Compensatory Allowance 2024–2027
In Austria, around 70 percent of the national territory is classified as a disadvantaged area, with the majority of this due to topography falling within mountain regions.
Payments for farms in mountain areas and other regions disadvantaged due to natural or other specific reasons are granted annually per hectare of agricultural land to compensate for all or part of the additional costs and income losses incurred by farms as a result of disadvantages in agricultural production in these areas. The three area categories are defined according to Article 32 of Regulation (EU) No. 1305/2013.
The aim of the compensatory allowance is to contribute significantly to maintaining widespread and site-adapted agricultural management in disadvantaged areas by providing an income balance compared to farms in favorable areas. This helps preserve natural production bases, cultural landscapes, and biodiversity through site-adapted agricultural use. Maintaining farming would not be feasible for many of these farms under current economic conditions without public payments. The special support for agriculture in disadvantaged areas therefore has a long-standing tradition in Austria and is regulated in a national special directive regarding administration and calculation.