The Common Agricultural Policy
The Common Agricultural Policy (CAP) was created as a response to the growing number of challenges in agricultural production from which 22 million farmers and agricultural workers live in the EU. CAP strengthens the competitiveness and sustainability of agricultural production through the provision of direct payments, stabilization of agricultural holdings revenues and financing of projects through national (or regional) rural development programs. CAP also provides several market measures including tools that deal with the influence of price volatility and other market problems and the promotion of agricultural products.
The CAP budget for the period 2014-2020 amounts to EUR 408.31 billion, of which EUR 308.73 billion is intended for direct payments and market measures while the remaining EUR 99.58 billion is intended for the rural sector development.
Some information on the rural area of Croatia...
Croatia covers an area of 56 594 km², of which 79,1 % of the territory is considered as rural area. Of the total area, approximately 40 % relates to agricultural land while forests cover 36%. Croatia has 4.2 million inhabitants, of which about 2,4 million (or 56,1 %) live in predominantly rural areas. The Croatian agricultural sector is characterized by small farms - 50 % of farms are under 2 hectares, while the vast majority are less than 10 ha (89,4%).
In the period until 2020, the CAP will invest about 3,5 billion euros in the Croatian agricultural sector and rural areas. Certain key political priorities for the use of CAP funds are defined at the European level and refer to jobs and growth, sustainability, modernization, innovation and quality development.
The amount of Croatia's direct payments for the period 2014-2020 amounts to 1.48 billion euros. Furthermore, farmers in Croatia (as well as in the EU) are subject to so-called 'greening' rules designed to highlight the benefits that farmers achieve at the societal level - eg climate change, loss of biodiversity and soil quality. Under this system, 30% of direct payments (paid per hectare) are associated with three environmentally-friendly farming practices: diversification, maintenance of permanent grassland and 5 % of cultivable land are devoted to environmentally friendly measures.
The EU through this policy also supports producer organizations by helping farmers to better organize and market their products, strengthening their position in the EU food supply chain.
Future of Common Agricultural Policy
Legislative proposals for the future of the common agricultural policy are based on the 9 goals that include greater ambition for environmental and climate activities, better orientation and new ways of working.
CAP goals:
ensure fair income
increase competitiveness
rebalance power in food chain
climate change action
environmental care
preserve landscapes and biodiversity
support generational renewal
vibrant rural areas
protect food and health quality
