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Glossary

Degressivity

In the context of the reform of the Common Agricultural Policy for the period after 2013, the direct support (basic payment scheme and single area payment scheme) that any farmer is entitled to receive shall be reduced by at least 5% of the amount of the payment above EUR 150 000. In order to take employment into account, the farmer can deduct the costs of salaries in the previous year (including taxes & social security contributions) before this reduction is applied. Member states using more than 5% of their annual national ceiling to grant a redistributive payment are not required to apply this reduction. The funds thus ʽsavedʼ stay in the member state concerned and are transferred to the Rural Development envelope (see: Capping, Modulation, Transfers between pillars).

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