The direct payment architecture from 2015
After a preparatory period of almost five years the new CAP entered into force on 1 January 2015.
With this reform, direct payments (DP) are more strongly oriented towards specific actions, areas and beneficiaries.
The objective of the CAP 2020 is to harmonise both national support levels and the support levels of the individual EU Member States. As any other EU country Austria therefore has to transform the existing payment scheme for Pillar 1 direct payments into a so-called ‘regional model’. Originally, the EU Commission had planned a radical cutback in this area, which would have had adverse financial impacts on our farmers. This measure was prevented, which ensures a soft transition to the new system.
In future, payment entitlements will only be allocated to “active farmers”; persons or groups of persons operating for example airports, railway services or waterworks will no receive agricultural funds.
As from the claim year 2015 restrictions concerning basic payments for large farms have been in place. In Austria this means that the maximum payment that will be granted to any one farmer under the Basic Payment Scheme is capped at € 150,000.00 (the value of any salaries paid is taken into account). The funds thus saved remain in the relevant EU Member State and are allocated to the Rural Development Programme (LE 14-20).
Implementation of the new architecture of direct payments in Austria
Due to the CAP the scheme so far applied has been transformed into a regional model in Austria: A basic payment is granted per eligible hectare. Farmers performing special environmental services and complying with the “greening requirements” obtain a greening premium in addition to this payment. Besides, special support may be granted to young farmers. Small farmers now profit from simplified funding requirements in the first pillar.
Under specific conditions coupled payments may still be granted in certain sectors.
As before, cross-compliance is the precondition for all these funding measures. As a minimum requirement for being granted a direct payment a farmer must, first, apply for a minimum eligible area of 1.5 hectares or EUR 150 coupled payment and, second, has to fulfil the baseline farming requirements on the farm area.