Authors: Miranda García and Blanca Casares (AEIDL)
In June 2024, the European Evaluation Helpdesk for the CAP released a new guideline titled ”Assessing the effectiveness and efficiency of CAP income support instruments”. This guideline offers a comprehensive evaluation framework, including judgment criteria and technical guidance for quantitative analyses. With CAP income support interventions now incorporated into Member State CAP Strategic Plans (CSPs) for 2023-2027, their effectiveness and efficiency must be evaluated to comply with EU requirements for CAP assessment.
One common challenge managing authorities face in applying quantitative analysis methods to assess the impact of CAP income support interventions on farm income is the difficulty in obtaining robust and comprehensive databases to accurately measure the impact and efficiency of these interventions. Farm income is influenced by various factors and variables (e.g., farm turnover, costs, annual work units, production, size, market prices, income support, etc.). Although national-level databases exist in Member States, their lack of interoperability can sometimes hinder analyses and require the collection of additional primary data, which is both time-consuming and costly. The type of data available (e.g., aggregated data at the national level and individual data from a sample of farms) can also shape or limit the scope of the analysis.
To assist with this assessment, the guideline is structured into three chapters. The first chapter about preparing the evaluation includes sections on framing the evaluation, identifying CAP instruments for evaluation, and ensuring optimal conditions for evaluation. The second chapter discusses general principles of the assessment, effects on income levels, income volatility, and income disparities in farms supported, and the efficiency of interventions. The final chapter covers the method for netting out the CAP impact on farm income. In particular, it offers an overview of three quantitative approaches needed for calculating the Income Transfer Efficiency (ITE), enabling the assessment of the net change in impact indicators, as required by Regulation (EU) 2021/2115.
The document addresses various CAP income support interventions, including Basic Income Support for Sustainability (BISS), Complementary Redistributive Income Support for Sustainability (CRISS), Coupled Income Support (CIS), Direct support provided to areas facing natural or other area-specific constraints (ANC) and Area with Specific Disadvantages (ASD), and Complementary Income Support for Young Farmers (CIS YF).
This new guideline is valuable for the ongoing Tools4CAP project, which aims to equip Member States with necessary tools and methods for effectively designing and monitoring their CAP Strategic Plans. In this context, the Horizon Europe project has published a report identifying the data sources and monitoring technologies that are already in place in the agriculture sector and linked them to the data needs for CSPs monitoring and evaluation. Additionally, it has developed an online inventory of methods and tools used for the design, implementation and monitoring of CAP Strategic Plans.
For more information on implementation, evaluation, and innovation, and to explore relevant documents related to national CAP Strategic Plans, visit the Tools4CAP Practical Information site.