On Friday 21 January 2022, Luxembourg's Ministry of Agriculture, Viticulture and Consumer Protection and Ministry of Health announced that the Government Council (Cabinet) has adopted financial commitment of €471 million under the National Strategic Plan (PSN) for the future Common Agricultural Policy (CAP) from 2023 through 2027.

The mandate was developed under the outgoing Minister Romain Schneider and presented to the Government Council by Claude Haagen, the new Minister of Agriculture, Viticulture and Rural Development.

The latest adaptations of the PSN were transposed at the beginning of 2022 allowing the ministry as national coordinating body to complete the analysis of the opinions received within the framework of the public consultation on the PSN and Minister Haagen to add to the final mandate. The PSN will now be sent to the European Commission and negotiations will officially begin.

The PSN is a roadmap through which the Grand Duchy transposes the objectives of the CAP 2023-2027 into national agricultural policy.

Minister Haagen said: "By adopting the PSN, drawn up within my ministry, the government reconfirms its support for the establishment of a new CAP aimed at ensuring a fair agricultural income and supporting the sustainable transition of the agricultural sector. This PSN is part of the vision of an 'agriculture+' of my predecessor Romain Schneider, which I share, and which is based on the three ecological, economic and social pillars, and which is characterised by its sustainability, quality and diversity. It is the result of a long phase of preparation, sectoral consultation and public consultation."

Fair income of farmers, sustainable development and generational renewal of the agricultural sector

Luxembourg's PSN aims to contribute to the nine objectives of the CAP and the European Green Deal.

Its first priority will be to ensure a fair level of income for agricultural producers and to strengthen their competitiveness through direct support measures and a fairer distribution of aid to small and medium-sized family farms. Thus, new specific aids supporting sectors in economic difficulty and aimed at diversifying agricultural production are being introduced. Cattle farmers, as well as market gardeners and fruit growers will benefit from it.

The second priority will be to make the agricultural sector more sustainable, by increasing the share of the budget reserved for measures to protect the environment, climate, biodiversity and animal welfare.

In future, 25% of direct payments will be devoted to environmental and climate protection programmes called "eco-schemes".

In addition, agro-environmental and investment measures will be adapted to encourage dairy producers and cattle breeders to reduce greenhouse gas and ammonia emissions.

Finally, the PSN will support the renewal of generations and the sustainability of farms through aid for young and new farmers and aid for business creation. The measures to strengthen rural development will include the European LEADER initiative as well.

The financial commitment of the Grand Duchy within the framework of the PSN 2023-2027 amounts to €163,739,135 of expenditure for the first pillar and €307,766,100 of expenditure for the second pillar.

In terms of future deadlines, the National Strategic Plan will now be sent to the European Commission and soon presented to the Chamber of Deputies (Parliament). The negotiations between the Ministry of Agriculture, Viticulture and Rural Development and the European Commission with a view to adopting the Luxembourg PSN CAP for the period 2023-2027 has begun and will continue for several months.

In Luxembourg, preparations for a new land law based on the PSN is also underway to enable its entry into force in early 2023.