General country description
A. First pillar: implementation of CAP reforms (2003)
B. Second pillar: implementation of RDP measures during 2007-2013
C. Vision for the CAP beyond 2013: a short overview of the debate (at Member State level) on future CAP reform
D. Literature, sources, references
The comparative analysis provides a compact overview of CAP implementation across all 27 Member States and their visions of the future of the CAP

General country discription

Comparison with EU-25

Population, 2005 (*1,000,000): 0.5

0.1% of population in EU-25

Population density, 2003 (inh./km2): 174

118 in EU-25

GDP/capita, 2005 (PPS): 53,900

230% of GDP/capita in EU-25

Share agriculture in total employment, 2002 (%): 1

5% in EU-25

Share Utilized Agricultural Area in total land area, 2003 (%): 50

46% in EU-25 in 1998

Average farm size, 2005 (ha): 54

19 in EU-15

Number of farms, 2005 (*1000): 2.4

0.0% of farms in EU-25

Source: own calculations based on Eurostat

Distribution of farming types, 2005 (% of total)

Source: own calculations based on Eurostat

EU funding for the Single Payment Scheme (SPS)
and the second pillar, 2007-2013

Funding according to CAP budget including Bulgaria and Romania.
Sources: Agra Europe (2007); CEU (2006); EC (2007a)


A. First pillar: implementation CAP reform (2003)

A.1 Single Payment Scheme


SFP static hybrid (EC, 2007b)

Coupling measures

Complete decoupling, dairy premium in 2005.

Reason for selection

No information

A.2 EU budget for Single Payment Scheme (SPS) per year (National ceiling) 2005-2013

Source: 2005: EC (2006); 2006-2013: CEU (2006) and Agra Europe (2007)

Share of the farms that receive SPS of the total number of farms (% of total)

No information

Tradability of SPS

No information

A.3 Cross-compliance: Good Agricultural and Environmental Conditions (GAEC)

Selected standards of the GAEC

Summary of farmers’ obligations


Soil erosion

Minimum soil cover



minimum land management reflecting site-specific conditions

Prevention of ditch erosion Meadows (with slope> 12%) must not be ploughed


retain terraces

Terraces have to be retained

soil organic matter

standards for crop rotation where applicable

Obligation for crop rotation (at least 3 crops, only for farms with>50% arable land & < 0.75 manure units / ha) The humus balance must meet specified requirements

protection of permanent pastures


Authorization required for converting PP, newly created PP must be kept as such for 5 years

Minimum level of maintenance

retention of landscape features (lf)



avoiding the encroachment of unwanted vegetation on agricultural land

Prevent spread of unwanted vegetation through grazing or mowing Agricultural land must not be abandoned Plant cover on arable land needs to be cut once a year Minimum livestock density is 0.5 LU/ha


Reason for selection of cross compliance standards

No information.

A.4 Further reform of market regulations

No information.


B. Second pillar: implementation of RDP measures 2007-2013

B.1 Programme level and approval

There is one national RDP. The Rural Development Committee (consisting of representatives of the 27 Member States) has approved the RDP for Luxembourg on 20 September 2007.

B.2 Distribution of public budget over the axes (%)1)

axis 1: competitiveness

axis 2: environment and land management

axis 3: rural economy

Axis 4: Leader





1) Figures excluding Technical Assistance
Source: Own calculations based on Ministère de l´Agriculture, de la Viticulture et du Développement rural (2007)

B.3 Integration of Leader in axes 1, 2 and 3

Leader contributes most to axis 3.

B.4 Local Action Groups (LAGs)

There is an intention to create 5 LAGs, covering 1.488,64 km2 (compared to 4 LAGs in the previous period) (Ministère de l´Agriculture, de la Viticulture et du Développement rural (2007).

B.5 RDP budget 2007-2013 (million euros)

total public budget

% co-financing EAFRD1)

EAFRD budget

Contribution private sector

Total costs

National top-ups







1) % of co-financing may vary per axis
Source: Ministère de l´Agriculture, de la Viticulture et du Développement rural (2007)

B.6 Less Favoured Areas

Luxembourg is intended to design 116,000 ha as areas with handicaps other than mountain areas (Ministère de l´Agriculture, de la Viticulture et du Développement rural, 2007: 171). In 2005 123,000 ha was designed as Less Favoured Areas (LFA) (areas with handicaps other than mountain areas), which is 97% of UAA (CEU, 2005).

B.7 Drivers of RDP strategy

No information


C. Vision on the CAP beyond 2013

No information


D. Literature, sources, references

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