European Agricultural Guidance and Guarantee Fund (EAGGF)
The European Agricultural Guidance and Guarantee Fund, known by its acronym as EAGGF, was a European Union fund whose main objective was to provide funds to support rural development and the adjustment of agricultural structures.
The European Agricultural Guidance and Guarantee Fund, popularly known as EAGGF, was a fund created within the framework of the European economic and social cohesion policy. This fund, endowed with resources by the different countries of the European Union, focused on the endowment of resources to support development in rural environments, as well as the adjustment of the different agricultural structures that these territories present.
For this, the European Agricultural Guidance and Guarantee Fund had funds to undertake investments in agricultural holdings throughout Europe, for example. In the same way, it helped in the installation and consolidation of young farmers, and in their training for the correct development of future agricultural practice.Likewise, this fund assisted many producers in marketing, offering networks and resources for marketing; promoting, incidentally, its transformation and quality production. And all this, while promoting agri-environmental measures for the development of a sustainable agricultural practice.
This fund was made up of two sections: Guidance and Guarantee.
Traditionally, the financing of the common agricultural policy (CAP) was carried out through a single fund, the European Agricultural Guidance and Guarantee Fund (EAGGF). However, this was abolished on January 1, 2007. The European Union, as of that date, divided said fund in two, together with its powers and resources. These substitutes were the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).
What was the EAGGF doing? What is the CAP?
As we have said before, the main function of the EAGGF was the coordination and direction of the CAP, or what we know as the common agricultural policy.
The common agricultural policy (CAP) is a set of policies and actions that the member countries of the European Union have within the field of agriculture and livestock.
Through the measures that make up the CAP, the EAGGF established a system of subsidies to the rural sector in the continent, which tried to improve its exploitation.
Since its creation in January 1962, the common agricultural policy (CAP) was articulated through said fund, which was abolished in 2007, while the substitutes were created: the European Agricultural Guarantee Fund (EAGF) and the European Fund. Agricultural for Rural Development (EAFRD).
The European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD)
In 2007, a new regulation came into force that divided the European Agricultural Guidance and Guarantee Fund (EAGGF) in two, the EAGF and the EAFRD.
On the one hand, the EAGF finances or, on occasions, co-finances, together with the Member States, the expenses of the common organization of the markets (CMO). It also co-finances direct aid to farms, and the Union's contribution to information and promotion actions for agricultural products on the internal market and in third countries. This, as well as various specific expenses of the Union, such as veterinary actions and the collection and use of genetic resources.
On the other hand, with regard to aid for rural development through the EAFRD, we must know that this fund co-finances the improvement of the competitiveness of the agricultural and forestry sectors. Likewise, it also co-finances agri-environmental measures, an increase in the quality of life in rural areas and the promotion of the diversification of the rural economy. All this, as well as capacity building at the local level.
In this way, the common agricultural policy (CAP), from January 1, 2007, began to be articulated through these two funds, extinguishing forever the European Agricultural Guidance and Guarantee Fund (EAGGF).