INSTITUTIONAL PROBLEMS OF STRENGHTENING THE ECOSYSTEM SERVICES FOR SMALLHOLDER FARMS IN THE NEW COMMON AGRICULTURAL POLICY

Abstract

In the Strategic Plan for the CAP 2023-2027, the goal of special importance is the strengthening ecosystem services. Eco-schemes are a new type of direct support intended for farmers taking additional actions to protect the environment and climate. The study undertakes an institutional and environmental assessment of the proposal to withdraw from implementing some of the assumptions included in the eco-schemes. As a result, the criteria for their availability turned out to be inadequate for smallholder farms. Farmers implementing eco-schemes are exposed to additional expenditures or reduced incomes due to the extensification of production. However, they may receive applicable financial compensation on the annual basis. The current, rather complicated system authorizing payments for 2023, meant that relatively not many farmers made such efforts. At the same time, this results in receiving approximately 50% of support from the direct payments comparing to the previous year. In this paper there has been suggested the need for modification of the eco-schemes with the special emphasis on smallholder farms. It was based on two pillars: technological and environmental, with a proposal of requirements that may be relatively easy to meet in practice.