Omnibus, the Third Package on Agricultural Policy Will Be Released on May 14th

More flexibility on conditionalities for accessing agricultural subsidies, an increase in the ceiling for flat-rate aid for small farmers and faster payments to those affected by the effects of climate change, such as floods and droughts. These are some of the new simplification measures for the Common Agricultural Policy (CAP) contained in the third Omnibus package dedicated to agriculture, according to a draft seen by ANSA.

The adoption of the Omnibus package by the EU Commission is expected on Wednesday 14 May. Having already relaxed the rules last year in response to tractor protests, Brussels is proposing further flexibility for the so-called good agricultural and environmental conditions (‘BCAA’ in jargon), i.e. the basic standards that farmers must meet to receive agricultural subsidies.

The Omnibus document mentions an intervention on the maintenance of permanent grassland (BCAA1) to allow member states to extend the maximum percentage of reduction of permanent grassland from 5 to 10%; the encouragement to EU states to “allow possible payments” to farmers for the protection of peat bogs and wetlands (BCAA2); and a new definition of ‘watercourse’ in the rule on water protection (BCAA4).

Noting that “natural disasters, adverse climatic events and catastrophic events are increasing in frequency, intensity and duration”, the European Commission proposes to include in the new Omnibus package “complementary crisis payments” among the direct subsidies for affected farmers, allowing capitals to offer an increase in direct income support for farmers “to allow for rapid compensation”, the document states. These payments will not be subject to cross-compliance.

A further broader simplification package of the Omnibus should follow in the course of 2025

To provide further flexibility in the management of national strategic plans, the approval of any amendments by the European Commission should be required only for “strategic amendments,” while retaining the prerogative to reject any amendments considered controversial. As already anticipated, Brussels is also leveraging flat-rate schemes to support small farmers and businesses by proposing a scheme of up to 50,000 euros to support the development of small farms and increasing the ceiling of the flat-rate amount allowed for small farmers to a maximum of 2,500 euros.

The Berlaymont Palace also proposes to amend the horizontal regulation of the CAP so that the Twenty-seven can decide that a farmer is not subjected to on-the-spot checks more than once a year.

Finally, organic farmers will be considered in line with agricultural practices and therefore exempted from most of the cross-compliance requirements. According to what was anticipated in recent months by the responsible Commissioner, Christophe Hansen, a further broader simplification package of the Omnibus should follow in the course of 2025.

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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