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Capping

Following the reform of the Common Agricultural Policy for the period after 2013, member states may choose to ʽcap,ʼ i.e. to limit, the amount of the Basic Payment that any farmer receives. The funds ʽsavedʼ under this mechanism stay in the member state concerned and are transferred to the Rural Development envelope. Capping is voluntary for member states and is a specific application of degressivity (see: Modulation, Transfers between pillars).

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