The deductions were meant to finance the agricultural crisis reserve and to make sure that the overall ceiling of the European Agricultural Guarantee Fund (EAGF) was not overrun. Direct payment ceilings had to be established before an agreement was concluded on the EU budget for 2021-27, said the European Commission.

The crisis reserve of €487.6 million was not used in 2021 and together with some additional appropriations available for reimbursement, a large share of the amounts deducted from direct payments this year shall therefore be reimbursed to farmers by Member States from today.