European Agricultural Fund for Rural Development

The European Agricultural Fund for Regional Development (EAFRD) is the instrument for financing measures aimed at improving the social, environmental and economic sustainability of rural areas (second pillar of the CAP).

Within the framework of the CAP strategic plans, the EAFRD provides support in the form of grants in relation to environmental, climate and other management commitments (e.g. organic production), natural constraints or other specific constraints of the area (e.g. mountain areas), specific disadvantages of the area as a result of certain mandatory requirements (e.g. Natura 2000), investments, including investments in irrigation infrastructures (agricultural, environmental, basic services, etc. ), establishment of young farmers and new farmers and start-up of new rural enterprises, risk management tools, cooperation, and knowledge sharing and information dissemination.

Furthermore, as foreseen by Community legislation, at least 5% of the total EAFRD contribution to each Member State’s strategic CAP plan will be reserved for the LEADER initiative – geared towards participatory local development, where local action groups design and implement strategies for the local development of their rural areas.

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Strategic Plan of the Spanish CAP (PEPAC)

The total public expenditure foreseen under the Strategic Plan of the Spanish CAP (PEPAC) for rural development interventions is € 8,314.32 million between 2023 and 2027, of which 5,403 M€ is from the EAFRD budget.

Almost half of this amount (47.8 per cent) relates to environmental interventions which include, inter alia, organic farming, aid to areas with natural or other specific constraints, and aid to areas with specific handicaps. On the other hand, in relation to cooperation, the LEADER initiative has a budget of EUR 816 million.

For the first time, a single plan (PEPAC) integrates the rural development measures of the seventeen autonomous communities, as well as the supra-regional measures that in previous periods were in the 17 Rural Development Programmes (PDRs) plus the National Rural Development Programme (PNDR).