CAP Subsidies: find out how to process them

Find out everything you need to know about CAP subsidies
The goal of the Common Agricultural Policy (CAP) is to grant and manage subsidies to crop and livestock farmers in the European Union. These subsidies are processed through a single application in the Regional Agricultural Offices (RAO). If you're a farmer and you're thinking about applying for a CAP subsidy, you will be interested to know that at BBVA, we have financial products designed especially for you, such as the Agropréstamo Anticipo PAC, which lets you get an advance on the subsidies if you need more liquidity. Get more information on CAP subsidies, who can apply for them and how.
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Direct deposit the CAP in BBVA
And apply for the Agropréstamo Anticipo PAC to get your money before you receive the subsidy.

What are CAP subsidies and what's new in 2019?

These subsidies were created in the 1950s to offset the disastrous impact that the Second World War had on agriculture, and therefore on food supplies. Its aim was to provide European subsidies to reactivate the economy and activity in the agricultural sector, as well as to guarantee a reasonable quality of life for crop and livestock farmers. The CAP has evolved and adapted to the times but, for now, its original objectives remain the same.

The CAP recently underwent a series of amendments to adapt it to EU law and to environmental commitments, as well as to introduce various technical improvements. On November 8, 2018, the Council of Ministers approved Royal Decree 1378/2018, which went into effect on January 1, 2019, for applications filed that same year and which regulates how CAP subsidies are awarded, thus amending the Royal Decree from 2014. The most relevant changes in this update to the Common Agricultural Policy are as follows:

  • Changes involving pastureland, related to preventing the abandonment of this land, the declaration of their surface areas and the relaxation of subsidy restrictions.
  • Variations involving the use of purines.
  • Addition of a new species to the list of nitrogen-fixing crops.
  • Increase in the amount of data sent to the Land Registry and to the National Statistics Institute (INE), the goal being to leverage the CAP information in order to implement possible improvements in the organization and its subsidies.
  • Simplified enforcement of the regulation and its procedures.
  • Opening of the call to request the incorporation of organic farming.
  • Requirement to declare the surface areas of fruits and vegetables and the information on the manager of the holding and the intended use of the production.

Requirements for applying for CAP subsidies

Crop and livestock farmers who wish to apply for CAP grants must satisfy a series of requirements.

  • The first is being an active farmer, owner of a registered agricultural or livestock holding with the corresponding documentation from the agricultural registry (REA, ROPO, etc.), and performing agricultural activity (farming, production or cultivation of agricultural products) on the stated holding.
  • Similarly, applicants must be able to prove that at least 20% of their total agricultural revenue comes from sources other than the CAP and that they do not engage in any of the excluded activities, such as water supply facilities or real estate services.
  • Finally, they will be required to have passed the Agricultural Activity checks, and to accept the business risk of the holding.
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Get an advance of the grant by arranging for your CAP to be paid into your BBVA account.
You can also request the whole amount.

How to apply for the grants

Once crop or livestock farmers have verified that they satisfy all the requirements specified for the CAP, they may apply for the subsidies. In 2019, the deadline for submitting these applications begins on February 1 and ends on April 30.

The procedure is fast and simple, since even if several subsidies are requested, you just have to file a single application with the relevant agency in the region where the holding, or most of it, is located (for cattle farmers who do not have land, it will be the region where the majority of the animals are located). When submitting the application, it is essential that it be filled out correctly and before the deadline, in addition to including the aforementioned certificates. Otherwise, the applicant could incur penalties or lose the subsidy. New this year is a method being used in certain regions to track the land area declared by farmers, which relies on satellite mapping in order to analyze the eligibility of plots; this method is expected to speed up the process considerably, as it will be used as a means to decide whether the applicant is eligible to receive the subsidy.

Today, applying for CAP subsidies is easier and faster than ever. Simply gather the necessary documents and file them within the specified deadline in order to be eligible for these agriculture-specific subsidies.

BBVA is not liable for the content, truthfulness, accuracy, adequacy, integrity or timeliness of the information included in the articles, which were prepared by third parties external to BBVA. The article is for information purposes only. It is not binding or compulsory and it does not constitute a commercial offer or contractual commitment on the part of BBVA.

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