• 2.2.4

EAFRD

95,51 billion (including 8.07 from NGEU)

Actions for the stability, competitiveness and sustainability of the agricultural and rural sector

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DG / Responsible Agencies: AGRI | National and regional authorities

Structural funds - special features

The European Agricultural Fund for Rural Development (EAFRD) is part, along with the EAGF, of the European Union’s Common Agricultural Policy (CAP) implementation funds, which follow particular logics peculiar to this specific area of EU policies. The purpose of EAFRD is to finance rural development interventions, which is (along with income and market support measures, financed by EAGF) the third component of the CAP.

At the same time, EAFRD is also one of the Structural Funds (along with ERDF, ESF+, EMFF and Cohesion Fund; and unlike EAGF). The EAFRD involves similar modes of operation to the ERDF and ESF+: it is managed indirectly by member states (shared management), is co-financed by national budgets, and involves aspects of regional planning.

We therefore provide in this section , for completeness and consistency with what has been done for European programs, a discussion of the main features of EAFRD. We also provide a more specific discussion of the allocation of EAFRD funds in Italy in the section on Rural Funds.

It is worth mentioning that the Common Agricultural Policy (CAP) went through a reform phase in the 2021-2022 period. The “new CAP,” which has been in effect since 2023, provides for, among other things, the development of national CAP strategic plans (explanation and details below), aimed at giving coherence to what is financed by EAGF, EAFRD and other European funds and programs. Rural development actions will therefore be included in the framework of the CAP national strategic plans.

Potential beneficiaries

Farmers, farms, producers and actors working (in different capacities) in agriculture and rural areas.

Description and objectives

The Common Agricultural Policy (CAP) is one of the main expenditure items in the EU budget. The EAFRD (European Agricultural Fund for Rural Development) is one of the Structural Funds, with the mission of financing rural development actions under the CAP. It complements the EAGF, which is instead the fund that finances the income and agricultural market support components of the CAP.

The CAP, carried out since 1962, is one of the most “historic” policies of the European Union. It pursues the following goals:

  • Support farmers and improve agricultural productivity by ensuring a stable supply of food at affordable prices;

  • Protect EU farmers so that they can have a reasonable standard of living;

  • Help address climate change and sustainable management of natural resources;

  • Preserve rural areas and landscapes throughout the EU;

  • Keeping the rural economy alive by promoting employment in agriculture, agribusiness and associated industries.

Despite the specific scope of action, EAFRD has a comparable (slightly lower) financial allocation to ESF+. As explained above, it has a dynamic of operation not too different from that of ERDF and ESF+. In fact, it provides for a CAP Strategic Program (SPP) and its regional declinations (Regional Rural Development Complements, or CSRs). It is co-financed by national budgets, similar to PR and NP. Through the EAFRD, the CAP pursues three main long-term goals:

  • Increase the competitiveness of the agricultural and forestry sector;

  • Ensure the sustainable management of natural resources and climate action;

  • Achieve balanced spatial development of rural economies and communities, including job creation and retention.

The CAP, and with it the EAFRD, has gone through a major reform process. For the biennium 2021-2022, a transitional regulation that extended rules already applied in the previous seven-year period 2014-2020. Starting in 2023, a New CAP (details at the end of this chapter).

Types of actions and projects

Despite the ongoing changes in the structure of the CAP and its objectives, the transitional phase (2021-2022) and the final phase (2023-2027) of CAP and EAFRD implementation will touch on similar issues. We indicate below the current 6 priorities (with associated “focus areas” applicable in the transitional phase) and the 9 objectives of the new phase.

You can consult at the following links:

Transitional phase 2021-2022

6 priorities and “focus areas.”

    1. Knowledge transfer and innovation- (1.a) innovation, cooperation and development of knowledge base in rural areas; (1.b ) links between agriculture, food production and forestry and research and innovation; (1.c ) lifelong learning and vocational training in agriculture and forestry;

    2. Farm profitability and competitiveness- (2.a) economic performance of farms and farm restructuring and modernization; (2.b ) entry of suitably qualified farmers into the agricultural sector and generational turnover;

    3. Food chain organization and risk management– (3.a) competitiveness of primary producers and their integration into the food chain; (3.b ) prevention and management of farm risk;

    4. Ecosystem restoration, conservation and enhancement- (4.a) biodiversity restoration, conservation and enhancement; (4.b ) water management; (4.c ) soil management and erosion control;

    5. Resource-efficient and climate-resilient economy – (5.a) Water use efficiency in agriculture; (5.b ) Energy use efficiency in agriculture and food processing; (5.c ) supply and use of renewable energy sources; (5.d ) Reduction of greenhouse gas and ammonia emissions in agriculture; (5.e ) Conservation and carbon sequestration in agriculture and forestry;

    6. Social inclusion and economic development- (6.a ) diversification, creation and development of small businesses and jobs; (6.b) local development in rural areas; (6.c.) accessibility, use and quality of ICT in rural areas.

These priorities and “focus areas” intersect in national and regional planning with the following thematic measures: (1 ) Knowledge transfer and information actions; (2) Consulting, replacement and farm management services; (3) Quality schemes for agricultural and food products; (4) Investment in tangible fixed assets; (5) Restoration of agricultural production potential damaged by natural disasters and introduction of appropriate preventive measures; (6) Farm and enterprise development; (7 ) Basic services and village renewal in rural areas; (8) Investment in forest area development and improvement of forest profitability; (9) Establishment of producer associations and organizations; (10) Agro-climatic-environmental payments; (11) Organic farming; (12) Natura 2000 allowances and allowances related to the Water Framework Directive; (13) Allowances for areas subject to natural or other specific constraints; (14) Animal welfare; (15 ) Silvo-environmental and climate services and forest conservation; (16) Cooperation; (17) Risk management; (19) LEADER local development support; (20) Technical Assistance; (21) Temporary exceptional crisis support COVID-19; more other measures (Early retirement, etc.).

Most of the funds are allocated on a regional basis, while a portion funds the National Rural Development Program (NRDP) and the National Rural Network (NRN).

We report below the EAFRD allocations by region for the two phases 2021-2022 and 2023-2027 (slight discrepancies are possible due to rounding). Data include national and community funding shares.

EAFRD Funds by Region (millions of euros) 2021-2022 2023-2027 Total (two phases)
Abruzzo

224,4

354,3

578,7
Basilicata

328,1

452,9

781,0
Calabria

545,4

781,3

1.326,7
Campania

844,0

1.149,6

1.993,6
Emilia-Romagna

562,1

913,2

1.475,3
Friuli-Venezia Giulia

146,1

227,6

373,7
Latium

388,8

602,6

991,4
Liguria

143,8

207,0

350,8
Lombardy

550,9

834,5

1.385,4
Brands

254,9

390,9

645,8
Molise

105,0

157,7

262,7
PA Bolzano

171,3

271,9

443,2
PA Trento

140,9

199,0

339,9
Piedmont

520,8

756,4

1.277,2
Apulia

816,4

1.184,9

2.001,3
Sardinia

618,0

819,5

1.437,5
Sicily

1.053,9

1.474,6

2.528,5
Tuscany

471,8

748,8

1.220,6
Umbria

367,2

518,6

885,8
Aosta Valley

62,5

91,9

154,4
Veneto

539,4

824,6

1.364,0
More

1.146,2

3.050,0

4.196,2
Total

10.002,0

16.011,7

26.013,7
Final phase 2023-2027

9 Objectives:

    1. Support sustainable agricultural income and resilience of the agricultural sector throughout the Union to improve long-term food security and agricultural diversity, and ensure the economic sustainability of agricultural production;

    2. Improve market orientation and increase the competitiveness of farms in both the short and long term, including an increased focus on research, technology and digitization;

    3. Improve the position of farmers in the value chain;

    4. Contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as promoting sustainable energy;

    5. Promote sustainable development and efficient management of natural resources such as water, soil and air, including reducing chemical dependence;

    6. Help halt and reverse biodiversity loss, improve ecosystem services, and preserve habitats and landscapes;

    7. Attract and support young and new farmers and facilitate sustainable entrepreneurial development in rural areas;

    8. Promote employment, growth and gender equality, including female entrepreneurship in agriculture, social inclusion and local development in rural areas, including circular bioeconomy and sustainable forestry;

    9. Improving EU agriculture’s response to society’s food and health needs, including high-quality, safe, nutritious food produced in a sustainable manner, reduction of food waste, as well as improving animal welfare and combating antimicrobial resistance.

Highlights

As mentioned earlier, the new Rural Development Plans (RDPs), consistent with the “new CAP,” came into effect from 2023. The main new features of the “new CAP” are:

  • The focus on nine key objectives : ensuring sufficient agricultural income, increasing competitiveness, improving farmers’ position in the value chain, taking action to combat climate change, protecting the environment with sustainable use of soil, water and air, preserving landscape and biodiversity, supporting generational change, developing dynamic rural areas, and protecting food quality and health;

  • Development of CAP national strategic plans. , to integrate income support measures, market measures and rural development into a single strategic vision (in line with the above nine objectives and the typicalities and needs of each country). These plans will also enable greater consistency with the European Green Deal, the European strategy for biodiversity and the “ Farm to Fork “;

  • The pursuit of more coherent “green” and “social” engagement within the Common Agricultural Policy, in strategic and operational terms (e.g., in application of the EAGF subsidy scheme);

  • A greater focus on the competitiveness of the agricultural sector, the position of farmers in the value chain and in the market, and the market competitiveness of the agricultural sector.