(EAGGF) Part of the Guidance (for Objective 1) and Guarantee (for Objectives 2 and ) sections of the EAGGF, finance the EU's rural development policy. This aims to improve the efficiency of farm structures, to support investment in the food processing and marketing sector and to provide compensatory payments in less-favoured farming areas.
Services the several financial requirements of the Common Agricultural Policy (CAP). The Guidance Section provides support for agricultural restructuring and modernisation. The much larger Guarantee Section operates the common guaranteed price structure.
This fund finances the Common Agricultural Policy. The Guidance section finances price support measures, while the Guarantee Section grants subsidies for modernisation of farming and rural development measures. (See also Structural Funds.)
The EAGGF finances the common organisation of the agricultural markets, the processing of agricultural products and the structure of agricultural holdings. The Structural Funds have three priority Objectives, four Community Initiatives and the Rural Development Plan in Wales
The European Agricultural Guidance and Guarantee Fund (EAGGF), set up by Regulation No 25 of 1962 on the financing of the Common Agricultural Policy (as last amended by Regulation (EEC) No 728/70) consumes a large part of the general budget of the European Union.