Practical information
- Composition of the study group
- Administrator / Assistant in charge: Arturo INIGUEZ YUSTE/ Luca PITRONE
- Contact
Background
The effects of the COVID-19 outbreak on the farming and food sectors arise from the movement restrictions put in place in the Member States, as well as mandatory closures of shops, outdoor markets, and restaurants and other hospitality establishments. This disruption has led to cashflow problems for farmers and other operators in the supply chain, who will need emergency support in order to maintain their activities.
The support will take the form of a one-off lump sum for farmers and for SMEs which process, sell and/or develop agricultural products. Member States will have to incorporate the measure into existing rural development programmes by amending these, although expenditure would be eligible from the start of the crisis (COVID-19 outbreak).
Considering the time needed for implementing this new measure, it is assumed that payments to beneficiaries will be made in the fourth quarter of 2020, and hence financed under the 2021 budget. The payment appropriations needed to finance this measure are to be accommodated within the appropriations for the EAFRD to be included in the forthcoming Commission's Draft Budget 2021 and will be offset by a corresponding decrease in payment needs in subsequent years.