COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE EVALUATION of the impact of the Common Agricultural Policy on territorial development of rural areas
Date: 2021-12-10
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: EAFRD, EAGF, EU direct payments, European Structural and Investment Funds, aid per hectare, case study, regional development, rural development, rural region, single payment scheme

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 10.12.2021  SWD(2021) 398 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE EVALUATION  of the impact of the Common Agricultural Policy on territorial development of rural areas {SWD(2021) 394 final}  
 
 
Context 

Rural  areas  are  an  integral  part  of  the  EU’s  social,  economic  and  environmental  fabric, 
accounting  for  over  80%  of  its  overall  land  area.  A  large  share  of  this  is  farmland,  used  to 
produce affordable food for EU consumers while maintaining jobs in rural areas.  

While  almost  30%  of  the  EU’s  population  live  in  these  areas,  rural  populations  are  both 
shrinking and aging, and a higher share of people are at risk of poverty and social exclusion in 
rural areas, compared with cities.   

This  evaluation  assessed  how  much  the  common  agricultural  policy  (CAP)  contributes  to 
development  in  rural  areas  by  reducing  social  and  economic  imbalances,  including  social 
exclusion within rural areas and between rural and surrounding areas.  

1. Effectiveness  

CAP instruments and measures are effective overall in contributing to balanced development in 
EU rural areas. Two EU rural development schemes – LEADER and support for basic services 
and village renewal in rural areas – are considered particularly effective in this respect as they 
target the wider rural population.  

CAP funding represents almost 50% of farmers income in the most marginal and remote areas 
and  underpins  farm  viability  and  maintenance  in  rural  areas.  Several  CAP  measures  also 
contribute to farm modernisation and productivity growth. However, the uneven distribution 
of support is a limitation on CAP effectiveness in reducing economic disparities between farmers 
and different areas.  

CAP support has a significant spillover effect into the wider rural economy, especially in less 
developed regions. CAP funding also generates gross-value added and employment in rural areas 
across the EU.  

CAP support contributes to generational renewal – depopulation and land abandonment would 
be  worse  without  the  CAP.  However,  the  attractiveness  of  rural  areas,  especially  for  young 
farmers,  also  depends  a  lot  on  transport  and  communications  infrastructure  and  services, 
especially  in  remote  areas.  The  CAP  is  not  the  only  policy  playing  a  role.  There  is  room  for 
improvement regarding synergies with other EU funds, as well as national and regional policies. 
Although  rural  development  aid  has  more  potential  to  support  social  inclusion  for  the  most 
vulnerable groups, the overall effectiveness of the CAP in this respect could be improved with 
better targeting.  

2. Efficiency 

The  excessive  administration  associated  with  applying  the  CAP  support  schemes  –  for  both 
beneficiaries  and the authorities  – is considered to be the main hindrance to  greater efficiency. 
This relates mainly to rural development measures. 

Overall, direct payments are delivered quite efficiently, with a relatively low administrative 
burden  and  swift  application  and  payment  processes.  However,  these  payments  are  not 

 
 
particularly  targeted  towards  the  social  aspects  of  territorial  development  or  the  needs  of 
vulnerable or socially-excluded rural groups.  

3. Coherence 

The  way  CAP  measures  address  balanced  development 
internally  coherent  and 
complementary.  Overall,  they  are  consistent  with  other  EU  policies,  especially  with  European 
Regional  Development  Fund.  However,  consistency  with  national,  regional  and  other  EU 
policies  could  be  improved,  through  more  coordination  between  national,  regional  and  local 
groups.  

is 

4. Relevance  

The wide range of rural development measures make them particularly relevant, as they can be 
targeted  at  different  local  situations.  The  CAP  addresses  rural  needs  related  to  economic 
growth and development well, but social needs less so.  

CAP  support is  more  relevant  for farmers,  young people  and  people living  in  the most remote 
areas, but  poorly targeted  at  the needs  of  non-EU nationals,  other EU nationals,  ethnic groups, 
and the disabled.  

5. EU added value  

This evaluation and a series of studies concluded that greater poverty, land abandonment and 
rural decline would happen in the absence of the CAP, clearly highlighting the added value of 
having an EU-level policy in this field.