The Common Agricultural Policy (CAP) aims to promote agricultural competitiveness, ensures an adequate and secure food supply and preservation of the environment. It aims to do this through promoting smart, sustainable and inclusive growth and by ensuring resource efficiency and the use of renewable energy. To promote territorial development across Europe, CAP will support actions to mitigate and adapt to climate change, to protect ecosystems and fight biodiversity loss and supporting diversification of economic activity in rural areas.
CAP is divided into two Pillars; Pillar I, the European Agriculture Guarantee Fund (EAGF) and Pillar II, the European Agricultural Fund for Rural Development (EAFRD).
EAGF will continue to finance payments directly to farmers and support to market measures. The aim of this fund is to regulate agricultural markets such as intervention and export refunds. EAGF is funded entirely by the EU budget, to ensure the application of a common policy throughout the single market and to allow for an integrated administration and control system.
EAFRD will focus on fostering knowledge transfer and innovation in agriculture, enhance competitiveness, promote resource efficiency and social inclusion, poverty reduction and economic development in rural areas.
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