European Agricultural Fund for Rural Development

The European Agricultural Fund for Rural Development (EAFRD) is the EU’s primary funding instrument for supporting rural development, forming the “second pillar” of the Common Agricultural Policy (CAP). 

With a budget worth €95.5 billion, its central aim is to promote sustainable, competitive, and inclusive rural areas across the European Union, complementing the CAP’s first pillar of direct payments and market measures.

Objectives and Priorities

The EAFRD seeks to:

• Improve the competitiveness of agriculture.
• Encourage sustainable management of natural resources and climate action.
• Achieve balanced territorial development of rural economies and communities.

It also places strong emphasis on:

• Environmental protection and climate change adaptation.
• Job creation and economic diversification in rural areas.
• Social inclusion and improved quality of life for rural populations.

Types of Support

EAFRD support is delivered via:

• Grants: For investments in farms, agri-food businesses, rural infrastructure, environmental projects, and community initiatives.
• Financial Instruments: Including loans, guarantees, and equity, often with more favorable terms than standard market offerings. For example, guarantee funds can help farmers and agri-food SMEs access working capital and investment loans with reduced collateral requirements.
• Interest Rate Subsidies: To lower the cost of loans for eligible recipients.
• Technical Assistance and Training: For knowledge transfer, innovation, and capacity-building in rural communities.

Who Can Apply?

Eligibility varies by programme and call, but typical beneficiaries include:

• Farmers and agricultural SMEs.
• Processors of agricultural and non-agricultural products.
• Rural businesses, including micro and small enterprises.
• Community groups, charities, public bodies, and social enterprises in rural areas.
• Landowners and rural tourism operators.

Open calls

There are currently open calls under the European Agricultural Fund for Rural Development (EAFRD), but the specifics of available calls depend on your country or region. Since 2023, EAFRD funding is implemented through national CAP Strategic Plans, and each country or region manages its own calls for proposals according to local priorities and needs.

Check the EU Funding & Tenders Portal to see open and upcoming calls related to EAFRD.

Funding Areas

EAFRD supports a wide range of activities, such as:

• Business development and diversification (including non-agricultural activities).
• Modernisation of farms and processing facilities.
• Sustainable land management and environmental protection.
• Climate action and adaptation projects.
• Rural tourism and infrastructure.
• Innovation and cooperation projects (including LEADER/CLLD initiatives).

Application Process

• Two-stage process: Many EAFRD programmes require an initial expression of interest followed by a full application.
• Match funding: Most grants require co-financing from applicants, with funding rates varying by project type (e.g., up to 40% for business development, up to 100% for some non-profit infrastructure projects).
• Calls for proposals: Funding is often made available through targeted calls with specific deadlines and priorities.

Impact and Examples

Since its inception in 2007, EAFRD has funded tens of thousands of projects, delivering benefits such as:

• Improved food quality and supply chains.
• Enhanced environmental stewardship and climate resilience.
• Job creation and economic diversification in rural areas.
• Conservation of biodiversity and support for sustainable rural tourism.

Governance and Networks

• Managed by: European Commission (DG AGRI) in partnership with national and regional authorities.
• European Network for Rural Development (ENRD): Facilitates knowledge sharing, best practices, and improved effectiveness of RDPs across Member States.

EAFRD in Context

• Part of the European Structural and Investment Funds (ESIF): Alongside ERDF, ESF, Cohesion Fund, and EMFF.
• Transition to CAP Strategic Plans: From 2023, EAFRD funding is fully integrated into national CAP Strategic Plans, aligning rural development more closely with broader agricultural policy goals.