Over the five-year period of the 2023-2027 CAP Strategic Plan, Pillar II, which covers Rural Development interventions such as those that address biodiversity loss and water quality, as well as combating climate change, has been allocated a budget of €3.86 billion.
In comparison to the previous programming period, this represents a significant increase in Pillar II funding from a number of perspectives.
For example, on a five-year comparison, it is more than €900 million higher than the actual spend on the previous Rural Development Programme from 2016-2020, and on a seven-year comparison, the overall allocation from 2021-2027 is €1.2 billion higher than that for the 2014-20 period.
A higher level of climate and environmental ambition will be achieved through a number of measures, including:
- a new €1.5 billion Agri-Climate Rural Environment Scheme (ACRES), which is targeted at 50,000 farmers;
- an ambitious €256 million Organic Farming Scheme, which aims to more than triple the area of agricultural land that is farmed organically by 2027, from 2% to 7.5%;
- a €260 million Suckler Carbon Efficiency Programme;
- a €25 million Dairy Beef Welfare measure;
- a €100 million Sheep Improvement Scheme to improve productive efficiency, which is critically important in the context of delivering on climate ambitions;
- a €50 million Straw Incorporation Measure that will improve soil quality and lead to a reduction in chemical fertiliser usage.
- The combined allocation of funds for green interventions in Pillar II amounts to 67% of Pillar expenditure - almost double the regulatory target of 35%.
In the case of Pillar I (direct payments and sectoral interventions), expenditure of €5.97 billion has been allocated. Increased environmental and climate ambition will be achieved through the ring-fencing of 25% of the direct payments ceiling (€297 million annually, and just under €1.5 billion over the period of the CSP) for the delivery of suitable farming practices under a new Eco-Scheme, as well as a €35 million Protein Aid Scheme.