Financial instruments
15 June 2025
European Agricultural Fund for Rural Development (EAFRD)
Financial instruments
15 June 2025
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The European Agricultural Fund for Rural Development (EAFRD) is the second pillar of the EU's Common Agricultural Policy (CAP) funding instrument.
Editorial team
European Commission - DG COMM
Topics
EU-27
EU Institutions
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Agri-food strategic objectives
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Healthy and sustainable diets
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Food loss and waste
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A climate – neutral food chain
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Circular and resource-efficient food chain
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Sustainable economic growth and employment
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Sustainable food supply chain
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Sustainable sourcing
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Share
The EAFRD budget for 2021 -2027 amounts to 95.51 billion euros, with an addition of 8.1 billion euros.
Support for investments can be structured in the following way:
infrastructure (5.5 bn €);
off-farm non-productive (2.5 bn €);
off-farm productive (6.1 bn €);
on farm non-productive investment (10.8 bn €);
on farm productive investment(Euro 1 3 bn).
Financial instruments (loans and guarantees) account for 1.0 billion euros, and Member States can modify these financial allocations throughout the implementation of their CAP Strategic Plans, depending on the uptake of these interventions and strategic choices.
The European Commission, Local authorities, and financial entities in each Member State are responsible for the funding, which will last from 2021 to 2027.
The European Agricultural Fund for Rural Development (EAFRD) grant budget allocates EU funds. Each Member State or local authority complements the EAFRD funds with additional resources, which manage the total funding. Investment funding is distributed via grants, financial instruments (mostly loans and guarantees), or a combination of the two.
REGULATION (EU, Euratom) 2018/1046 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 July 2018 on the financial rules applicable to the general budget of the Union (link below)
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