- Why is the Commission proposing a new CAP now?
- The proposal is part of the long-term EU budget, also referred to as the Multiannual Financial Framework (or ‘MFF’), which is the is the financial capacity of the Union and the underpinning for Common Agricultural Policy (CAP) expenditure.
- The MFF is an opportunity for the CAP after 2027 to evolve towards a more impactful, simpler and flexible policy, able to respond to future socio-economic, as well as climate, environmental and geopolitical challenges.
- Delivering on the Vision for Agriculture and Food, the proposal builds on the lessons of the past while addressing the pressing needs of farmers, rural communities, and society as a whole.
- What is the budget that will go to EU farmers, rural areas and the EU agriculture sector?
- Farmers will continue to receive secure and reliable income support through a ring-fenced budget of at least €300 billion. Income support includes different payments that support the income or business case of a farmer, including area-based income support, agro-environmental actions, support to small and young farmers, and on-farm investments, such as farm modernisation, diversification or the uptake of new practices and technologies.
- Member States will also tap into the new National and Regional Partnership Fund - an envelope totalling €865 billion - to finance the remaining CAP measures they need to put in place, for example to increase connectivity in rural areas, or to support rural entrepreneurship via LEADER.
- To help farmers cope with the impact of disturbances on agricultural markets, the Commission has doubled the amount of the crisis reserve. Now called Unity Safety Net, it is worth €6.3 billion and is exclusively reserved for farmers.
- Finally, agriculture will also continue to benefit from European research - thanks to Horizon Europe and the new Competitiveness Fund which will support programmes for agriculture, health, the bioeconomy and biotech. This will help develop seeds that are more resistant to climate change or innovative applications in the bioeconomy, leading to additional revenue for farmers, for example.
- The new budget also includes new method to adjust to inflation, thus better shielding farmers against the unpredictable swings in prices.
- What are the main changes being proposed?
- The structure of the CAP post-2027 is simplified and streamlined. The two existing funds, EAFG and EAFRD – also referred to as first pillar and second pillar- will be merged into a single, coherent policy framework. This will eliminate duplication, allow for more flexible use of resources, and ensure all measures align with shared objectives.
- Support for farmers will be more targeted and fairer. A simplified degressive area-based payment will replace the current complex system of payment schemes. While maintaining direct payments, the reform introduces measures to prioritise support for young, small, and family-run farms while reducing support for big farms by capping and degressivity. Coupled income support is also increased, with the maximum spending going up from 13% to 20%, with an additional 5% possible for sectors and regions that need it most, such as livestock farming and sensitive border areas.
- Environmental protection and climate action remain central, but the approach will shift from prescriptive conditions to rewarding positive actions. The current system of eco-schemes and agri-environmental measures will be merged into a single category of agri-environmental actions, co-financed by Member States. Farmers will receive clear incentives to adopt practices that benefit biodiversity, the climate, and animal welfare. A new transition payment, worth up to €200,000, will further support farms shifting to more sustainable models.
- Young farmers will receive unprecedented support. Every Member State will be required to adopt a Generational Renewal Strategy, ensuring that structural, financial, and social barriers to entering the profession are addressed. A mandatory “starter pack” of measures will make it easier for young people to begin farming.
- Rural areas and innovation will also benefit. All current rural development tools will be retained and strengthened, including the LEADER programme. Innovation, research, and advisory services will be expanded, with a new focus on mental health and work-life balance for farmers. For the first time, farmers will be able to access relief services and benefit from the help of replacement workers when they are sick, on leave, or dealing with family responsibilities.
- Finally, the proposal for the Regulation on Common Market Organisation includes targeted market reforms. These aim to support the growth of the plant protein sector, protect traditional meat product designations, and introduce a legal basis for country-of-origin labelling in the future. EU-grown products will also be prioritised in school schemes distributing fruit, vegetables and dairy products to schoolchildren, reinforcing food security and local agriculture.
- The future CAP offers a balanced and modernised policy that protects incomes, rewards environmental stewardship, supports generational renewal, and strengthens the resilience of rural communities across Europe.
- Will the current two-pillar structure of the CAP remain?
- The new MFF aims to deliver better value for money, increase synergies and simplify access to funding. The National and Regional Partnership Plans brings together existing EU funding programmes under a harmonised framework with the CAP at its heart.
- For the CAP, this means moving away from the two-pillar structure (composed of the EAGF and the EAFRD funds) and merging the two existing funds to keep one coherent set of instruments. The familiar CAP tools from either pillar remain in the toolbox at the disposal of Member States and farmers. This new structure removes limitations in transfers between pillars. No more overlaps and different financing conditions for measures that pursue same objectives and more.
- Farmers will continue to benefit from the support provided under the current CAP’s second pillar, integrated into a single funding instrument. This will also help lower administrative burden.
- What benefit will the new fund have?
- The integration of the CAP into the National and Regional Partnership Plans will create greater synergies and more impactful measures where needed, while safeguarding the predictability of income support for the farmers.
- This will allow for a more comprehensive and effective approach to support farmers and rural areas.
- Young farmers in particular will benefit from this, as they will receive support through the CAP and also gain from reforms and instruments that make rural areas more attractive. This means for example, improved connectivity, essential services, and education, or taxation and access to land reforms.
- The Commission will ensure that Plans deliver on national needs, including for agriculture and rural areas, through country-specific CAP recommendations, while maintaining a ring-fenced budget for income support to farmers of at least €300 billion, providing a secure and stable foundation for the sector.
- How will this affect farmers in practice?
- The CAP continues to have a ring-fenced budget for income support for farmers. They will have predictability about the amounts that complement their income, help fund farm investments, reward ecosystem services, support risk management, set up young farmers or provide farm relief services, thus contributing to ensure fair standards of living.
- New opportunities for additional funding and synergies for on- and off-farm investments, knowledge sharing and innovation, digital solutions, new payment for transition towards more resilient farms, risk management and access to finance will strengthen the overall competitiveness, resilience and sustainability of farms.
- How is the support to farmers going to focus on those who need it most?
- The CAP after 2027 proposes a more targeted approach to area-based payments, considering the unique economic conditions of specific farms and territories.
- The proposal introduces measures to address redistribution of income support giving priority to small farms, young farmers, and farms located in areas with natural constraints. Bigger farms will receive less support as a result of mandatory degressivity and capping. This will ensure support is directed towards those who need it most.
- Member States will also have flexibility to design targeted income support schemes, addressing specific needs of their farmers – including young farmers, women, farmers combining the production of crops and livestock - and territories.
- Smaller farms can receive dedicated support through area-based payments, lump sums for transition or investments, or top-ups, promoting a competitive and resilient agricultural sector.
- How will the CAP further support young farmers after 2027?
- The European Commission’s new CAP proposal is designed to help a new generation of farmers take root and thrive. With a variety of dedicated tools and accompanying reforms, and targeted support, young farmers will be better equipped to build successful, innovative, and sustainable businesses.
- The Commission will call on Member States to commit the necessary resources – a 6% aspirational target at EU level will be announced in the Generational Renewal Strategy coming up this Autumn and steered via CAP specific recommendations.
- Young farmers will benefit from targeted support, including area-based payments and a "starter pack" of measures tailored to their specific needs, helping to address the challenges they face and promote a more vibrant and diverse agricultural sector.
- The CAP will also provide young farmers with access to training, mentoring, and other forms of support, such as knowledge, advice, and skills development, and will work in conjunction with national reforms and measures to support their success, ensuring they have the tools and expertise needed to thrive.
- Eligible investments will benefit from up to 85% of EU co-financing, a higher rate representing a clear signal of EU priority.
- The goal is to make farming more accessible, attractive, and viable for the next generation.
- How does the new CAP proposal address the issue of external convergence? What measures are in place to reduce the disparities in direct payments per hectare between Member States?
- The external convergence mechanism in the current CAP redistributes funds between Member States to reduce disparities in direct payments. Member States receiving below 90% of the EU average get an increase and those above contribute to the redistribution.
- However, under the new MFF, this redistributive function is no longer needed within the CAP, as it is taken into account when determining the overall National and Regional Partnership Plan allocation per Member State. Concretely, a bonus is provided to those Member States with below-average direct payment levels per hectare.
- Further, the CAP after 2027 sets a specified range (minimum/maximum amount per hectare) for degressive area-based income support, making it more uniform between Member States and creating increased fairness in its implementation and effects.
- This approach allows Member States to differentiate payments based on income needs while providing an overall limit to how much can be allocated to basic income support, encouraging Member States to channel support to other CAP instruments, such as agri-environmental and climate actions or agricultural investments.
- What’s happening to the CAP’s environmental goals?
- The CAP after 2027 fully recognises the crucial role that agriculture plays in protecting and preserving the environment.
- The proposal contains strong delivery mechanisms for the environmental objectives, including a new farm stewardship for all farmers - requirements for receiving income support- with simplified and tailored incentives to adopt practices that are beneficial for climate action, water management, soil health, biodiversity preservation, reduction of pesticides use, and animal health and welfare.
- Instead of imposing ‘one-size-fits-all” prescriptive conditionalities, Member States will be able to design measures fit to their local environment and conditions, guided by Commission recommendations, thus ensuring that our common environmental objectives are reached.
- The simplified framework of the future CAP, based on a territorial approach, focuses on results by providing more targeted requirements at the EU level, combined with stronger incentives for farmers to adopt environmentally friendly practices. This approach will enable farmers to take ownership of environmental outcomes, while also ensuring that the CAP's environmental objectives are met.
- Moreover, a 35% climate and environment spending target has been set for the overall EU budget. This translates into a 43% spending ambition under the Plans, to which the CAP is also called to contribute.
- The Commission will continue to steer the CAP's environmental ambition through country recommendations, approval of national Plans, and tracking of outcomes. This will ensure that Member States and farmers are held to high environmental standards, while also allowing for flexibility and adaptability in response to changing circumstances.
- Will the CAP continue to support rural areas?
- The CAP recognises the vital role of vibrant rural areas and communities in the EU's socio-economic development and territorial cohesion.
- Under the Plans, funding will be channelled for initiatives that address territorial disparities and the attractiveness of rural areas.
- Better coordination between policies will help tackle key challenges in rural areas. This includes increasing access to services, improving connectivity and digital tools, unlocking innovation, and business opportunities. The aim is to create strong, vibrant, and better-connected rural communities that support the EU’s overall success.
- The CAP will build synergies with other policy areas with more integrated approaches to rural development, leveraging successful tools like LEADER to promote local development and provide access to a broader range of funding opportunities and expertise.
- How will innovation be made available to the agricultural sector?
- Innovation, research, access to farm advisory services remain central to our approach.
- Access to knowledge, deploying innovation, and accelerating the digital transition are essential to enable the agriculture sector to thrive.
- This includes strengthening agricultural knowledge and innovation systems, and providing access to advisory services, targeted training, and digital solutions.
- The proposal maintains successful tools, such as cooperation projects for innovation (under the EIP-AGRI), and offers opportunities for simplification and synergies with other EU instruments.
- The CAP will work in conjunction with other EU policies, such as vocational training and digitalisation initiatives, to drive technological advancements and lifelong learning opportunities for farmers and farm workers, particularly young farmers, to create a more innovative and resilient agricultural community.
- The agricultural sector will also be able to benefit from other funds, such as the European Competitiveness Fund or the EU Research Framework Programme.
- Innovation will be supported with a mix of funding options. Investments in agri-tech and bio-tech companies will help the sector grow. This will provide small and medium-sized farms with the financial support they need to invest, modernise, and adopt new, innovative methods.
- How is the proposal going to simplify the CAP for farmers and Member States?
- Our proposals aim to streamline the Common Agricultural Policy (CAP), making it easier to implement, more flexible, and better adapted to the needs of farmers and Member States.
- One simpler system: the merging of the two existing funds, the EAGF and the EAFRD, will remove rigidities and enable more flexible support to farmers and rural areas. It will also simplify the delivery and planning of measures for national administration.
- Thanks to a territorial approach, notably for environmental and climate measures, Member States have more freedom to design and implement support tools tailored to their specific regional and sectoral needs.
- Simplified procedures make it easier to access support, including an increased used of lump-sum payments, targeted top-ups for young or small farmers, and one single degressive area-based payment.
- Requirements are now more aligned across different funding areas, making it simpler for farmers to access support and combine it with other policies such as energy production, water management, or skills development.
- How will this proposed CAP help farmers become more resilient to crises and future challenges?
- The CAP after 2027 offers strong protection for farmers, helping them manage risks and stay stable in the face of climate change and global uncertainty.
- What was previously known as the agricultural reserve will now be strengthened with a guaranteed €6.3 billion fund. This Unity Safety Net will help farmers cope with the impact of market disturbances. This amount is ring-fenced and only reserved for farmers.
- The CAP proposals also encourage the uptake of risk management tools. They focus on building on-farm resilience, with targeted support to help farmers adapt, diversify, and reduce their exposure to shocks. Farmers will also be eligible for crisis payments under the National and Regional Partnership Plans to cover losses from natural disasters or extreme weather.
- How will the Commission protect farmers from increased pressure due to geopolitical and trade disputes?
- The Commission will continue to stand by farmers facing market pressures and imbalances, including those caused by trade disruptions.
- A new Unity Safety Net has been proposed to help farmers face with the impact of market disturbances, worth €6.3 billion. This effectively doubles the current agricultural reserve.
- This reserve can be used to provide direct, targeted support to farmers affected by trade disputes or any other market shock, helping them stay competitive and resilient in these geopolitical uncertainties.
- How is the proposed CAP in line with the Vision for Agriculture and Food?
- The proposal reaffirms the importance of agriculture and food in the EU’s budget and secures a budget for the CAP with ring-fenced resources to ensure European farmers can thrive and produce high-quality food.
- The proposal delivers on the Vision’s goals by targeting income support to farmers in need, and introducing incentives for climate and environmental actions, rewarding farmers who work with nature and promote sustainable farming practices.
- The proposed CAP delivers on the Vision by simplifying rules, giving Member States more flexibility, and offering a wider range of support.
- This means farmers will get support that’s better tailored to their needs and easier to access.
- What will the governance of the CAP post-2027 look like?
- The governance model will be similar to the current CAP Strategic Plans. The Commission will issue recommendations to Member States based on common objectives and priority areas to steer the process. Then, on this basis, the Member States will work on their Plans and the Commission will have the final overview to ensure a level-playing field and a joint contribution to achieving the economic, social and environmental objectives set at EU level.
- The CAP will be programmed together with other policies. The partnership principle will be at the core of this approach, with national Plans prepared in collaboration with regional and local authorities, and stakeholders, including farmers and rural partners.
- How were farmers and other stakeholders consulted in the development of the CAP post 2027 proposal?
- The Commission engaged in a collaborative approach to shape the next EU budget.
- It involved stakeholders, citizens, and other EU institutions through various channels, including public consultations, a citizen engagement platform, and a Citizens' Panel.
- The Commission held continuous dialogue with stakeholders over the past two years, including technical workshops, a Strategic dialogue on the future of EU agriculture, and a Vision Conference that brought together over 6.500 participants to discuss the future of agriculture and food in the EU.
- The consultation process also involved key stakeholders, such as the European Board for Agriculture and Food (EBAF) and the Civil Dialogue Group on the CAP, to ensure that their views and expertise were taken into account in shaping the future CAP proposal.
- What changes are proposed to the Common Market Organisation Regulation?
- This is a very targeted review of the CMO regulation with only changes proposed that are needed to address market specificities.
- Changes include increased support for specific sectors, and the protection of certain traditional meat names, including reinforced origin labelling.
- A new sector will be introduced for protein crops, and existing sectoral support measures will be streamlined and brought together for greater impact.
- Concerning the school schemes, Member States will also be requested to give priority to EU production.
- New rules will also improve the EU’s preparedness for future challenges, including the creation of food reserves.
- When would the proposed CAP come into effect?
- Pending approval by the European Parliament and the Council, the MFF proposals are expected to come into effect on 1 January 2028.
- They will run for a period of 7 years, until 31 December 2034.
Details
- Publication date
- 23 July 2025
- Author
- Directorate-General for Agriculture and Rural Development
- Department
- Directorate-General for Agriculture and Rural Development
- Location
- Brussels
