Potential payment under GAEC 2 as part of CAP simplification (2025)

Paying farmers for meeting requirements under the controversial good agricultural and environmental condition (GAEC) 2 may form part of a further upcoming simplification of the Common Agricultural Policy (CAP).

GAEC 2 – one of several GAEC rules that govern conditionality for payments under CAP – is described as a baseline requirement for the protection of carbon-rich soils, including peatlands and wetlands.

A leaked internal European Commission document, seen by Agriland, is recommending to allow possible payments for “the practices, considered currently baseline” under GAEC 2.

The recommendation is part of a list of measures that will be considered as part of a simplification package for CAP. Which measures will form part of the final simplification package remain to be seen.

The document, which is understood to have been written up by the commission’s Directorate-General of Agriculture (DG AGRI), says: “Due to [GAEC 2’s] sensitivity, level of contribution to the [greenhouse gas] emissions, aspects of stability, and timing of implementation, a careful consideration is needed in relation to possible changes.

“Following…requests, AGRI prepared a set of options, including their pros and cons, and recommending, if need be, to allow possible payments for the practices, considered currently as ‘baseline’,” the document adds.

The document also includes a possible measure to adjust the relevant legal text by specifying that, when implementing GAEC 2, member states, when defining standards, may relay on their national legislation that is protecting peatlands and wetlands, and allow possible payments of those actions.

Elsewhere, the document also includes a measure to allow member states to ensure that a farmer is not subject to an ‘on-the-spot’ control for CAP interventions more than once in a calendar year.

However, the document also states that this proposed change risks “weakening the governance systems, in particular, deterrent effect of controls”.

“It is also very likely that it will be impossible to properly control farms with multiple payments linked to several eligibility conditions, while small farms can face increased controls,” the document added.

In the case of young farmers, the document includes a measure to allow investments to be financed that bring farms up to “legal standards”.

Other measures outlined in the commission document include:

• Derogation for organic farmers from GAECs 1,3,4,5 and 6;
• Allowing payments per livestock unit for environmental, climate and organic farming commitments;
• Flexibilities on GAEC 1 (maintenance of permanent grasslands);
• Applying GAEC 4 (buffer strips along water courses) along water courses as defined by member states under the Water Framework Directive;
• Removal of two environment/climate related articles from the CAP strategic plan regulation;
• Flexibility on risk management tools for calculation of losses for certain groups of farmers or areas, and allowing for selection of farmers based on situation or needs;
• Allowing member states to create a crisis intervention for natural disaster emergencies with up to 2% of the national CAP envelope;
• A simplified payment scheme for ‘small farmers’ not otherwise receiving CAP Pillar I funding, and exempting them from conditionality while allowing them access to the Pillar I eco-scheme;
• A new lump sum payment of €50,000 for the business development of ‘small farms’;
• Additional financial incentive to producer organisations in the fruit and vegetable sector;
• Changes to financial instruments, including allowing eligibility of VAT in financial instruments;
• Further use of digital tools;
• Simplifying the Integrated Administration and Control System (IACS), further reducing on-the-spot controls;
• Providing further flexibility to member states on conditionality controls, also with the aim of reducing on-the-spot controls.

MEP welcomes CAP simplification

Although the CAP simplification package is yet to be finalised and announced, an Irish MEP has welcomed the slate of possible simplification measures.

Midlands–North-West MEP Ciaran Mullooly said the measures outlined are “a step in the right direction for farmers across Ireland and Europe”.

“I am personally pleased with the commission’s proposals, particularly the recognition that farmers impacted by GAEC 2 should be eligible for payments based on income forgone. This principle, that farmers deserve fair compensation for complying with environmental conditions, was a key issue in my discussions with the commission,” Mullooly said.

He also drew attention to two further elements of the proposals – the reduction in on-farm inspections and increased support for new-generation farmers.

“These changes represent meaningful steps to reduce unnecessary burdens and ensure generational renewal in farming, something that’s vital for the long-term sustainability of rural communities,” Mullooly said.

“It’s clear that the protests by Irish and European farmers during last [year’s] ‘summer of discontent’ are beginning to pay off. The voices of farmers are finally being heard,” he added.