EU farm subsidies slashed in new long-term budget plan
The CAP budget for the next spending period will be €300 billion, down from the current 2021-2027 budget of €387 billion. Adjusted to 2025 real prices, this represents a reduction of roughly 30%.
Speaking at the European Parliament, EU Agriculture Commissioner Christophe Hansen said the amount would be ringfenced – meaning it cannot be reallocated to other policy needs. This will encompass area-based payments, as well as other types of compensation, including environmental incentives, investments, and support for young farmers, he added.
Hansen described the proposal as a 'good outcome for agriculture and our farmers.'
Budget cuts are not the only major change. The CAP will no longer be a standalone fund. Instead, it will be merged into a single mega-fund alongside cohesion and rural development spending, to be managed at the national level.
'Agriculture will be strengthened,' European Commission President Ursula von der Leyen said in a separate press conference, noting that in addition to the ringfenced budget, more member states could reallocate extra resources through the National Regional Partnerships, the single fund for cohesion, fisheries, agriculture and rural areas (€865 billion in total).
The two-pillar structure, in place since 1999 and split between direct support for farmers and rural development, will also cease to exist from 2028, according to the proposal.
There will be 'one policy and one set of measures', said Hansen, adding that this would be the end to 'limitations' to money transfers between pillars.
But not all lawmakers were convinced.
MEP Herbert Dorfmann, the European People's Parliament's (EPP) coordinator for agriculture, rejected Hansen's reassurances that farmers would not be worse off. 'Don't try sell us to as a success figure," he said, estimating a 25% decrease.
Socialist MEPs also called for clarification. 'Where is the real increase?' asked Dario Nardella, S&D group coordinator on agriculture. What's new As previously reported, Hansen is following through on his pledge to re-think the distribution of area-based payments by reinforcing capping and degressivity mechanisms.
He said the changes would allow for 'better targeted' payments, especially for those who need it the most, such as young farmers. Moreover, the minimum amount of direct payments for young farmers will increase from 3% to 6%.
He said the new proposal would also improve the definition of 'active' farmer and introduce a method to better account for inflation. Additionally, a new 'farm relief service' will make it easier for farmers to take time off. What's gone Hansen announced the scrapping of the current green conditions attached to direct payments depended – the Good Agricultural and Environmental Conditions (GAECs). Instead, member states should define their own minimum sustainable practices.
Environmental incentives, known as eco-schemes, are also set for a shake-up. These will be merged into the agri-environmental and climate measures (AECMs), which remain voluntary and require co-financing from member states.
This story was updated.
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