CAP Compensation Payments

CAP Compensation Payments are financial benefits provided to farmers under the Common Agricultural Policy (CAP), a system by the European Union that supports agriculture. These payments help farmers cover costs or encourage sustainable farming practices. Essentially, they are government-funded subsidies aimed at ensuring food production, rural development, and environmental goals. The payments can be linked to land size, crop types, or specific farming activities, helping farmers maintain their livelihoods and contribute to a stable, affordable food supply across Europe.