Regulation (EU) 2020/872

What it is

to provide exceptional temporary support to farmers and rural businesses under the European Agricultural Fund for Rural Development (EAFRD) in response to the COVID-19 pandemic. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure on an equal footing with the Council. BACKGROUND: the consequences of the crisis caused by the COVID-19 pandemic for farmers and rural businesses are unprecedented. Mandatory closures of shops, outdoor markets, restaurants and other similar establishments have led to economic disruption to the agricultural sector and rural communities and led to liquidity and cash-flow problems for farmers and small rural businesses active in processing, marketing and/or development of agricultural products. The European Parliament adopted a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards specific measures to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the COVID-19 pandemic. The proposal aims to provide exceptional and temporary support to farmers and rural businesses under the European Agricultural Fund for Rural Development (EAFRD) in response to the COVID-19 pandemic. These temporary measures shall enable Member States to use the funds available under their existing rural development programmes to support farmers and small and medium-sized enterprises (SMEs) particularly affected by the crisis. The European Parliament's position adopted at first reading under the ordinary legislative procedure amended the Commission proposal. Under the amended text, support shall take the form of a lump sum payment to be paid no later than 30 June 2021, on the basis of applications for support approved by the competent authority no later than 31 December 2020. Parliament also voted in favour of an increase in support: the maximum amount of support shall not exceed EUR 7 000 per farmer (compared to EUR 5 000 in the original proposal) and EUR 50 000 per SME. Lastly, the amount granted under support measures shall not exceed 2% of the total EAFRD contribution to the rural development programme (compared to 1% in the original proposal).

Frequently asked

In scope for these industries