The European Union’ Common Agricultural Policy (CAP)
Strategic national and pan-European plans for CAP interventions
Description
The European Union applies different interventions under the Common Agricultural Policy 2023–2027 (CAP) in its efforts to make rural areas and agriculture more competitive and sustainable. Support for digitalization is just one of the cross-cutting objectives aimed at simplifying the delivery of the CAP, contributing to the achievement of the ten specific CAP 2023–2027 objectives. To promote the necessary investments in digital technologies, services and skills, the CAP Strategic plans of each of the 27 Member States include a tailored digital strategy detailing the specific needs and circumstances in each country. The aim in this regard is to create an appropriate environment in which farmers and rural communities can take advantage of digital technologies, including high-speed broadband infrastructure, information technologies, and digital tools and services. As a result, the productivity and income of farmers is increased, and living standards in rural communities are improved. The CAP plans of the Member States explain how they will make use of the available instruments, namely the Recovery and Resilience Facility (RRF), the Digital Europe Programme, the Horizon Europe Programme, the Connecting Europe Facility (CEF) and the European Regional Development Fund (ERDF), in their digitalization strategies in agriculture and rural areas, from which they can benefit in synergy with their national funds. The Common Agricultural Policy (CAP) of the European Union, established in 1962, is a unified policy that is applicable to all EU countries.
Technology
Digitalization under CAP 2023–2027 targets the modernization of agriculture and rural areas through the upgrading of electronic information systems, while encouraging knowledge sharing, innovation and investments into on-digital technologies. Overall, the CAP provides financial or technical assistance support at two levels: 1) electronic information systems for the delivery, auditing, monitoring and evaluation of the CAP plans; and 2) the adoption of digital technologies that address the needs of agriculture and rural actors. About electronic information systems, the CAP supports the use of satellites, databases, unmanned vehicles, data portals, GIS and such electronic payment systems as the Integrated Administration and Control System (IACS) and its sub-components (e.g. LPIS, GSP), as well as agri-food data portals, allowing CAP performance and context indicators (e.g. https://agridata.ec.europa.eu/extensions/DataPortal/cap_indicators.html) to be followed. As regards the digital agricultural technologies and rural actors in the field, the CAP provides support to a wide range of technologies that can include the financing of Smart Village projects; the organization of training and knowledge-sharing sessions; financing for the provision of broadband access in rural areas; investments supporting the on-farm installation of digital technologies; or direct payments for the use of precision farming technologies for eco-friendly practices (e.g. Pillar I direct payments for eco-schemes).
Target
The CAP applies primarily to the 27 Member States of the European Union, although its impact and relevance extends also to candidates and potential candidate countries. The main beneficiaries of the CAP include rural communities and farmers of all sizes, specific focus on ensuring income stability through direct payments, and the promotion of sustainability through eco-schemes and digital technologies. The CAP provides financial resources and arranges programmes supporting the investments of agricultural cooperatives into sustainable farming practices, innovation and infrastructural improvements. Farm advisors play a crucial role in bridging the gap between policy-makers and farmers, ensuring the effective implementation of the CAP objectives. The rural communities, on the other hand, benefit from the improved infrastructures and the economic diversification projects funded under the European Agricultural Fund for Rural Development (EAFRD), while the public sector benefits from the CAP through its access to financial resources, and the implementation of tailored policies, support for rural development, enhanced governance, the promotion of sustainable practices and the collaboration among stakeholders. Finally, the private sector can benefit from the CAP through the payments made for the cost of storage of their products for determined durations during times of low market prices.
Business model
The CAP is financed by two funds: the European Agricultural Guarantee Fund (AEGF) and the European Agricultural Fund for Rural Development (EAFRD).
Impact
In the 2014–2020 period, the resources of the CAP were directed towards the provision of high-speed technologies and improved internet services and infrastructures to 18 million rural citizens – equal to 6.4 percent of the rural population of the European Union. The 2023–2027 Common Agricultural Policy (CAP) of the European Union aims to stabilize the income of farmers through direct payments, to promote sustainable practices, to support rural development and to ensure food security. It has, however, faced challenges related to the environmental impacts of intensive farming, income inequality in payment distributions, market distortions affecting global trade and bureaucratic complexity. More information about how the CAP supports the digital transformation of rural areas can be found here: https://www.youtube.com/watch?v=UvVqdNpRXgo&list=PLyMUk47rPuqq76B2nX2SoqMCf5lPgn_Ay&index=14&ab_channel=DigitalEU
Four Betters
Better production
Better environment
Better life
