No. 34 The future of the Common Agricultural Policy 64 ANALYSIS AND PROSPECTIVE STUDIES CULTIVAR of the former cohesion funds for a substantially smaller budget. Thus, although the number of headings and programmes is in fact reduced, this seems to create a much more complex, fragmented and labyrinthine situation, with a lower degree of common policy, as different Member States will be able to establish different levels of cofinancing. In addition, there is a reduction in the importance of European policies with shared management by Member States and a strengthening of centrally managed policies, which will tend to favour better-prepared Member States. 2. The proposal under the CAP: changes to the model, planned interventions and main constraints A. The follwo ing majorhcange s are noteworthy: 1. There will be three main regulations: the CAP Regulation, the National and Regional Partnership Fund (NRPF) Regulation and the Performance Regulation (which establishes a framework for monitoring budgetary expenditure and performance and other horizontal rules for the various programmes). There are also other regulations, for school schemes, the Common Organisation of Markets (COM), among others. 2. The two current funds, EAGF – European Agricultural Guarantee Fund and EAFRD – European Agricultural Fund for Rural Development, which support the first and second pillars of the CAP respectively, will disappear, although the various instruments of both pillars will continue to exist. 3. CAP support shall be granted under the Partnership Fund, in accordance with the rules of the NRPF Regulation and the CAP Regulation, but the former shall prevail over the latter. However, several CAP measures will not be included in the ring-fencing of the CAP budget: POSEI (support for the outermost regions to address remoteness, insularity or an adverse climate, applicable in the Autonomous Region of the Azores and the Autonomous Region of prevail Madeira); LEADER (support for disadvantaged rural areas with a community-based approach to local development); collective investments in irrigation; investments in agro-industry. 4. The Commission adopts a priori recommendations for the implementation of the CAP, which identify the main challenges and provide guidance to each Member State (MS) to take into account when drawing up its Partnership Plan. 5. The delimitation for environment and climate no longer exists in the CAP, applying at the level of the Partnership Plan (43%) and the overall MFF (35%). 6. Environmental and climate actions replace the current eco-schemes and agri-environmental commitments (climate change adaptation and mitigation and water resilience, soil health, biodiversity, organic farming, animal health and welfare). 7. In nitrate-vulnerable areas, there will be support for extensification or diversification. Other relevant changes and details: a) The crisis reserve amount, now called the Unity Safety Net, doubles and will be allocated exclusively to farmers; b) Agriculture will continue to benefit from European research through Horizon Europe and the new Competitiveness Fund; c) The new inflation adjustment method will better protect farmers from unpredictable price fluctuations. d) Support will be targeted primarily at farmers who carry out agricultural activities on their farms and actively contribute to food security. There are specific CAP definitions of farmer, agricultural activity and eligible hectare; e) While maintaining direct payments, the reform introduces measures to give priority, with differentiated payments and possible fixed amounts, to young farmers, new farmers, women, families, small farms, mixed farms and farms located in areas with natural constraints;
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