REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on EAGF expenditure Early Warning System 1-6/2024
Date: 2024-07-18
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: EAGF, aid to agriculture, audit, budget, budgetary expenditure, budgetary resources, common agricultural policy, implementation of the budget

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  EN 

   EUROPEAN COMMISSION  Brussels, 18.7.2024  COM(2024) 319 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on EAGF expenditure                 Early Warning System 1-6/2024  
 
 
1. 

THE 2024 EAGF BUDGET PROCEDURE 

On 22 November 2023 the European Parliament adopted the 2024 general budget of the 
European  Union.  The  budget  for  the  European  Agricultural  Guarantee  Fund  (EAGF) 
amounts to EUR 40 517 million of commitment appropriations and EUR 40 505 million 
of  payment  appropriations.  The  reason  for  the  different  amounts  for  both  types  of 
appropriations  is  the  use  of  differentiated  appropriations  for  certain  measures  directly 
implemented  by  the  Commission.  These  relate  mainly  to  promotion  measures  for 
agricultural products and to policy strategy, coordination and audit measures. 

2. 

REVENUE ASSIGNED TO THE EAGF 

Based  on  the  provisions  of  Article 45  of  Regulation  (EU)  2021/2116,  revenue 
originating  from  financial  corrections  under  accounting  and  performance  clearance 
decisions  and  irregularities  constitutes  revenue  assigned  to  the  financing  of  EAGF 
expenditure.  

According to Article 45(2), assigned revenue can be reused to cover the financing needs 
of  any  EAGF  expenditure.  The  assigned  revenue  collected  and  left  unused  within  the 
budget year is automatically carried over to the following budget year1. 

The 2024 EAGF budget includes: 

• 

the  Commission's  estimates  of  the  financing  needs  for  market  measures,  direct 
payments and other expenditure under direct and indirect management 

• 

the estimates of assigned revenue to be collected in the course of the budget year. 

In  its  proposal  for  the  2024  EAGF  budget  appropriations,  the  Commission  took  into 
consideration the total expected assigned revenue. For the 2024 budget the Commission 
requested  a  level  of  appropriations  calculated  by  deducting  the  estimated  assigned 
revenue from the estimated needs. The Budgetary Authority adopted the EAGF budget 
for 2024 taking account of the expected assigned revenue.  

At the time of establishing the 2024 budget, the Commission’s estimate of the available 
assigned revenue was EUR 739,8 million out of which EUR 339,8 million carried over 
from Budget 2023. The Commission considered this carried-over amount and estimated 
revenue to be collected in 2024 when requesting the appropriations for the basic income 
support for sustainability (item 08 02 04 01). The sum of the voted appropriations  for 
this scheme and the estimated assigned revenue is equal to EUR 19 022 million.  

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Art 12(4)(b) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council on 
the  financial  rules  applicable  to  the  general  budget  of  the  Union  determines  that  appropriations 
corresponding  to  internal  assigned  revenue  may  be  carried  over  only  to  the  following  financial  year. 
Therefore,  in  the  interests  of  sound  budget  management,  this  assigned  revenue  is  generally  used  first 
before the voted appropriation of the concerned budget article. 

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The assigned revenue eventually carried over from 2023 was marginally higher at EUR 
340.3 million. 

3. 

TABLE PROVISIONAL CONSUMPTION ON 31/03/2024 

This  report presents  the  provisional  implementation  of the 2024 budget  for the EAGF 
on 31/03/2024, with details given in the below table.  

A comparison  is  made of the implementation  level  with the expenditure profile of the 
early  warning 
of  
in 
Regulation (EU) 2021/2116. 

accordance  with  Article 

system 

set 

19 

up 

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Appropriations Budget (2)Consumption from November to MarchUtilisationEUR mioEUR mio%%EUR mio%EUR mioABC=B/ADE=D*AF=C-DG=B-EExpenditure40.517,331.028,376,6%77,1%31.234,9-0,5%-206,608 01Support administrative expenditure of the "Agriculture and Maritime Policy" Cluster4,91,122,6%88,1%4,3-65,5%-3,208 01 01Support expenditure for the "European Agricultural Guarantee Fund"4,91,122,6%88,1%4,3-65,5%-3,208 02European Agricultural Guarantee Fund (EAGF)40.512,431.027,276,6%77,1%31.230,6-0,5%-203,408 02 01Agricultural reserve (* p.2)516,5375,372,7%08 02 02Types of interventions in certain sectors under the CAP Strategic Plans1.294,2146,111,3%22,2%287,0-10,9%-141,008 02 02 01Fruit and vegetables sector335,060,117,9%21,4%71,5-3,4%-11,508 02 02 02Apiculture products sector60,03,05,0%13,4%8,1-8,4%-5,108 02 02 03Wine sector835,077,79,3%23,1%193,1-13,8%-115,408 02 02 04Hops sector2,22,2100,0%100,0%2,20,0%0,008 02 02 05Olive oil and table olives sector45,01,12,4%12,0%5,4-9,5%-4,308 02 02 06Other sectors17,02,011,8%39,6%6,7-27,9%-4,708 02 03Market-related expenditure outside the CAP Strategic Plans1.481,6618,041,7%37,5%555,34,2%62,708 02 03 01POSEI and Smaller Aegean Islands (excluding direct payments)226,0132,858,8%59,8%135,2-1,1%-2,408 02 03 02Promotion of agricultural products — Simple programmes under shared management80,727,433,9%27,3%22,06,7%5,408 02 03 03Promotion of agricultural products — Multi-programmes and actions implemented by the Commission under direct management96,90,80,8%0,0%0,00,8%0,808 02 03 04School schemes180,089,749,8%44,2%79,65,6%10,108 02 03 05Olive oilp.m.-0,108 02 03 06Fruit and vegetables715,0133,118,6%21,4%152,7-2,7%-19,608 02 03 07Wine183,0234,2128,0%90,6%165,837,4%68,408 02 03 08Apiculturep.m.0,008 02 03 09Hopsp.m.0,008 02 03 10Public and private storage measuresp.m.0,008 02 04Direct payments types of interventions under the CAP Strategic Plans36.296,229.541,981,4%82,7%30.004,9-1,3%-463,008 02 04 01Basic income support for sustainability (** p.2)18.282,217.313,994,7%96,5%17.645,8-1,8%-331,908 02 04 02Complementary redistributive income support for sustainability3.917,03.708,794,7%95,1%3.726,2-0,4%-17,508 02 04 03Complementary income support for young farmers670,0547,281,7%81,1%543,70,5%3,508 02 04 04Schemes for the climate and the environment 8.698,05.008,757,6%53,0%4.607,74,6%401,008 02 04 05Coupled income support4.485,02.928,865,3%76,5%3.432,8-11,2%-503,908 02 04 06Crop-specific payment for cotton244,034,714,2%20,0%48,8-5,8%-14,208 02 05Direct payments outside the CAP Strategic Plans444,0327,173,7%68,1%302,35,6%24,708 02 05 01POSEI and Smaller Aegean Islands (direct payments)444,0286,364,5%68,1%302,3-3,6%-16,008 02 05 02Single area payment scheme (SAPS)p.m.2,908 02 05 03Redistributive paymentp.m.0,408 02 05 04Basic payment scheme (BPS)p.m.17,608 02 05 05Payment for agricultural practices beneficial for the climate and the environmentp.m.13,508 02 05 06Payment for farmers in areas with natural constraintsp.m.0,008 02 05 07Payment for young farmersp.m.0,508 02 05 08Crop-specific payment for cottonp.m.0,408 02 05 09Voluntary coupled support schemep.m.5,008 02 05 10Small farmers schemep.m.0,408 02 06Policy strategy, coordination and audit379,418,74,9%13,0%49,2-8,1%-30,608 02 06 01Financial corrections in favour of Member States following clearance of accounts and conformity clearance decisions250,90,00,0%0,0%0,00,0%0,008 02 06 02Settlement of disputesp.m.0,008 02 06 03EAGF — Operational technical assistance128,518,714,5%38,3%49,2-23,8%-30,608 02 99Completion of previous programmes and activities100,50,20,2%31,6%31,8-31,4%-31,6(1) Financial year = 16/10/2023 to 15/10/2024 but expenditure under Commission direct management possible until 31/12/2024. (2) It concerns the commitment appropriations.Budget 2024 (1)PROVISIONAL CONSUMPTION OF THE EAGF APPROPRIATIONSSituation on 31/03/2024in Eur millionConsumption profile as at MarchGap between implementation and profile 
 
 
4. 

COMMENTS ON THE 2024 AGRICULTURAL RESERVE   

Budget  2024  included  an  amount  of  EUR  832  million  for  the  agricultural  reserve, 
including a carry-over of EUR 315,5 million from Budget 2023.  
Two measures, totaling EUR 98.3 million, have been adopted2. This will exclusively be 
financed under the 2024 agricultural reserve, thus under Budget 2024.  

As regards the expenditure, a total of EUR 375,3 million have been declared so far by 
Member States. The amount paid relates to the last two exceptional measures (packages 
two and three) adopted under Budget 2023, but partially financed under Budget 2024. 

5. 

COMMENTS ON THE PROVISIONAL IMPLEMENTATION OF THE 2024 EAGF BUDGET 

For  most  of  the  types  of  interventions  in  certain  sectors,  the  implementation  of  the 
expenditure provided for in the CAP strategic plans started in financial year 2023. The 
first payments for the direct payments types of interventions under the plans were made 
in  financial  year  2024.  This  means  that  virtually  no  historical  data  were  available  to 
draw  up  the  expenditure  profile  of  these  interventions  for  the  budget  year  2024.  The 

2 Commission Implementing Regulation (EU) 2023/2820 of 15 December 2023 providing for emergency financial 
support for the agricultural sectors affected by natural disasters in Greece and Slovenia, (OJ L, 2023/2820, 
18.12.2023, ELI: http://data.europa.eu/eli/reg_impl/2023/2820/oj) ; Commission Implementing Regulation (EU) 
2024/453 of 5 February 2024 on exceptional market support measures for the eggs and poultrymeat sectors in Italy 
(OJ L, 2024/453, 6.2.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/453/oj). 

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Appropriations Budget (2)Consumption from November to MarchUtilisationEUR mioEUR mio%%EUR mio%EUR mioABC=B/ADE=D*AF=C-DG=B-E(*) Agricultural reserve including the 315,5 million euro carried over from financial year 2023:08 02 01Agricultural reserve - including carry-over from previous financial year832,0375,345,1%(**) For information only: expenditure against original appropriations and assigned revenue08 02 04 01Basic income support for sustainability - including assigned revenue19.022,017.313,991,0%96,5%18.359,9-5,5%-1.045,9Assigned Revenue739,8606,281,9%6 2 0 0European Agricultural Guarantee Fund — assigned revenue estimated to collect in the financial year400,0265,966,5%Assigned revenue carried over from previous financial year339,8340,3100,0%(1) Financial year = 16/10/2023 to 15/10/2024 but expenditure under Commission direct management possible until 31/12/2024. (2) It concerns the commitment appropriations.Budget 2024 (1)PROVISIONAL CONSUMPTION OF THE EAGF APPROPRIATIONSSituation on 31/03/2024in Eur millionConsumption profile as at MarchGap between implementation and profile 
 
 
 
 
 
 
monthly  profile  for  this  expenditure  is  therefore  based  on  observed  past  profiles  for 
similar  expenditure  on  market  sectors  and  direct  payments  outside  the  strategic  plans, 
and it also takes into account the actual expenditure for the “plan” interventions made in 
the first two months of the 2024 financial year. 

The provisional execution of the 2024 EAGF budget appropriations, for the period up to 
31 March 2024, is very close to the calculated expenditure profile (-0.5 % points).  

The expenditure for nearly all sectoral types of interventions under the plans (08 02 02) 
shows  a  downward  deviation  from  the  profile,  but  to  a  smaller  extent  than  in  the 
previous financial year.  

An amount of EUR 606.2 million of assigned revenue (6 2 0 0) is already available and 
additional amounts are expected to be collected in the course of the financial year. 

At  present,  the  Commission  expects  that  the  voted  appropriations  together  with  the 
amount of assigned revenue that will be available by the end of the budget year will be 
sufficient to cover all expenditure. 

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