EU Agricultural Policy (CAP): 1st Pillar
Since the 1950s, with the establishment of the European Economic Community (EEC), the EU has had a Common Agricultural Policy (CAP). Since the 1990s, the CAP has been structured around two pillars: the so-called first pillar focuses on direct income support for farmers, while the so-called second pillar promotes rural development and funds climate and agri-environmental measures.
During the funding period that concluded in 2022, and even more so in the upcoming period from 2023 to 2027, there has been a stronger focus on promoting sustainable practices. This shift is primarily driven by reallocating funds from the first pillar to the second. In the new funding cycle starting in 2023, the existing requirements from previous programs like "Cross Compliance" and "Greening" will continue under the term "Conditionalities" and will be expanded with additional environmental protection measures. These conditionalities currently include nine obligations related to climate protection, water, soil, and biodiversity.
Moreover, 30% of the funds from the first pillar will be allocated directly to voluntary "eco-schemes," which provide payments for various services aimed at extensive farming and supporting biodiversity.
In Germany, the first pillar provides a standard income support payment of €157 per cultivated hectare. Additionally, payments are available for young farmers, as well as redistribution payments for the initial hectares farmed. Alongside the eco-schemes, new “coupled payments” have also been introduced, offering support per mother sheep or cow, similar to programs from the 1980s and 1990s.
All first-pillar funding comes solely from the EU budget, while the second-pillar financing in Germany is financed through a mix of EU, federal, and state contributions.
Notably, for the first time, there will be no separate second-pillar programs for individual federal states. Instead, a unified strategic plan has been implemented for the entire Federal Republic, while still including specific regulations for individual states.
Photo Gallery
Further Reading
Overview of the new CAP and current strategy plan (Federal Ministry of Agriculture):
Green Architecture of the New CAP (Commentary from BÖLW):
Eco-Schemes (Concept by the German Environment Agency):
Criticism of the New CAP:
- BUND: Critique of the New CAP
- NABU Blog: Grassland Protection in the New CAP
- Wochenblatt: New Eco-Schemes - A Threat to Agri-Environmental Programs
- AGE Interview: CAP Reform - Agricultural Policy is Not Social Policy