Common Agricultural Policy 2014-2020: Direct payments - A reference note

Análisis en profundidad 20-12-2016

This document aims to explain the principles and rules of the direct payments system in the context of the Common Agricultural Policy (CAP) for 2014-2020. Indeed, direct payments are the backbone of the CAP and they take the largest share of the CAP budget, more than 70 % of the €408.31 billion budget or about €42 billion each year. In Europe, more than 7.3 million farmers are beneficiaries of direct payments, and they manage more than 170 million hectares of agricultural land. In terms of farm income, direct payments represent, at the EU level, more than 25 % of the gross value added of EU agriculture and in some Member States more than 50 %.