It is with great pleasure that I welcome you to the offices of the Cyprus Agricultural Payments Agency (CAP) and to today's press conference.
The Agency has achieved all the targets it had set for this year. One of the key points of the Agency's strategic planning is to keep our farmers and livestock farmers fully informed about all the possibilities of obtaining funds through the subsidy schemes. As well as providing in-depth information to our young people who want to pursue either farming, livestock or agro-processing. Your help in this direction is of the utmost importance and for that I thank you very much.
DIRECT PAYMENT GRANTS
Single Expansion Grant
The payment of the Direct Payments of the Single Application for the year 2022 has been substantially completed despite the fact that the time limit set in the respective European Regulations as the deadline for payment of these payments is 30 June 2023. We can praise the staff of the CFCA that as a consequence of its long-lasting effort, it has made the Agency one of the few that, this year in particular, has managed to grant these aids by 15 December. Some €47 million have been granted to 31 000 farmers and stockbreeders. A further €6 million has been paid to around 27,000 beneficiaries through Measure 13 of the Rural Development Programme 2014-2020, which concerns support for areas with natural or other handicaps.
Implementation of the Single Application for Extensive Payments through Monitoring of Agricultural Land
With the receipt of the Single Application for Extensive Payments 2022, the CFCA, implemented a Control System through Monitoring of Agricultural Land for the Single Area Payment Scheme (SAPS). The Agency, from a very early stage, has been aware of the technological revolution that is taking place in its areas of responsibility. Without its technological harmonisation, the maximisation of payments to Cypriot farmers would not be ensured.
It is for this reason that, although it was not compulsory in 2022, the CAA chose to implement the Agricultural Area Monitoring system. Through this system, satellite monitoring of all requested parcels was achieved, almost on a 15-day basis, as to their eligibility. Most importantly, all this information was channelled to Cypriot farmers in time for them to make appropriate use of it and adjust their application, up to a few days before the final processing of the applications by the Agency. As a result, many applicants adjusted their applications in accordance with the findings of this system and in this way avoided penalties and reductions in the amount of their aid, which the Agency would otherwise have been obliged to impose if they did not adjust their applications appropriately. Of course, this system, whose implementation becomes mandatory for all Member States from the year 2023, will continue to be enriched on the basis of the acquired expertise of the Agency and provide important information to Cypriot farmers for their own benefit.
Through the Copernicus Sentinel satellites, the CFCA receives images from all over Cyprus every 5 days and, using specialised algorithms and indicators, checks the existence of agricultural activity in the requested parcels. Applicants should ensure that they monitor and check the results in the CAA's online application system (EAS), and there and where they disagree, they are given the opportunity to send a geo-referenced photo through the special applications developed by the CAA, proving the eligibility of their parcel.
All application parcels will also be checked through the Sentinel System. If potential non-compliance is found, the applicant will receive a notification via a personal message (SMS) to the mobile phone number registered in his/her application. He is also given the opportunity to amend his application accordingly without penalty until 30 October 2022.
The introduction of monitoring controls for the CFCS in 2022 is the first step towards the implementation of the Area Monitoring System, which will be mandatory in the Common Agricultural Policy from 2023.
Agri-Environmental Measures
In the year 2022, the Agency processed and paid subsidies to approximately 7,000 beneficiaries of the Agri-Environmental Schemes of Measure 10 for the applications of the year 2021, for a total amount of EUR 7 million.
With regard to Measure 11 of Organic Agriculture, subsidies amounting to EUR 3.6 million have been paid to approximately 1,155 beneficiaries of the Measure for the applications of the year 2021.
The payment of the subsidies related to the applications of the above mentioned Measures for the year 2022 is expected to start early in the new year.
Measure 14 - Animal Welfare
During 2022, the Agency has paid aid of approximately EUR 2 million to approximately 300 beneficiaries of Measure 14 for applications for the year 2021.
Payment of aid for the year 2022 is expected to start in February.
Capitation payments for sheep and goat farming
Due also to the coordinated effort carried out by all bodies and competent authorities to adapt the sheep and goat sector to the new circumstances brought about by the beneficial registration of the haloumi name, the sheep and goat sector is the focus of the attention of both the Agency and the Government's agricultural policy.
State aid in the sheep and goat sector of €5 million has already been granted in 2022 to around 2,000 sheep and goat farmers. In addition, the processing of the relevant applications concerning the Voluntary Coupled Support for Sheep and Goats for the year 2022 has been completed by the Agency and the bank transfers will be sent to the beneficiaries within the week. €3.5 million - European funding (Direct Payments) - will be granted to approximately 900 sheep and goat farmers benefiting from the 2022 Voluntary Coupled Support Scheme for sheep and goats.
STATE AID
Due to the Covid-19 pandemic and the Russian invasion, as you all know, the whole spectrum of agricultural activity has been severely affected and the costs of every agricultural activity have been significantly increased.
The State's actions to mitigate this problem were immediate. By decisions of the Council of Ministers, the following emergency aid was paid in 2022:
- Emergency state aid to support the livestock sector, due to the effects of Covid-19 disease. The aid was paid to the following sectors as follows:
- Pig farming: EUR 2,5 million,
- Poultry farming: EUR 900,000,
- Cow farming: EUR 1,5 million
- Cattle farming: EUR 22,000.
- Transitional national aid in the Cow sector of EUR 1,1 million
- Transitional national aid in the Sheep and goat sector of EUR 5 million.
In addition and in the next period until the end of January the payment of the following aids is planned:
Categories
[TD]
Maximum total aid (€)
[/TD] [/TD][TR] [TD]
[A](a) Potato producers
[/TD] [TD]3.500.000
[/TD] [/TR] [TR] [TD](b) Growers of deciduous crops
[/TD] [/TD] [TD]1.000.000
[/TD] [/TR] [TR] [TD](c) Growers of eligible vegetable crops
[/TD] [TD]1.900.000
[/TD] [/TR] [TR] [TD](d) Poultry farming - egg production
[/TD] [/TD] [TD]400.000
[/TD] [/TR]
- Payment of de minimis aid in respect of the West Nicosia Farmers' Support Scheme to compensate for high water costs.
- Announcement of Measure 22 of RDP 2014-2020 - Exceptional Aid to support farmers affected by the effects of the Russian invasion of Ukraine, which is under final approval by the EU.
The total eligible support amount per sector is:
- Cereals → €2.4 million
- Sheep and goats → €2,8 million
Rural Development Investment Measures
For Rural Development Investment Measures, the Cyprus Rural Payments Agency, in cooperation with the Managing Authority of the Rural Development Programme 2014 - 2020, proceeded in February this year with the third Call for Proposals of Scheme 4.1, the first call for the Scheme 5.2 and the second call for applications of Regime 6.1. The receipt of applications took place from 7 February 2022 to 5 September 2022, for the first time electronically via the website of the CAFP.
Immediately after the end of the call, the administrative checks for the applications of Regime 5.2 - "Support for investments for the restoration of agricultural potential", which was activated after the devastating fires that broke out in the summer of 2021, in order to contribute to support for the restoration of the agricultural potential of the affected farmers. As a result, within just three weeks after the closing date of the call, we had managed as an Agency to complete the examination of applications and start sending out the letters of preliminary approval to all applicants whose applications were complete. At the same time, the period for submitting Payment Applications has also started, which can be submitted to our District Offices until December 29, 2023. We are pleased to announce that the first payments have already been made during December.
Regarding the third notice of Scheme 4.1 - "Investments improving the overall performance and viability of agricultural holdings" and the second call of Scheme 6.1 - "Support for the first establishment of young farmers" the interest shown by our farmers was unprecedented and exceeded all expectations. The great interest of farmers indicates the great need for investment that exists in most sectors of agriculture/livestock farming, but also the success of the information campaign carried out before and during the call, through which all potential beneficiaries were informed about the provisions of the Schemes.
The great response has shown that the budget of the Schemes is very small. The CMO, realising at an early stage the extent of the insufficiency of the available funds, and bearing in mind that investment in the primary production sector by supporting such a key sector can give a significant boost to rural development, is taking all necessary steps, making every effort to increase the budgets in order to approve as many applicants as possible, with priority being given to young farmers.
At the same time, payments for the previous calls for proposals under the specific schemes are continuing, depending on the progress made by applicants in implementing their investments. Within the year, EUR 8 million have been paid for all Rural Development Investment Measures.
From 28/11/2022 to 12/12/2022, Measure 22 of the RDP 2014-2020 was Announcement of measure 22: 'Exceptional support for farmers affected by the consequences of the Russian invasion of Ukraine - Action C "Xynisteri" and "Local Black". It concerns vineyards of the 'Xynisteri' and 'Nopio Black' varieties, whose grape production from the 2022 harvest was not placed on the market and will remain unharvested until its complete physical destruction. The amount to be made available in the first half of 2023 is €300,000.
Common Market Organisation Measures
For the Single Common Market Organisation Measures, as regards the notifications made so far this year, the Cyprus Rural Payments Agency, in cooperation with the Department of Agriculture, has proceeded with the notification of the following measures:
National Support Programme for the Vine and Wine Sector (NSP):
For the National Support Programme, during 2022, the following measures were announced:
a) Restructuring and conversion of vineyards
b) Green Oak
c) Investments in the wine sector.
With the payment of the total amount of €4.465.000 to the beneficiaries, 100% of the fund approved by the European Commission for Cyprus has been disbursed.
Measure CMO3: "Support to Recognised Fruit and Vegetable Producer Organisations based on their Operational Programmes". Interested parties can submit their applications from 2 January 2023 until 15 February 2023.
Measure CMO 8: "Beekeeping Programme". Payments relating to the year 2022 have been completed. The new call is expected to be made under the New National Strategic Plan, and eligible actions for subsidies will start from 1/1/2023.
Measure CMO12: "Private Storage of Pig Meat." Interested parties have submitted their applications from 5 April 2022 to 29 April 2022. Each application was for a minimum quantity of at least 10 tonnes of boneless products and 15 tonnes of other products. The payments have been completed.
Measure CMO 15: 'Exceptional adjustment aid for pig farmers' Those concerned submitted their applications from 6 June 2022 to 17 June 2022 and the payments have been completed.
Measure CMO 16: 'Cognitive aid programme for the supply of fruit, vegetables, bananas and milk to educational establishments'. Payments for the 2021-2022 school year have been completed. The announcement for the school year 2022-2023 is expected in February 2023.
OPSA measure 1c: "Green harvesting in wine producing vineyards 2022 - 2023". The measure is expected to be re-launched in April 2023.
Within the year, approximately €7 million has been paid out for all CMO measures.
In conclusion, it should be mentioned that the following Measures / Schemes of Rural Development and Common Market Organisations are expected to be announced immediately and within 2022:
Scheme 1.3: "Short-term exchanges for farm and forest management and visits to farms and forests", which will be announced in January 2023.
OPAS Measure 1b: "Restructuring and conversion of vineyards 2022 - 2023" and will concern Action 1b.3 Construction / Repair of Traditional Dry Stone Walls in Existing Vineyards. The submission of applications by interested parties started on 09/12/2022 and will be completed by 29/12/2022.
In addition, in February 2023, the payment of exceptional state aid due to the consequences of Russia's invasion of Ukraine is planned for the sectors of recognized groups and organizations of producers of plant production, sheep and goat farmers and cooperative companies active in the respective regions and for corresponding products of plant production and cooperative companies active in the production and sale of agricultural products.
In addition, in February 2023, the payment of exceptional state aid due to the consequences of Russia's invasion of Ukraine is planned for the sectors of recognized groups and organizations of producers of plant production, sheep and goat farmers and cooperative companies active in the respective regions and for corresponding products of plant production and cooperative companies active in the production and sale of agricultural products. The amount allocated corresponds to €950 000.
Clearance of Accounts for the financial year 2021
The Agency, following its annual audit by the Certifying Body, which is Deloitte, and on the basis of the findings of that audit and in particular those findings relating to the results of on-the-spot audits previously carried out by the Agency itself, has accepted an additional investigation by the EU itself.
The Agency has responded to all requests from the relevant EU authorities and, as in all such cases, has endeavoured to develop the maximum degree of cooperation in order to correct any omissions of its own.
This investigation has very recently been completed. By letter, the Directorate General for Agriculture and Rural Development informed the Cypriot authorities of its closure, stating that it has taken note of the corrective measures taken by the Cypriot authorities and that they have initiated a recovery procedure. Therefore, this investigation is considered closed without the imposition of a financial correction, i.e. without a fine.
I would be remiss if I did not mention the intense efforts of the Agency's staff who handled the matter with particular professionalism and interest.
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(EP/EHR)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
Source- Emergency state aid to support the livestock sector, due to the effects of Covid-19 disease. The aid was paid to the following sectors as follows:
