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Capping

The 2013 reform of the Common Agricultural Policy granted member states the option 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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