Agricultural subsidies for 2014 and 2015 in Slovakia under the new Common Agricultural Policy (CAP)

Table: expected payments per ha or unit for 2014 and 2015 Source: Slovak Ministry of Agriculture

Table: expected payments per ha or unit for 2014 and 2015
Source: Slovak Ministry of Agriculture


 

CAP reform

The get a more green and modern system for agricultural subsidies in the EU, the European Commission has made a reformed CAP system for the new period 2014 – 2020. The most important reforms focusses on: changes to the direct payments to support farmers, ending quotas and other forms of market support and emphasising environmental measures. For farmers, changes to the direct payment will have the largest influence, as they directly influence the farmer’s finances. Some of these changes, that also affect Slovakia, are highlighted here:

  • Differences in the average payment per hectare between EU Member States will gradually decrease. “underpaid” Member States (new EU member states such as Slovakia) will get more, “overpaid” Member States (old EU member states) will get less.
  • By 2019 every Member State will reach a minimum level.
  • Single Area Payments (SAP), a flat rate payment per hectare, for the EU 12 Member States (these are the new EU Member States, including Slovakia and Czech Republic) will remain until 2020.
  • Starting in 2015, in addition to the SAP, farmers will receive an extra fixed payment per hectare based on agricultural activities that are beneficial for the environment and the climate (so called Greening payment). These activities should focus on maintaining grassland, crop diversification (at least 2 different crops for arable land exceeding 10 hectares and 3 different crops for arable lands exceeding 30 ha) and keeping 5% of the arable lands as “ecological focus area” (bushes, trees, hedges, etc.)
  • Within a Member State, differences in payment per hectare should be more equal among farmers. This means that those receiving more than the national average will see downward adjustments, those receiving less should get more to reach at least 60% of the national average.
  • Farms receiving over € 150,000 of subsidies will see reductions of at least 5% for the amounts over € 150,000. Member States can also cap the maximum amount a farm receives to € 300,000 (after reduction of salary costs).
  • To encourage new generations of farmers, young farmers (under 40 years of age) will be able to receive extra subsidies for a period of 5 years. This could include a fixed annual (up to € 1250) payment, regardless of the farm size.
  • Other support under the new CAP will include start-up grants (up to € 70,000) for young farmers, business start-up aid (up to € 15,000) for small farms and farm restructuring. These payments can differ per member state.

Source: Slovak Ministry of Agriculture

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