On the first day of the meeting, ministers accepted the compromise arrangements for the CAP reform for 2023-2027. These arrangements are the result of tripartite negotiations between the EU Council, the European Commission and the European Parliament.

Works on the CAP legislative package, consisting of regulations on CAP strategic plans, on CAP financing, management and monitoring (the so-called horizontal regulation) and on the common organisation of agricultural markets, lasted for more than three years.

Poland has made its expectations and proposals clear since the beginning of the months-long negotiation process. Reaching a common position was not easy, especially due to the fact that the CAP is undergoing a major reform. From the beginning of works on the reform, the Polish position unequivocally indicated that the proposed solutions should take into account individual needs and expectations of member states, focus on the achievement of main objectives of the common agricultural policy and strive for a further simplification of the CAP. It was also stressed that the pace of works on the compromise must not be at the expense of the quality of the solutions worked out. In the end, it was possible to find a common position for all Member States, but also for the other co-legislators.

Although it does not include all our postulates, the agreement in its final form contains many solutions favourable for Poland.

Final arrangements taking into account the position presented by Poland on the CAP reform for 2023-2027

• Transfer of funds between CAP pillars - the adopted compromise allows for the transfer of up to 30% of funds from the 2nd CAP pillar to the 1st CAP pillar;
• Definition of an active farmer - farmers receiving direct support of up to EUR 5,000 will be eligible to be automatically considered active;
• Expenditure limit on production-related payments - we are satisfied with the arrangements for the level of financing of production-related payments, i.e. (13% +2%) for support for protein crops, although relating this support to the Water Framework Directive is unfounded;
• Redistributive payments and payments to young farmers - the compromise on redistributive payments and payments to young farmers should be perceived as a positive outcome. The proposed provisions leave sufficient flexibility to the Member States to ensure adequate support for family farms and generational change, taking into account local needs and specificities;
• Transitional National Aid - will be maintained in the following years and the reference period for granting this aid may be updated;
• Pillar II environmental expenditure limit - the level of environmental expenditure under Pillar II of the CAP was an important issue for Poland. The Parliament had proposed a limit of 37%. In the end it will not exceed 35%.Additionally, support for farms located in less-favoured areas will be included in the limit of expenditure on the environment in 50%. This percentage has been increased from the initial EC proposal by 10 percentage points;
• GAEC standards - we welcome the use of derogations from GAEC 9 and GAEC 8 standards for farms up to 10 ha of arable land;
• Trade issues and the sugar sector - we are pleased to note that joint Council, Parliament and Commission statements on trade issues and the sugar sector are part of the compromise. Poland has advocated strengthening the safety net and protection against imports from third countries, and these statements meet our expectations;
• Agricultural reserve - we welcome the adopted solutions regarding the agricultural reserve, which are in line with the arrangements on the multiannual financial framework for 2021-2027; The amount of the reserve will be EUR 450 million per year, in 2023 there will be no reimbursement to farmers for financial discipline for 2022, and unused funds will be allocated to the agricultural reserve. Farmers receiving up to €2,000 in direct payments will be exempt from financial discipline. The funding discipline is to be applied only after other budgetary sources have been exhausted.

Final arrangements relative to the CAP reform in the years 2023-2027, which Poland is critical about

• Alignment of strategic plans with the Green Deal - although the provisions concerning taking into account the Green Deal in strategic plans do not refer to quantified objectives of the "from farm to fork” and Biodiversity strategies, they will require adjustment of the already adopted strategic plans to the objectives of the above mentioned strategies after 2025;
• GAEC 9 Standard - we are not satisfied with the compromise regarding implementation of this standard. Setting a mandatory percentage of arable land only for non-productive areas may lead to the need to take some agricultural land out of production;
• Social conditionality - Poland opposed the very ambitious proposals of the Parliament to link CAP support to the observance of labour law within the framework of social conditionality. The compromise introduces a simplified approach that will be implemented from 2025 and will largely build on existing national arrangements.