European Agricultural Fund for Rural Development

The fund supports three long-term objectives: fostering the competitiveness of agriculture and forestry; ensuring the sustainable management of natural resources and climate action; and achieving a balanced territorial development of rural economies and communities. It provides grants for investments, knowledge transfer, environmental measures, local development strategies, and support for rural businesses, farmers, SMEs, and local authorities. Through financial instruments, it also offers loans, guarantees, and equity for viable projects in agriculture, forestry, and rural areas.

Operating across all EU member states, the EAFRD is implemented under shared management between the European Commission (Directorate-General for Agriculture and Rural Development) and national authorities. For the 2021-2027 period, its total budget allocation is €95.5 billion, including €8.1 billion from the Next Generation EU recovery instrument. At least 30% of funding must support environmental and climate measures. Programmes are co-financed by EU and national budgets.

As a core element of the CAP, the EAFRD complements the first pillar's income support and market measures (financed by the European Agricultural Guarantee Fund) by focusing on structural, long-term improvements. It plays a central role in enhancing the sustainability, resilience, innovation, and vitality of rural areas throughout Europe while aligning with broader EU goals for green transition and territorial cohesion.