CAP funding for Hemp Farmers: a brief overview
We're back with some crispy info on the CAP. Until now, we covered reforms and seed certification.?
It's time to talk about another vital part of the Common Agricultural Policy: funds! (for European hemp farmers)
The European Green Deal
Before getting into details, let's look at the bigger picture.?
In recent years the EU has adopted what is known as the European Green Deal. Simply put, the deal is a set of proposals that will help the Union transition towards a more circular and green economy.
The main goal of the Green Deal is to reach zero greenhouse gas net emissions by 2050 and, in the process, transform Europe into a resource-effective economy.
What's in store for European hemp farmers?
The Common Agricultural Policy is the primary tool to put the Green Deal into practice for what concerns agriculture.
€386.6 billion have been allocated to the new CAP alone (2023-2027) to fund European farmers and help the Union move towards a more circular and sustainable economy.?
We'll explore the two pillars of the CAP funds later below. Let's first focus on the hemp industry.
Hemp farmers are getting and will get their share too. However, some rules need to be followed to access the funds.?
Two of them are imperative:
This is why we stressed the importance of getting hemp seeds certified. No certification amounts to no CAP funding.
But there's more, EU countries may grant hemp farmers Voluntary Coupled Support, VCS.
If you're wondering what on earth is VCS, stick with us.
When a specific agricultural sector or sub-sector faces some difficulties, an EU country may decide to grant targeted financial support (aka VCS) to that sector. The good news is: hemp is eligible.
How to get CAP funds with hemp
One of the main advantages of farming hemp is its versatility as a raw material, here’s a brief list of what you can make from hemp:
This should give you the idea. This versatility boils down to two main benefits for which hemp may be considered a valuable tool to tackle climate change and get funds from the CAP.
Hemp value chain
What makes hemp a strong candidate in the EU's fight towards a greener economy is its supply chain.
Each part of it is used in other supply chains. Stalks and fan leaves make biomass, flowers are then used for CBD products.?
On the other hand, hemp fiber is perfect for textiles, hempcrete, and other products.
One of the pain points for many industrial products is the waste their supply chain produces. On the contrary, the European Green Deal is pushing manufacturers towards a circular economy, where a supply chain is turned into a value chain: each link in the chain is either a product or a component of another product supply chain.
Hemp embodies the circular economy tenets in a literal fashion. This means that it can help the EU in transitioning towards a greener economy (and get CAP funds in the meanwhile).
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Hemp is a great carbon capturer
Carbon capture is the capacity to absorb CO2 from the atmosphere.?
Hemp is great at that, as one hectare of industrial hemp absorbs up to 15 tonnes of CO2. Some studies even suggest that hemp is even better than trees in absorbing CO2 every year (6 vs 15 tonnes).
This also means that hemp farmers, on top of getting CAP funds, can also get Carbon Credits, that is, they can compensate for the emissions of other, less sustainable, companies.
How the CAP funding system works
Ok, now we know why hemp could become one of the core players in the new European Green Deal.
So, let's say you are a hemp farmer, you comply with all the regulations and you would like to get funding, how would you get the money?
The CAP rests on two pillars
These are EAGF and EAFRD.?
EAGF
Stands for European Agricultural Guarantee Fund, it's the first CAP pillar and it's dedicated to supporting agricultural markets and providing income support for farmers. In the first case, the EAGF funds measures aimed at supporting agricultural markets, like intervention buying.?
In the second case, the EAGF funds sustainable farming methods and young farmers.
EAFRD
Stands for European Agricultural Fund For Rural Development, it's the second pillar of the CAP.
The main aim of the EAFRD is to improve European agriculture competitiveness on the global markets and to encourage sustainable management of natural resources.
The EAFRD can also invest in rural enterprises through loans, equity, or other financial tools.
Just in 2020, there were more than 6 million people receiving funds from CAP. Hopefully, more and more European hemp farmers will be able to join the ranks of the beneficiaries of CAP funds.
At Enecta Farm we're trying to pave the way towards a more hemp-centered EU agriculture.?
Certification, reforms and public funds are the tools that the hemp industry can exploit to keep on growing and maturing.
References