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premium_module

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Premium module

Overview

For the European Union, the CAPRI programming models cover in rich detail the different coupled and de-coupled subsidies of the so-called first Pillar 1 of the CAP, as well as major ones from Pillar 2 (i.e., Less Favoured Area support, agri-environmental measures, Natura 2000 support). The interaction between premium entitlements and eligible hectares for the Single Farm Payment (SFP) of the CAP is explicitly considered, as are the different national SFP implementations, possibly remaining coupled payments (previously under article 68 of Council Regulation (EC) No. 73/2009, from 2014 as “Voluntary Coupled Support”).

Decoupled payments – as with other premium schemes of the CAP from the present and past – are simulated in CAPRI relatively closely to their definition in existing legislation. The rather high dis-aggregation of the model template regarding production activities and the resolution by farm types inside of NUTS 2 regions clearly eases that task. Currently, 260 different voluntary coupled support schemes are implemented, in addition to decoupled income support (Basic Payment Scheme, BPS).

The payments – both in reality and in the model – tend to be defined in a cumulative manner. In 1992, the direct payments were introduced based on the previous price support levels multiplied by regional historic reference yields. The payments therefore became regionally differentiated. In the subsequent decoupling under Agenda 2000 and the following reforms, the single farm payments were defined based on the payments that each farm had previously received. The payments got very different expressed per hectare for farms in high yield regions versus low yield regions and for farms that had held animal payments versus arable farms. Then, the 2013 reforms introduced convergence of payment rates, both across farms (internal convergence) and between member states (external convergence). CAPRI reflects these incremental reforms, so that the payment rates in the most recent reform are based on coupled payments from MacSharry times.

Given that each reform has added complexity to the previous system, so too has the premium module of CAPRI grown to maintain the capacity to model previous reforms while allowing novel features such as greening to be introduced. Nevertheless, two generic features can be distinguished, that form the basis for many payments: the basic concept of a premium payment, and the idea of payment entitlements. Those are treated in separate sections here. Then, we proceed to describe the incremental reforms of the first pillar of the CAP, starting with the most recent, and the implementation of selected second pillar payments. Finally, we discuss certain elements relating to the reporting of premium payments, most notably the financing over different budgets.

Basic concept

premium_module.1584099285.txt.gz · Last modified: 2022/11/07 10:23 (external edit)

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