Common EU Agricultural Policy (CAP): Support for Rural Development (2nd Pillar)
In addition to income from product sales and single farm payments under the first pillar of the EU’s Common Agricultural Policy (CAP), the second pillar of the CAP offers further income support for farmers. This second pillar focuses on "support for rural development," which is financed through the European Agricultural Fund for Rural Development (EAFRD). The second pillar is divided into various funding programs, with the most significant being support for organic farming, agri-environmental and climate measures (AECM), and compensatory allowances for disadvantaged areas. Smaller programs, such as LEADER and village renewal initiatives, complement this portfolio.
The core objectives of the funding instruments within the second pillar include:
- Enhancing the competitiveness of all types of agriculture
- Facilitating knowledge transfer
- Organizing the food supply chain
- Restoring, preserving, and improving ecosystems
- Promoting resource efficiency and transitioning to climate-resilient economies
- Supporting social inclusion, economic development, and poverty alleviation
The measures in the second pillar, particularly the agri-environment and climate initiatives, are currently the most vital tools for supporting biodiversity integration, meeting nature conservation requirements in agriculture, and achieving environmental objectives.
Since 2023, each member state has a so-called strategic plan that outlines the various rules specific to its regions. In addition to the content of the measures, the amount and distribution of funding across different initiatives are crucial for efficiency and the successful achievement of nature conservation and environmental protection goals.
The differences in the structure and funding of agri-environmental measures are illustrated through a comparison of programs focused on grassland and arable land management in Thuringia and Bavaria. This includes an explanation of the key measures and their implementation in both regions. Additionally, it will cover biodiversity consulting, investment and project funding for nature conservation, and newer cooperative approaches to regional agri-environmental protection.
Since 2023, eco-schemes have also been introduced as a new instrument, promoting sustainable and environmentally friendly practices for the first time within the first pillar of EU agricultural policy. These eco-schemes aim to significantly contribute to the EU's environmental goals as part of the “Green Deal” initiative.
Photo Gallery
Further Reading
Overview of the new CAP and current strategic plan (Federal Ministry of Agriculture):
Green Architecture of the New CAP (Commentary from BÖLW):
Eco Schemes (Concept from the Federal Environment Agency):
Common Good Premium (DVL Concept for Effective Eco Schemes):
Criticism of the New CAP: