Credit: Pixabay
On Tuesday 13 September 2022, the European Commission approved Luxembourg's national strategic plan for the implementation of the Common Agricultural Policy (CAP) for 2023 to 2027.
Luxembourg's Ministry of Agriculture, Viticulture and Rural Development had submitted the national strategic plan for CAP 2023-2027 to the Commission earlier this year. The national strategic plan is a strategic roadmap through which the Grand Duchy transposes the objectives of the CAP 2023-2027.
Claude Haagen, Luxembourg's Minister of Agriculture, Viticulture and Rural Development, described the national strategic plan as a "balanced compromise allowing environmental objectives to be met while ensuring the modernisation of agricultural holdings". He continued: "The plan respects the specificities of Luxembourg and makes it possible to ensure the sustainability of an agricultural sector largely driven by family-type businesses, of medium or small size, and offers a series of tools which enable the agricultural sector to adapt to new challenges". Minister Haagen also emphasised that the national strategic plan is the result of a long phase of preparation, sectoral consultation and public consultation.
Overall, the objectives and approach of the national strategic plan as well as the interventions integrated into it have been approved by the European Commission as proposed in the very first version submitted. Negotiations provided additional information enabling the overall context of the situation of the agricultural sector in Luxembourg to be assessed and the consistency between the national strategic plan, the national measures and the various Luxembourg and European strategies to be checked.
The Agriculture Ministry recalled that, among the specificities of the Grand Duchy's national strategic plan, it aims to ensure a fair income for producers, to support their competitiveness, to distribute aid more equitably to family farms, to further help sectors in difficulty and to diversify agricultural production. The second major priority is to make agriculture more respectful of the environment and natural resources. Thus, 25% of direct payments are reserved for eco-schemes and agro-environmental and investment measures are adapted to encourage producers to reduce emissions and improve biodiversity. Finally, the national strategic plan supports the renewal of generations, new farmers and the creation of businesses. Local development in rural areas will be strengthened, in particular through the European LEADER initiative.
The Grand Duchy's financial commitment under the national strategic plan 2023-2027 amounts to €164 million for direct payments, including €41 million for eco-schemes and €301 million for rural development. More than half of the expenditure is planned to achieve environmental objectives. The budget for additional national measures amounts to €336 million.
The reformed CAP will come into force on 1 January 2023. The new agrarian law was adopted by the Luxembourg Government Council on 22 July 2022 and then tabled in the Chamber of Deputies (Luxembourg's parliament). At the same time, the related regulations that specify the different aid schemes are being finalised with the aim of ensuring a rapid transition to the new agrarian law. A description of the new measures has already been published and communicated to stakeholders.
