.
8. The amounts set out in the approved CAP Strategic Plan resulting from the application of paragraphs 6 and 7 shall be binding in the Member State concerned.
Financial allocations for types of intervention for rural development
1. The total amount of Union support for types of intervention for rural development under this Regulation for the period from 1 January 2023 to 31 December 2027 shall be EUR 60 544 439 600 in current prices in accordance with the multiannual financial framework for the years 2021 to 2027 set out in Regulation (EU, Euratom) 2020/2093.
2. 0,25 % of the resources referred to in paragraph 1 shall be devoted to finance the activities of technical assistance on the initiative of the Commission referred to in Article 7 of Regulation (EU) 2021/2116, including the European CAP network referred to in Article 126(2) of this Regulation and the EIP referred to in Article 127 of this Regulation. Those activities may concern previous programming periods and subsequent CAP Strategic Plan periods.
3. The annual breakdown by Member State of the amounts referred to in paragraph 1, after deduction of the amount referred to in paragraph 2, is set out in Annex XI.
4. The Commission is empowered to adopt delegated acts in accordance with Article 152 amending Annex XI to review the annual breakdown by Member State to take account of relevant developments, including the transfers referred to in Articles 17 and 103, to make technical adjustments without changing the overall allocations, or to take account of any other change provided for by a legislative act after the adoption of this Regulation.
EAFRD contribution
The Commission implementing decision approving a CAP Strategic Plan pursuant to Article 118(6) shall set the maximum contribution from the EAFRD to the plan. The EAFRD contribution shall be calculated on the basis of the amount of eligible public expenditure, excluding additional national financing referred to in Article 115(5).
EAFRD contribution rates
1. The CAP Strategic Plans shall establish, at regional or national level, a single EAFRD contribution rate applicable to all interventions.
2. By way of derogation from paragraph 1, the maximum EAFRD contribution rate shall be:
(a)
85 % of the eligible public expenditure in less developed regions;
(b)
80 % of the eligible public expenditure in the outermost regions and in the smaller Aegean islands;
(c)
60 % of the eligible public expenditure in transition regions within the meaning of Article 108(2), first subparagraph, point (b), of Regulation (EU) 2021/1060;
(d)
43 % of the eligible public expenditure in the other regions.
3. By way of derogation from paragraphs 1 and 2, the maximum EAFRD contribution rate shall, if the rate set in the CAP Strategic Plan in accordance with paragraph 2 is lower, be:
(a)
65 % of the eligible public expenditure for payments for natural or other area-specific constraints under Article 71;
(b)
80 % of the eligible public expenditure for payments under Article 70, for payments under Article 72, for support for non-productive investments referred to in Article 73, for support for the projects of the EIP operational groups under Article 77(1), point (a), and for LEADER under Article 77(1), point (b);
(c)
100 % of the eligible public expenditure for operations receiving funding from funds transferred to the EAFRD in accordance with Articles 17 and 103.
4. The minimum EAFRD contribution rate shall be 20 % of the eligible public expenditure.
5. The eligible public expenditure referred to in paragraphs 2, 3 and 4 shall exclude the additional national financing referred to in Article 115(5).
Minimum financial allocations for LEADER
1. At least 5 % of the total EAFRD contribution to the CAP Strategic Plan set out in Annex XI shall be reserved for LEADER.
2. For the entire period of the CAP Strategic Plan, the total EAFRD expenditure for rural development other than for LEADER as established in the financial plan in accordance with Article 112(2), point (a), shall not exceed 95 % of the total EAFRD contribution to the CAP Strategic Plan set out in Annex XI. That financial ceiling, once approved by the Commission in accordance with Article 118 or Article 119, shall constitute a financial ceiling set by Union law.
Minimum financial allocations for interventions addressing environmental and climate-related specific objectives
1. At least 35 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI shall be reserved for the interventions addressing the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i).
2. For the purpose of determining the contribution towards the percentage set out in paragraph 1, Member States shall include expenditure for the following interventions:
(a)
100 % for management commitments referred to in Article 70;
(b)
50 % for natural or other area-specific constraints referred to in Article 71;
(c)
100 % for area-specific disadvantages referred to in Article 72;
(d)
100 % for investments under Articles 73 and 74 linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i).
3. For the entire period of the CAP Strategic Plan, the total EAFRD expenditure for rural development other than for the interventions referred to in paragraph 2 of this Article, as established in the financial plan in accordance with Article 112(2), point (a), shall not exceed 65 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI. That financial ceiling, once approved by the Commission in accordance with Article 118 or Article 119, shall constitute a financial ceiling set by Union law.
4. This Article shall not apply to expenditure for the outermost regions.
Maximum financial allocations for technical assistance
1. A maximum of 4 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI may be used to finance the actions of technical assistance at the initiative of the Member States referred to in Article 125.
The EAFRD contribution may be increased to 6 % for CAP Strategic Plans where the total amount of Union support for rural development is up to EUR 1,1 billion.
2. Technical assistance shall be reimbursed as a flat-rate financing in accordance with Article 125(1), point (e), of the Financial Regulation in the framework of interim payments pursuant to Article 32 of Regulation (EU) 2021/2116. That flat rate shall represent the percentage set in the CAP Strategic Plan for technical assistance of the total expenditure declared.
Minimum financial allocations for support for young farmers
1. For each Member State the minimum amount set out in Annex XII shall be reserved for contributing to the achievement of the specific objective set out in Article 6(1), point (g). On the basis of the analysis of the situation in terms of strengths, weaknesses, opportunities and threats (‘the SWOT analysis’) and the identification of the needs that are to be addressed, the amount shall be used for either or both of the following types of intervention:
(a)
the complementary income support for young farmers laid down in Article 30;
(b)
the setting-up of young farmers referred to in Article 75(2), point (a).
2. In addition to the types of intervention referred to in paragraph 1 of this Article, Member States may use the minimum amount referred to in that paragraph for investment interventions for young farmers referred to in Article 73, provided that a higher support rate in accordance with Article 73(4), second subparagraph, point (a)(ii), is applied. When that possibility is used, a maximum of 50 % of the expenditure for investments referred to in the first sentence shall be counted against the minimum amount to be reserved.
3. For each calendar year, the total expenditure for types of intervention in the form of direct payments other than the complementary income support for young farmers laid down in Article 30 shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by the part of Annex XII reserved under the complementary income support for young farmers for the relevant calendar year, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.
4. For the entire period of the CAP plan, the total EAFRD expenditure for rural development other than for the setting-up of young farmers referred to in Article 75(2), point (a), shall not exceed the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI, reduced by the part of Annex XII reserved for the setting-up of young farmers referred to in Article 75(2), point (a), for the entire CAP Strategic Plan period, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.
5. Where a Member State decides to use the possibility provided for in paragraph 2 of this Article, the share of expenditure for investment interventions for young farmers with a higher support rate in accordance with Article 73(4), second subparagraph, point (a)(ii), not exceeding 50 % as established by that Member State in its financial plan in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119, shall be counted for the establishment of the financial ceiling referred to in paragraph 4 of this Article.
Maximum financial allocations for coupled income support
1. The indicative financial allocations for the coupled income support interventions referred to in Title III, Chapter II, Section 3, Subsection 1, shall be limited to a maximum of 13 % of the amounts set out in Annex IX.
2. By way of derogation from paragraph 1, Member States that, in accordance with Article 53(4) of Regulation (EU) No 1307/2013, used for the purpose of voluntary coupled support more than 13 % of their annual national ceiling set out in Annex II to that Regulation may decide to use for the purpose of coupled income support more than 13 % of the amount set out in Annex IX to this Regulation. The resulting percentage shall not exceed the percentage approved by the Commission for voluntary coupled support in respect of claim year 2018.
3. The percentage referred to in paragraph 1 may be increased by a maximum of 2 percentage points, provided that the amount corresponding to the percentage exceeding the 13 % is allocated to the support for protein crops under Title III, Chapter II, Section 3, Subsection 1.
4. The amount included in the approved CAP Strategic Plan resulting from the application of paragraphs 1, 2 and 3 may not be exceeded.
5. By way of derogation from paragraphs 1 and 2, Member States may choose to use up to EUR 3 million per year for financing coupled income support.
6. Without prejudice to Article 17 of Regulation (EU) 2021/2116, the maximum amount which may be granted in a Member State before the application of Article 17 of this Regulation pursuant Title III, Chapter II, Section 3, Subsection 1, of this Regulation in respect of a calendar year shall not exceed the amounts fixed in the CAP Strategic Plan in accordance with this Article.
Minimum financial allocations for eco-schemes
1. At least 25 % of the allocations set out in Annex IX shall be reserved for every calendar year from 2023 to 2027 for eco-schemes referred to in Title III, Chapter II, Section 2, Subsection 4.
2. Where the amount of the total EAFRD contribution reserved by a Member State for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), exceeds 30 % of the total EAFRD contribution as set out in Annex XI for the CAP Strategic Plan period, Member States may reduce the sum of the amounts to be reserved under paragraph 1 of this Article. The total reduction shall not be higher than the amount by which the percentage referred to in the first sentence is exceeded.
3. The reduction referred to in paragraph 2 may not lead to a reduction of the annual amount to be reserved for eco-schemes for the CAP Strategic Plan period pursuant to paragraph 1 by more than 50 %.
4. By way of derogation from paragraph 3, Member States may reduce the annual amount to be reserved pursuant to paragraph 1 by up to 75 % if the total amount planned for interventions under Article 70 over the CAP Strategic Plan period amounts to more than 150 % of the sum of the amounts to be reserved pursuant to paragraph 1 of this Article before application of paragraph 2.
5. Member States may, in calendar years 2023 and 2024, in accordance with Article 101(3), use amounts reserved in accordance with this Article for eco-schemes to finance in that year other interventions referred to in Title III, Chapter II, Section 2, provided that all possibilities to use the funds for eco-schemes have been exhausted,
(a)
up to a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned;
(b)
above a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned, provided that the conditions of paragraph 6 are complied with.
6. When applying paragraph 5, point (b), Member States shall amend their CAP Strategic Plans in accordance with Article 119 in order to:
(a)
increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article; or
(b)
increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.
7. If a Member State, when applying paragraph 5, point (a), uses for the total period 2023 to 2024 an amount exceeding 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024 to finance other interventions referred to in Title III, Chapter II, Section 2, it shall compensate for the amounts exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024 and used to finance in those years other interventions referred to in Title III, Chapter II, Section 2, by amending its CAP Strategic Plan in accordance with Article 119 in order to:
(a)
increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amounts exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024; or
(b)
increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.
8. Member States may, in calendar years 2025 and 2026, in accordance with Article 101(3), use an amount up to a threshold corresponding to 2 % of the amounts set out in Annex IX for the calendar year concerned, and reserved in accordance with this Article for eco-schemes to finance within the same year other interventions referred to in Title III, Chapter II, Section 2, provided that all possibilities to use the funds for eco-schemes have been exhausted and the conditions of paragraph 9 are complied with.
9. When applying paragraph 8, Member States shall amend their CAP Strategic Plans in accordance with Article 119 in order to:
(a)
increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8; or
(b)
increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8 of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.
10. For each calendar year as from calendar year 2025, the total expenditure for types of intervention in the form of direct payments other than eco-schemes shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by an amount corresponding to 23 % of the amount in Annex IX reserved for eco-schemes in accordance with this paragraph for calendar years 2025 and 2026, and corresponding to 25 % of the amount in Annex IX reserved for eco-schemes in accordance with this paragraph for calendar year 2027, where relevant corrected by the amount resulting from the application of paragraphs 2, 3, 4, 6, 7 and 9 of this Article, and as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.
11. If Member States apply paragraphs 2, 3, 4, 6, 7 and 9 of this Article for the entire CAP Strategic Plan period, the total EAFRD expenditure for rural development other than the amounts reserved for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), shall not exceed the total EAFRD contribution for rural development for the entire CAP Strategic Plan period as set out in Annex XI, reduced by the amounts reserved for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), following the application of paragraphs 2, 6, 7 and 9 of this Article, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.
Minimum financial allocations for the redistributive income support
1. At least 10 % of the allocations set out in Annex IX shall be reserved annually for the redistributive income support referred to in Article 29.
2. For each calendar year, the total expenditure for types of intervention in the form of direct payments other than the redistributive income support shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by an amount corresponding to 10 % of the financial allocation for direct payments for the relevant calendar year as laid down in Annex IX, where relevant corrected following the application of Article 29(1), second subparagraph, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.
Voluntary contribution from the EAFRD allocation to actions under LIFE and Erasmus+
Member States may decide in their CAP Strategic Plans to use a certain share of the EAFRD allocation to leverage support and upscale integrated Strategic Nature Projects benefitting farmers’ communities as provided for under Regulation (EU) 2021/783 and to finance actions in respect of transnational learning mobility of people in the field of agricultural and rural development with a focus on young farmers and women in rural areas, in accordance with Regulation (EU) 2021/817 of the European Parliament and of the Council ( 49 ) .
Tracking climate expenditure
1. On the basis of the information provided by Member States, the Commission shall evaluate the contribution of the policy to achieving the climate change objectives using a simple and common methodology.
2. The contribution to achieving the expenditure target shall be estimated through the application of specific weightings differentiated on the basis of whether the support makes a significant or a moderate contribution towards achieving climate change objectives. Those weightings shall be as follows:
(a)
40 % for the expenditure under the basic income support and the complementary income support referred to in Title III, Chapter II, Section 2, Subsections 2 and 3;
(b)
100 % for expenditure under the eco-schemes referred to in Title III, Chapter II, Section 2, Subsection 4;
(c)
100 % for expenditure for the interventions referred to in Article 93(1) other than those referred to in point (d) of this paragraph;
(d)
40 % for expenditure for natural or other area-specific constraints referred to in Article 71.
3. The Commission is empowered to adopt delegated acts after 31 December 2025 in accordance with Article 152 amending paragraph 2 of this Article to modify the weightings referred to therein where such modification is warranted for more precise tracking of expenditure on environmental and climate-related objectives.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.