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European Agricultural Fund for Rural Development (EAFRD)

Financial instruments

15 June 2025

European Agricultural Fund for Rural Development (EAFRD)

1. Healthy, balanced and sustainable diets for all European consumers

2. Prevention and reduction of food loss and waste

3. A climate - neutral food chain in Europe by 2050

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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.

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Related Organisation(s)

European Commission - DG COMM

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Geographical descriptors

EU-27

Organisation Type

EU Institutions

  • CoC aspirational objectives

    • 1. Healthy, balanced and sustainable diets for all European consumers

    • 2. Prevention and reduction of food loss and waste

    • 3. A climate - neutral food chain in Europe by 2050

    • 4. An optimised circular and resource-efficient food chain in Europe

    • 5. Sustained, inclusive and sustainable economic growth, employment and decent work for all

    • 6. Sustainable value creation in the European food supply chain through partnership

    • 7. Sustainable sourcing in food supply chains

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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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European Agricultural Fund for Rural Development (EAFRD)

T he European Agricultural Fund for Rural Development ( EAFRD) is the second pillar of the EU's Common Agricultural Policy (CAP) funding instrument .
Categories
2. Prevention and reduction of food loss and waste 3. A climate - neutral food chain in Europe by 2050 4. An optimised circular and resource-efficient food chain in Europe +3 more