Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013

TITLE I

SUBJECT MATTER AND SCOPE, APPLICABLE PROVISIONS AND DEFINITIONS

Article 1

Subject matter and scope

This Regulation lays down rules on:

(a) general and specific objectives to be pursued through Union support financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) under the common agricultural policy (CAP) as well as the related indicators;

(b) types of intervention and common requirements for Member States to pursue those objectives as well as the related financial arrangements;

(c) CAP Strategic Plans, which are to be drawn up by Member States and which set targets, specify conditions for interventions and allocate financial resources, according to the specific objectives and identified needs;

(d) coordination and governance as well as monitoring, reporting and evaluation.

Article 2

Applicable provisions

Article 3

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘farmer’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members by national law, whose holding is situated within the territorial scope of the Treaties, as defined in Article 52 of the Treaty on European Union in conjunction with Articles 349 and 355 of the Treaty on the Functioning of the European Union (TFEU), and who exercises an agricultural activity as determined by Member States in accordance with Article 4(2) of this Regulation;

(2) ‘holding’ means all the units used for agricultural activities and managed by a farmer situated within the territory of the same Member State;

(3) ‘intervention’ means a support instrument with a set of eligibility conditions specified by a Member State in its CAP Strategic Plan based on a type of intervention provided for in this Regulation;

(4) ‘operation’ means: (a) a project, contract, action or group of projects or actions selected under the CAP Strategic Plan concerned; (b) in the context of financial instruments, the total eligible public expenditure granted to a financial instrument and the subsequent financial support provided to final recipients by that financial instrument;

(5) ‘public expenditure’ means any contribution to the financing of operations the source of which is the budget of national, regional or local public authorities, the budget of the Union made available to the EAGF and the EAFRD, the budget of public law bodies or the budget of associations of public authorities or of public law bodies;

(6) ‘milestones’ means intermediate pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), for a specific financial year to be achieved at a given point in time during the CAP Strategic Plan period to ensure timely progress in relation to the result indicators;

(7) ‘targets’ means pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), to be achieved at the end of the CAP Strategic Plan period in relation to the result indicators;

(8) ‘outermost regions’ means the outermost regions referred to in Article 349 TFEU;

(9) ‘AKIS’ means the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields (Agricultural Knowledge and Innovation System);

(10) ‘smaller Aegean islands’ means smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013;

(11) ‘mutual fund’ means a scheme accredited by a Member State in accordance with its national law for affiliated farmers to insure themselves, whereby compensation payments are made to affiliated farmers who experience economic losses;

(12) ‘less developed regions’ means less developed regions within the meaning of Article 108(2), first subparagraph, point (a), of Regulation (EU) 2021/1060;

(13) ‘beneficiary’ in relation to the types of intervention for rural development referred to in Article 69 means: (a) a public or private law body, an entity with or without legal personality, a natural person or a group of natural or legal persons responsible for initiating or both initiating and implementing operations; (b) in the context of State aid schemes, the undertaking which receives the aid; (c) in the context of financial instruments, the body that implements the holding fund or, where there is no holding fund structure, the body that implements the specific fund or, where the managing authority referred to in Article 123 (‘the managing authority’) manages the financial instrument, the managing authority;

(14) ‘support rate’ means the rate of public expenditure to an operation; in the context of financial instruments it refers to the gross grant equivalent of the support as defined in Article 2, point (20), of Commission Regulation (EU) No 702/2014 (¹);

(15) ‘LEADER’ means community-led local development referred to in Article 31 of Regulation (EU) 2021/1060;

(16) ‘intermediate body’ means any public or private law body, including regional or local bodies, regional development bodies or non-governmental organisations, which acts under the responsibility of a national or regional managing authority, or which carries out duties on behalf of such an authority;

(17) ‘financial year’ means agricultural financial year in accordance with Article 35 of Regulation (EU) 2021/2116.

Article 4

Definitions and conditions to be provided in the CAP Strategic Plans

‘Agricultural activity’ shall be determined in such a way that it allows to contribute to the provision of private and public goods through one or both of the following:

(a) the production of agricultural products, which includes actions such as raising animals or cultivation including by way of paludiculture, where agricultural products means products listed in Annex I to the TFEU with the exception of fishery products, as well as cotton and short rotation coppice;

(b) the maintenance of the agricultural area in a state which makes it suitable for grazing or cultivation, without preparatory action going beyond the use of usual agricultural methods and machinery.

‘Agricultural area’ shall be determined in such a way as to comprise arable land, permanent crops and permanent grassland, including when they form agroforestry systems on that area. The terms ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ shall be further specified by Member States within the following framework:

(a) ‘arable land’ shall be land cultivated for crop production or areas available for crop production but lying fallow; in addition, it shall, for the duration of the commitment, be land cultivated for crop production or areas available for crop production but lying fallow that have been set aside in accordance with Article 31 or Article 70 of this Regulation, or with Articles 22, 23 or 24 of Council Regulation (EC) No 1257/1999 (²), or with Article 39 of Council Regulation (EC) No 1698/2005 (³), or with Article 28 of Regulation (EU) No 1305/2013 of the European Parliament and of the Council (⁴);

(b) ‘permanent crops’ shall be non-rotational crops other than permanent grassland and permanent pasture that occupy the land for five years or more and that yield repeated harvests, including nurseries and short rotation coppice;

(c) ‘permanent grassland and permanent pasture’ (together referred to as ‘permanent grassland’) shall be land that is used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more or, where Member States so decide, for seven years or more and, where Member States so decide, that has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage, for five years or more or for seven years or more; it may include other species, such as shrubs or trees, which can be grazed and, where Member States so decide, other species such as shrubs or trees which produce animal feed, provided that the grasses and other herbaceous forage remain predominant. Member States may decide that land that was classified as arable land on 1 January 2026 remains classified as arable land and is not reclassified as permanent grassland even if the period referred to in the first subparagraph has expired and the land has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage. Member States may also decide to consider the following types of land to be permanent grassland: (i) land which is covered by any of the species referred to in this point and which forms part of established local practices, where grasses and other herbaceous forage are traditionally not predominant or absent in grazing areas; (ii) land covered by any of the species referred to in this point, where grasses and other herbaceous forage are not predominant or are absent in grazing areas.

For the purpose of types of intervention in the form of direct payments, ‘eligible hectare’ shall be determined in such a way that it covers areas which are at the farmer’s disposal and which consist of:

(a) any agricultural area of the holding that, during the year for which support is requested, is used for an agricultural activity or, where the area is also used for non-agricultural activities, is predominantly used for agricultural activities; where duly justified for environmental, biodiversity and climate-related reasons, Member States may decide that eligible hectares also include certain areas used for agricultural activities only every second year:

(b) any area of the holding which is: (i) covered by landscape features subject to the retention obligation under GAEC standard 8 listed in Annex III; or (ii) for the duration of the relevant commitment by the farmer, established or maintained as a result of an eco-scheme referred to in Article 31. If Member States so decide, ‘eligible hectare’ may contain other landscape features, provided they are not predominant and do not significantly hamper the performance of the agricultural activity due to the area they occupy on the agricultural parcel. In implementing that principle, Member States may set a maximum share of the agricultural parcel covered by those other landscape features. As regards permanent grassland with scattered ineligible features, Member States may decide to apply fixed reduction coefficients to determine the area considered eligible;

(c) any area of the holding that gave a right to payments under Title III, Chapter II, Section 2, Subsection 2, of this Regulation or under the basic payment scheme or the single area payment scheme laid down in Title III of Regulation (EU) No 1307/2013, and which is not an ‘eligible hectare’ as determined by Member States on the basis of points (a) and (b) of this paragraph: (i) as a result of the application of Directive 92/43/EEC, 2009/147/EC or 2000/60/EC to that area; (ii) as a result of area-based interventions set out under this Regulation covered by the integrated system referred to in Article 65(1) of Regulation (EU) 2021/2116 allowing for the production of products not listed in Annex I TFEU by way of paludiculture, or under national schemes for biodiversity or greenhouse gas reductions the conditions of which comply with those area-based interventions, provided that those interventions and national schemes contribute to achieving one or more specific objectives set out in Article 6(1), points (d), (e) and (f), of this Regulation; (iii) for the duration of an afforestation commitment by the farmer, pursuant to Article 31 of Regulation (EC) No 1257/1999 or to Article 43 of Regulation (EC) No 1698/2005 or to Article 22 of Regulation (EU) No 1305/2013 or to Article 70 or Article 73 of this Regulation, or under a national scheme the conditions of which comply with Article 43(1), (2) and (3) of Regulation (EC) No 1698/2005 or Article 22 of Regulation (EU) No 1305/2013 or Article 70 or Article 73 of this Regulation; (iv) for the duration of a commitment by the farmer resulting in the setting aside of the area, pursuant to Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, to Article 39 of Regulation (EC) No 1698/2005, to Article 28 of Regulation (EU) No 1305/2013 or to Article 70 of this Regulation.

Areas used for the production of hemp shall be eligible hectares only if the varieties used have a tetrahydrocannabinol content not exceeding 0,3 %.

When determining who is an ‘active farmer’, Member States shall apply objective and non-discriminatory criteria, such as income tests, labour inputs on the farm, company object and inclusion of their agricultural activities in national or regional registers. Such criteria may be introduced in one or more forms chosen by Member States, including through a negative list disqualifying a farmer from being considered to be an active farmer. If a Member State considers to be ‘active farmers’ those farmers who did not receive direct payments exceeding a certain amount for the previous year, such an amount shall not be higher than EUR 5 000 .

‘Young farmer’ shall be determined in such a way as to include:

(a) an upper age limit set between 35 years and 40 years;

(b) the conditions for being ‘head of the holding’;

(c) the appropriate training or skills required, as determined by Member States.

TITLE II

OBJECTIVES AND INDICATORS

Article 5

General objectives

In accordance with the objectives of the CAP set out in Article 39 TFEU, with the objective to maintain the functioning of the internal market and a level playing field between farmers in the Union and with the principle of subsidiarity, support from the EAGF and the EAFRD shall aim to further improve the sustainable development of farming, food and rural areas and shall contribute to achieving the following general objectives in the economic, environmental and social spheres, which will contribute to the implementation of the 2030 Agenda for Sustainable Development:

(a) to foster a smart, competitive, resilient and diversified agricultural sector ensuring long-term food security;

(b) to support and strengthen environmental protection, including biodiversity, and climate action and to contribute to achieving the environmental and climate-related objectives of the Union, including its commitments under the Paris Agreement;

(c) to strengthen the socio-economic fabric of rural areas.

Article 6

Specific objectives

The achievement of the general objectives shall be pursued through the following specific objectives:

(a) to support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union;

(b) to enhance market orientation and increase farm competitiveness both in the short and long term, including greater focus on research, technology and digitalisation;

(c) to improve the farmers’ position in the value chain;

(d) to contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as to promote sustainable energy;

(e) to foster sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency;

(f) to contribute to halting and reversing biodiversity loss, enhance ecosystem services and preserve habitats and landscapes;

(g) to attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas;

(h) to promote employment, growth, gender equality, including the participation of women in farming, social inclusion and local development in rural areas, including the circular bio-economy and sustainable forestry;

(i) to improve the response of Union agriculture to societal demands on food and health, including high-quality, safe and nutritious food produced in a sustainable way, to reduce food waste, as well as to improve animal welfare and to combat antimicrobial resistance.

Article 7

Indicators

Achievement of the objectives referred to in Articles 5 and Article 6(1) and (2) shall be assessed on the basis of common indicators related to output, result, impact and context as set out in Annex I. Those common indicators shall include:

(a) output indicators relating to the realised output of the interventions supported;

(b) result indicators relating to the specific objectives concerned referred to in Article 6(1) and (2), and which are used for the establishment of quantified milestones and targets in relation to those specific objectives in the CAP Strategic Plans and for assessing progress towards those targets; result indicators relating to environmental and climate-related objectives may cover interventions which contribute to the fulfilment of the commitments emanating from the Union legislative acts listed in Annex XIII;

(c) impact indicators related to the objectives set out in Article 5 and Article 6(1) and (2) and used in the context of the CAP Strategic Plans and of the CAP;

(d) context indicators referred to in Article 115(2) and listed in Annex I.

TITLE III

COMMON REQUIREMENTS AND TYPES OF INTERVENTION

CHAPTER I

COMMON REQUIREMENTS

Section 1

General principles

Article 8

Strategic approach

Member States shall pursue the objectives set out in Title II by specifying interventions on the basis of the types of intervention set out in Chapters II, III and IV of this Title in accordance with their assessment of needs and with the common requirements set out in this Chapter.

Article 9

General principles

Member States shall design the interventions of their CAP Strategic Plans and GAEC standards referred to in Article 13 in accordance with the Charter of Fundamental Rights of the European Union and the general principles of Union law.

Member States shall ensure that interventions and GAEC standards referred to in Article 13 are set out on the basis of objective and non-discriminatory criteria, are compatible with the proper functioning of the internal market and do not distort competition.

Member States shall establish the legal framework governing the granting of Union support to farmers and other beneficiaries in accordance with the CAP Strategic Plans as approved by the Commission in accordance with Articles 118 and 119 of this Regulation and with the principles and requirements set out in this Regulation and in Regulation (EU) 2021/2116. They shall implement those CAP Strategic Plans as approved by the Commission.

Article 10

WTO domestic support

Member States shall design the interventions on the basis of the types of intervention which are listed in Annex II to this Regulation, including the definitions and conditions set out in Article 4, in such a way that they qualify under the criteria of Annex 2 to the WTO Agreement on Agriculture.