Croatia will send its National Strategic Plan for Agriculture to the European Commission before the end of this week, the Ministry of Agriculture announced on Monday.

The plan aims to increase the productivity and competitiveness of the Croatian agricultural industry while taking into account the climate and environmental goals of the new common agricultural policy (CAP), whose implementation starts in 2023, Tugomir Majdak, State Secretary at the Ministry of Agriculture, said at the presentation of the plan, adding that the plan will also encourage innovation in the agricultural and food sector.

The CAP strategic plan includes direct payments, sectoral support measures and rural development support measures and will put €3.6 billion at the disposal of Croatian farmers in the 2023-2027 period. The transitional regulation for 2021 and 2022 has ensured €1.75 billion for rural development measures, while €131 million has been secured for the implementation of reforms under the National Recovery and Resilience Plan.

According to Majdak, the CAP funding will be directed through three groups of objectives. The first group is aimed at increasing the competitiveness and productivity of agriculture, the second group will focus on achieving the climate and environmental ambition, while the third group concerns interventions aimed at achieving the social ambition and rural development.

Of the total financial envelope, 61 per cent will go towards sectoral interventions, 25 per cent will be directed at the environmental and climate ambition and 12 per cent at the social dimension and the demographic revitalisation of rural areas, Majdak said.

Majdak noted that the Croatian rural sector is lagging behind the EU average in competitiveness and productivity as rural areas in Croatia are facing negative demographic trends, depopulation and the lack of basic infrastructure.

That’s why it is important to work on increasing productivity and competitiveness, invest in the training of farmers and encourage them to form associations and join producer organisations. It is also important to encourage young people to engage in agriculture and to promote Croatian-made products, he added.

The National Strategic Plan for Agriculture is the key document for agricultural policy making and for absorbing funds from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development. It combines all interventions and measures designed to implement the common agricultural policy at national level.

The EU’s new common agricultural policy enters into force in 2023 and it in particular aims to strengthen biodiversity and compliance with EU environment and climate rules.

In their national strategic plans, all EU member states are required to set aside at least 35 per cent of the budget for rural development and allocate at least 25 per cent of direct payments for environmental and climate measures.

Croatia’s national strategic plan aims to increase the productivity of Croatian farmers by 60 per cent, double their average income, and increase the share of young farmers by 30 per cent and the share of the food industry in GDP by 20 per cent.