Second phase of Common Agricultural Policy payments supports environmental programs and rural development.
On June 26th, Austria’s Agricultural Market Austria (AMA) disbursed 310 million euros to farmers across the country as part of the second installment of payments under the Common Agricultural Policy (CAP).
This disbursement includes payments for area-based and animal-based CAP interventions for the Agricultural Environment Program ÖPUL, area payments, and additional payments for direct payments for the application year 2023. Additionally, payments are allocated for basic services and village renewal, quality regulations for agricultural products and food, as well as individual farm investments, LEADER, and other project measures.
The total disbursement of 310 million euros includes payments for:
- Agricultural Environment Program (ÖPUL),
- Area Payments (AZ),
- Direct Payments,
- Project-specific CAP payments,
- Forestry Fund, and
- Second stage of electricity cost subsidies for agriculture.
These payments are based on the Austrian CAP Strategic Plan 2023-2027 implemented in cooperation with the EU Commission, alongside adjustments made through the Agricultural Impulse Program.
“To sustainably secure our food supply, cultural landscape, rural regions, and natural environments, it is essential to financially compensate the comprehensive additional services provided by our farmers,” stated Minister of Agriculture Norbert Totschnig. “With the timely disbursement of the second installment, we honor the voluntary environmental efforts in the Agricultural Environment Program, alleviate the farming challenges in disadvantaged areas through area payments, and establish an economic foundation for farms through direct payments.”
Additional performance compensation from 2024 onwards through the implementation of the Agricultural Impulse Program Since the beginning of the year, the Agricultural Impulse Program has been implemented jointly with the federal states. From 2024 to 2027, an additional 360 million euros will be available for the Agricultural Environment Program, support for mountainous and disadvantaged areas, and investment incentives. This increase will raise performance compensations in the ÖPUL environmental program and for disadvantaged areas by 8 percent. Furthermore, the maximum eligible costs for investments in animal welfare, climate, and water management will be raised to 500,000 euros. Additionally, there will be a top-up for mountain farmers facing significant challenges.
Totschnig emphasized, “Austrian farmers face numerous challenges, including rising operating costs, inflation, volatile market prices, and extreme weather conditions. Through the implementation of the Agricultural Impulse Program, we are making significant adjustments to performance compensations to adapt to these new circumstances and enable farms to continue participating.”
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