Compensatory allowance 2024 - 2027
In Austria, around 70 % of the national territory is delimited as less-favoured area, most of which is in the mountain region due to the topography.
Payments for holdings in mountain areas and other areas facing natural or other specific constraints are granted annually per hectare of agricultural area in order to compensate farmers for all or part of the additional costs and income foregone related to the constraints for agricultural production in the area concerned.
The three categories of areas are designated in accordance with Article 32 of Regulation (EU) No 1305/2013.
The aim of the compensatory allowance is to make an important contribution to maintaining area-wide and site-adapted land management in less-favoured areas by providing income compensation for their disadvantage compared to holdings in favourable locations. This preserves natural production bases, cultivated landscapes and biodiversity through site-adapted agricultural utilisation. For many of these holdings, the desired maintenance of farming operations would not be possible under the current economic conditions without public payments. Special support for agriculture in less-favoured areas therefore has a decades-long tradition in Austria. Implementation and calculation are regulated in a special national directive.