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The European agricultural fund for rural development (EAFRD) finances the EU's contribution to rural development programmes (RDPs). It is the “second pillar” of the CAP, with an allocated budget of €95.5 billion. This includes €8.1 billion from the next generation EU recovery instrument to help address the challenges posed by the COVID-19 pandemic. It consists of measures and projects that contribute to the EU-wide objectives of:
• improving the competitiveness of agriculture
• encouraging sustainable management of natural resources and climate action
• achieving a balanced territorial development of rural economies and communities
• Programmes are prepared on a national or regional basis, and must work towards specific targets relating to the EU’s rural development objectives.