Financing the CAP - Infopage

Indicator: CAP expenditure as % of EU expenditure (%)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• ABAC is the Accrual-Based Accounting System. It is a transversal, transactional information system allowing for the execution and monitoring of all budgetary and accounting operations by the Commission.
• This indicator provides the expenditure data by financial year.

Indicator: Direct payment expenditure (million EURO)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• The indicator provides the total expenditure on direct payments by claim year (where claim year N corresponds to financial year N+1).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.

Indicator: Rural development expenditure (EU funds)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• The indicator provides the total expenditure on rural development measures by claim year (where claim year N corresponds to financial year N+1).
• Rural development measures are co-financed by Member States, but the expenditure only reports on the amount of the EU funds under the European Agricultural Fund for Rural Development (EAFRD).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.

Indicator: Market measures expenditure (million EURO)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• The expenditure data is presented by claim year (where claim year N corresponds to financial year N+1).
• The data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.
• For market-related expenditure, there is no overall indicative breakdown of CAP support by Member State, as it depends on the type of measures that are implemented which can differ from year to year.

Graph: CAP expenditure and CAP reform path (billion EURO)

Indicator(s) used in the graph:

Mapping with legend(s) in the graph:

Notes:

• ABAC is the Accrual-Based Accounting System. It is a transversal, transactional information system allowing for the execution and monitoring of all budgetary and accounting operations by the Commission.
• AGREX is the Information System for Agriculture Refund Expenditure.
• The expenditure in this graph is by financial year.
• This graph shows the evolution of expenditure of the Common Agricultural Policy (CAP) in line with policy change.
• In the 80s, CAP spending was mainly on price support through market mechanisms (intervention and export subsidies) which rose by the end of the decade due to agricultural surpluses.
• Due to the 1992 CAP reform, market price support was reduced and replaced by producer support in the form of direct payments. Spending on rural development measures also increased.
• Agenda 2000 continued the reform process. Rural development policy was introduced as a second pillar.
• With the 2003 reform, most direct payments were decoupled from current production as they were based on the farmer's historical receipts. Rural development expenditure continued to increase.
• The 2008 Health Check continued on the path of CAP reform, further reducing market support.
• The 2013 reform maintained the market oriented reform path, while reinforcing the link of decoupled direct support to environmental and climate measures through a new greening scheme.
• CAP expenditure has been stabilized and despite successive enlargements, overall CAP spending as a share of GDP has actually decreased from 0.66% in the 90s to 0.35% in 2018 (EU28).
• The number of Member States expanded over time:
• 1952 - 1972 EU-6 : BE, FR, DE, IT, LU, NL.
• 1973 - 1980 EU-9 : + DK, IE, UK
• 1981 - 1985 EU-10 : + EL
• 1986 - 1994 EU-12 : + PT, ES
• 1995 - 2003 EU-15 : + AT, FI, SE
• 2004 - 2006 EU-25 : + CY, CZ, EE, HU, LV, LT, MT, PL, SK, SI
• 2007 - 2013 EU-27 : + BG, RO
• 2013 - 2019 EU-28 : + HR
• > 2020 EU-27: - UK
• The EU aggregate for years prior to 2006 is based on a dataset that includes the UK.

Graph: Distribution of CAP expenditure by Member State (%)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• The Declarations of expenditure for European agricultural fund (DOE) are quarterly notifications of Member States expenditure.
• AGREX is the Information System for Agriculture Refund Expenditure.
• The total expenditure for the different indicators is by claim year (where claim year N corresponds to financial year N+1).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.

Graph: Distribution of direct payment expenditure by scheme (Euro and %)

Indicator(s) used in the graph:

Notes:

• AGREX is the Information System for Agriculture Refund Expenditure.
• The total expenditure for the different indicators is by claim year (where claim year N corresponds to financial year N+1).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.
• The Small farmers scheme (SFS) is financed from other direct payment schemes (BPS/SAPS, greening, redistributive payment, young farmer payment, payment for areas with natural constraints and voluntary coupled support), by deducting from those schemes the amounts to which the farmers participating in the scheme would have been entitled if they had not participated in the SFS.

Graph: Distribution of rural development expenditure by priority area (Euro and %)

Indicator(s) used in the graph:

Notes:

• The Declarations of expenditure for European agricultural fund (DOE) are quarterly notifications of Member States expenditure.
• The total expenditure for the different indicators is by claim year (where claim year N corresponds to financial year N+1).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.
• Differences can be observed between annual and cumulative data, as some measures (for example investments) require more time to be adopted and paid.
• The different priority areas in the rural development programmes are:
• Priority 1: Knowledge transfer and innovation in agriculture, forestry and rural areas (no financial allocation shown for Priority 1 as the expenditure is distributed across other focus areas).
• Priority 2: Farm viability, competitiveness and sustainable forest management
• Priority 3: Food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management
• Priority 4: Restoring, preserving and enhancing ecosystems in agriculture and forestry
• Priority 5: Resource efficiency and shift to low carbon and climate resilience economy in agriculture, food and forestry sectors
• Priority 6: Social inclusion, poverty reduction and economic development in rural areas
• Member States can also use part of the rural development funds for measure 20: technical assistance. Technical assistance is not shown in the graph, as it does not belong to any priority area.

Graph: Distribution of market expenditure (Euro and %)

Indicator(s) used in the graph:

Notes:

• CATS/COMBO is the information system through which Member States provide information for external audits of the CAP.
• The total expenditure for the different indicators is by claim year (where claim year N corresponds to financial year N+1).
• The expenditure data can be displayed for each year separately (annual), or as the sum of different years (cumulative), where 2017 data covers the expenditure over 2015, 2016 and 2017.
• For market-related expenditure, there is no overall indicative breakdown of CAP support by Member State, as it depends on the type of measures that are implemented which can differ from year to year. Therefore, it is interesting to look at the data cumulatively to see the amount of support over multiple years for market expenditure as well.
• POSEI is a specific agricultural scheme aiming at taking into account the constraints of the Outermost Regions as required by Article 349 TFEU. It consists of two main elements: the specific supply arrangements and the measures to support local production. The former aims at mitigating additional costs for supplying essential products resulting from the remoteness of these regions (through aid for products from the EU and exemption from import duties for products from third countries) and the latter at assisting the development of the local agriculture sector (direct payments and market measures). POSEI also allows the financing of plant-health programmes. The financial allocations (per year) for the POSEI programme amount to €268.42 million for Spain, €278.41 million for France and €106.21 million for Portugal.
• Information provision and promotion measures concerning agricultural products and certain food products based on agricultural products implemented in the internal market or in third countries may be financed, fully or in part, by the Community budget subject to the conditions laid down in Regulation 1308/2013.