Agriculture in Bioeconomy
The common agricultural policy (CAP) was first formulated in the Treaty of Rome in 1958. A strategic document has been developed under the Europe 2020 flagship initiatives. Reforms supported by the strategic document have taken place. The new CAP applies for the period 2014-2020.
The CAP is financed by two funds. They include several environmental measures:
1. European Agricultural Guarantee Fund (EAGF)
a) Direct payments to farmers
Cross-compliance links direct payments to farmers to compliance with basic standards concerning
animal and plant health and animal welfare
as the requirement of maintaining land in good agricultural and environmental conditions.
In order to receive green direct payments farmers need to adopt practices such as
maintain permanent grassland, and
dedicate 5 % of arable land to ‘ecologically beneficial elements’ fallow land, hedges and trees).
Help to stabilise biomass prices through public intervention (e.g. buying in through the competent authorities of Member States and storage of products).
2. European Agricultural Fund for Rural Development (EAFRD)
Finances so-called agri-environment-climate measures.
These measures affect the availability, prices and price stability of biomass and the environmental impact of bioeconomy value chains using agricultural raw materials.