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Common Agricultural Policy (CAP): On 2 December 2021, the reform of the CAP was formally adopted. The new legislation came into force in January 2023 and covers farmers' applications introduced as of 2023. The new CAP is a modernised policy, with a strong emphasis on results and performance. The policy as applicable as of 2023 focuses on ten specific objectives, linked to common EU goals for social, environmental, and economic sustainability in agriculture and rural areas. It seeks to ensure a more sustainable future for European farmers, provide more targeted support to smaller farms, and allow greater flexibility for EU member States to adapt measures to local conditions. Agriculture and rural areas are central to the European Green Deal , and the new CAP will be a key tool in reaching the ambitions of the Farm to Fork and Biodiversity strategies. (...) Building on the previous system of cross-compliance implemented until 2022, the system of new conditionality links full receipt of CAP support to the compliance of farmers and other beneficiaries with basic standards concerning the environment, climate change, public health, plant health and animal welfare. The basic standards encompass in a streamlined form a list of statutory management requirements (SMRs) and standards of good agricultural and environmental conditions of land (GAEC standards). Those basic standards should better take into account the environmental and climate challenges and the new environmental architecture of the CAP, thus delivering a higher level of environmental and climate ambition as set out in the Commission communication on the 'Future of Food and Farming' and the MFF for the years 2021 to 2027, established by Council Regulation (EU, Euratom) 2020/2093. Conditionality aims to contribute to the development of sustainable agriculture through better awareness on the part of beneficiaries of the need to comply with those basic standards. It also aims to make the CAP more compatible with the expectations of society through improving consistency of the CAP with the environment, public health, plant health and animal welfare objectives. Conditionality forms an integral part of the environmental architecture of the CAP, as part of the baseline for more ambitious environmental and climate-related commitments and should be comprehensively applied across the Union. Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to farmers and other beneficiaries who do not comply with those requirements.

CAP 2023-2027: Decoupled Direct Payments: Basic Income Support for Sustainability (BISS): Direct payments are aimed at supporting and stabilising farmers" incomes. They also ensure the provision of environmental public goods, as they are conditional on compliance with basic standards for good agriculture and environmental conditions (GAECs). In order to guarantee a minimum level of agricultural income support for all active farmers, as well as to comply with the objective of ensuring a fair standard of living for the agricultural community an annual area-based decoupled direct payment is established as the type of intervention BISS. It is an annual decoupled payment per hectare, granted with no requirement to produce and with no link to any type or volume of production. (...) The unit value of payment entitlements is proportional to their value as established under the basic payment schemes pursuant to Regulation (EU) No 1307/2013, taking into account the payments for agricultural practices beneficial for the climate and the environment. Payments under the BISS comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 6 if implementation is based on payment entitlements; (...) and paragraph 5 if implementation is not based on payment entitlements.

CAP 2023-2027: Decoupled Direct Payments: Schemes for the climate, the environment and animal welfare (eco-schemes): Direct payments are aimed at supporting and stabilising farmers" incomes. They also ensure the provision of environmental public goods, as they are conditional on compliance with basic standards for good agriculture and environmental conditions (GAECs). The CAP should ensure that member States increase the environmental delivery by respecting local needs and farmers' actual circumstances. Member States set up eco-schemes which are voluntary for farmers, and which should be fully coordinated with the other relevant interventions. They can take form of a payment granted either for and remunerating the provision of public goods by agricultural practices beneficial to the environment and climate (additional to the BISS payment), or as compensation for carrying out those practices. In both cases, they should aim to enhance the environmental and climate-related performance of the CAP and should consequently be conceived to go beyond the mandatory requirements already prescribed by the system of conditionality. (...) the eco-schemes comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 6 if implementation of the BISS is based on payment entitlements. (...) the eco-schemes comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 6 if implementation of the BISS is based on payment entitlements. (...) the eco-schemes comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 5 if implementation of the BISS is not based on payment entitlements; Schemes for the climate, the environment and animal welfare granted as compensation for carrying out practices beneficial to the environment and climate comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 12.

CAP 2023-2027: Coupled Direct Payments: Coupled Income Support: Within the framework of the direct payments system, Coupled Income Support can be applied in up to 19 agricultural sectors and type of production at the choice of each member State. The support is limited in terms of both amounts available and objectives. It can take form of an annual payment per hectare or per animal. Member States may grant Coupled Income Support in clearly defined cases where specific types of farming or specific agricultural sectors that are particularly important for economic and/or social and/or environmental reasons undergo certain difficulties in terms of risk of decline or of abandonment of production.

CAP 2023-2027: Sectorial Interventions: A number of interventions in certain sectors are established in accordance with the requirements of Annex 2 of the Agreement on Agriculture. They relate to the sectors of fruit and vegetables, wine, apiculture products, olive oil and table olives and hops sectors.
Fruit and vegetables, hops, olive oil, table olives and other sectors (...). Investments in tangible and intangible assets, research and experimental and innovative production methods and other actions, in areas such as: Soil conservation, including the enhancement of soil carbon and soil structure, and the Reduction of contaminants - Paragraph 12; Improvement of the use of and sound management of water, including water saving, water conservation and drainage - Paragraph 12; Preventing damage caused by adverse climatic events and promoting the development and use of varieties, breeds and management practices adapted to changing climate conditions - Paragraph 12; Increasing energy saving, energy efficiency and the use of renewable energy - Paragraph 12 or 11; Ecological packaging, only in the field of research and experimental production – Paragraph 2; Biosecurity, animal health and welfare - Paragraph 12; Reducing emissions and waste, improving the use of by-products, including their reuse and valorisation, and the management of waste - Paragraph 11 or 12; Improving resilience against pests and reducing risks and impacts of pesticide use, including implementing Integrated Pest Management Techniques - Paragraph 2 or 11 or 12;; Creating and maintaining habitats favourable to biodiversity - Paragraph 12; Organic or integrated production – Paragraph 12; Actions to increase the sustainability and efficiency of transport and storage – Paragraph 11, 12 or 2; Climate change adaptation and mitigation – Paragraphs 11, 2 or 12;
Apiculture: Investment in tangible and intangible assets, as well as other actions, including for combatting beehive invaders and diseases – Paragraph 11 or 12 or 2; Investment in tangible and intangible assets, as well as other actions, including for preventing damage caused by adverse climatic conditions, development and use of management practices – Paragraph 11 or 12 or 2;
Wine: Restructuring and conversion – Paragraph 8, 11 or 12;

CAP 2023-2027: Types of Interventions in Rural Development: Environmental, climate-related and other management commitments: Types of intervention for rural development include payments for environmental, climate-related and other management commitments that member States should support throughout their territories, in accordance with their specific national, regional or local needs.
Payments to farmers and other land managers who undertake, on a voluntary basis, management commitments that contribute to climate change mitigation and adaptation and to the protection and improvement of the environment including water quality and quantity, air quality, soil, biodiversity and ecosystem services including voluntary commitments in Natura 2000 areas and support for genetic diversity.
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 12.

CAP 2023-2027: Types of Interventions in Rural Development: Area-specific disadvantages resulting from certain mandatory requirements. A measure aiming at compensating beneficiaries for disadvantages related to the implementation of Natura 2000, established by Directive 92/43/EEC, and of Directive 2000/60/EC, and in order to contribute to the effective management of Natura 2000 sites.
Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 12.

CAP 2023-2027: Types of Interventions in Rural Development: Investments including investments in irrigation: Support for investments, productive as well as non-productive, on-farm as well as off-farm. Such investments may concern, inter alia, infrastructures related to the development, modernisation or adaptation to climate change of agriculture and forestry, including access to farm and forest land, land consolidation and improvement, agro-forestry practices and the supply and saving of energy and water. It may also cover investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events, including fires, storms, floods, pests and diseases. Member States are required to make the best use of the available funds for investments by aligning support for investments with the relevant Union rules in the areas of environment and animal welfare. (...) Payments under this measure comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 11 or 8.

CAP 2023-2027: Types of Interventions in Rural Development: Cooperation: Support for the establishment and implementation of cooperation between at least two entities with a view to achieving the objectives of the CAP. Such support can include (...) collective environmental and climate action.

CAP 2023-2027: Types of Interventions in Rural Development: Other Schemes: Aid for the supply of fruits and vegetables and of milk and milk products in educational establishments This scheme allows the European Union to support the distribution of fruit and vegetables and of milk and milk products to children who regularly attend nurseries, pre-schools, primary and secondary-level educational establishments. (...) The scheme also supports accompanying educational materials with the aim of educating the children about (...) local food chains, organic farming, sustainable food production and consumption and combating food waste and reinforcing the link with agriculture. Payments from the school fruit and vegetable scheme comply with paragraph 1 of Annex 2 to the Agreement on Agriculture as well as with the relevant criteria of paragraph 4.