CAP 2023: The Austrian way is secured

In future more money shall be invested in environment and climate protection. The agreement of today was preceded by months of intensive negotiations, which had to be interrupted several times without any results. In the EU budget 2021-2027 around 31 percent are available for agricultural policy, which corresponds to almost 378.5 billion euros. “This gives our farmers the security of planning that they need so urgently. We have also ensured that the funds for Austria from Brussels are not getting less, but more.” Köstinger is pleased. “In this way we will also be able to further develop Austria’s positon as the ‘Delicacies shop of Europe` in future.” says the Minister for Agriculture. 

The Austrian way is secured

Rural development has been secured in the Second Pillar and the related successful programmes such as the Agri-environmental Programme, compensatory allowances, organic programmes and animal welfare programmes.

More money is also available for climate and environmental protection, 25 percent are channelled into organic schemes. The earmarking provides for more than 72 billion euros for climate and environmental services in the First Pillar. Moreover, important environmental and climate services of rural development are recognised within the framework of the organic schemes in the Second Pillar.

With the Agri-environmental Programme Austria has been a pioneer in the whole European Union for years. 80 percent of the domestic farmers participate in this Agri-environmental Programme. Due to its role as a pioneer Austria was also able to set important impulses within the framework of the negotiations and enforce increased consideration of the Second Pillar as far as the environmental ambition is concerned.

The basic payments on Alpine areas can be differentiated in the same way as before; thus, the adjusted model for the support of small-scaled agriculture can be continued.

Austria’s position has succeeded

 Already existing conditionalities with environmental requirements in the First Pillar will be extended. With respect to the distribution of direct payments an agreement on a mandatory redistribution payment amounting to ten percent could be reached. As far as the social dimension is concerned, an agreement on a feasible compromise has been reached.  Sanctions and/or reductions of the CAP payments are exclusively carried out on the basis of judgements and/or official notices of the courts and authorities competent for labour law.

As regards the “Good Agricultural and Environmental Condition” (GAEC 8 and 9 standards) Austria could enforce an important demand. This demand concerns crop rotation and/or crop diversification and the non-productive areas in arable farming. Holdings with an arable area of up to 10 ha are exempted from these standards and freed from more bureaucracy regarding this point.

“It was really high time for this agreement. This CAP reform is needed in order to make agriculture fit for the future and climate-fit. Austria has been exemplifying for decades how small-scaled family farms are successful on the domestic and international markets. It is not by chance that we are organic champions!” emphasises Federal Minister of Agriculture, Elisabeth Köstinger.

What will happen next?

• With the political agreement at European level the prerequisites for the finalisation of the national CAP Strategic Plan by the end of 2021 have been established.
• However, at EU level a formal adoption in the plenary round of the European Parliament is still required. This will presumably take place in September/October 2021.
• In this way, it should be possible that Austria can submit its CAP Strategic Plan to the European Commission as planned by the end of the year 2021.

The European Commission will approve the strategic plans submitted by the Member States in the course of the year 2022. The implementation will take place from 1 January 2023 onwards.