Increased Threshold for First Payment in Agriculture Bonus

Good News for Farmers: PAC Bonuses Threshold Increased

Great news for farmers! The threshold for the first advance of the Common Agricultural Policy (CAP) bonuses has been raised to 70%.
This historic decision by the European Commission allows Member States and paying agencies to grant higher amounts right from the first advance.

The primary aim of the CAP is to support agricultural enterprises in achieving incomes comparable to other business activities while steering farming towards eco-sustainable production.
It provides assistance to farmers based on the cultivation type.

Who Can Benefit from the Increased Advance?

Here’s how the CAP agriculture contribution payments work:

Generally, CAP contributions are disbursed by paying agencies between December 1st of the application year and June 30th of the following year.
However, these agencies can deviate from this general rule, issuing advances between October 16th and December 1st post-application.
Advances may be 50% for direct payments and can reach 75% for rural development bonuses.

In cases where the sector faces challenges, the European Commission often allows member states to further relax these criteria and increase the first advance percentage.

For 2024, the European Commission accepted a proposal to permit Member States and paying entities to pay advances of up to 70% for direct contributions from the CAP’s first pillar and up to 85% for rural development agriculture bonuses.
This represents a vital support system for farmers.

Steps for Accessing Increased PAC Advances

Additionally, it’s important to note that the deadline for submitting applications for CAP agriculture contributions has been extended for 2024.
According to Minister of Agriculture Francesco Lollobrigida’s decree of July 29, 2024, the new deadline is August 30, 2024, with a reduced deadline of September 24, 2024.

While the extension does not affect the first advance payment due by October 16, 2024, further actions are necessary.
Following the publication of relevant documents in the Official Journal, the Ministry of Agriculture, Food Sovereignty, and Forests, led by Minister Lollobrigida, must implement appropriate measures to ensure the dereliction of operational standards in Italy.

Once the ministry establishes the necessary provisions, it will be up to the paying agencies to determine which PAC interventions can receive the increased advance threshold beginning October 16 and to establish the conditions for early payments ahead of the standard December 1 date.

Lastly, for 2024, strict monitoring will be reinforced through the use of Artificial Intelligence technology.