The next chapter for the CAP

Today, the European Commission is proposing a simpler, more targeted and future-oriented Common Agricultural Policy (CAP) for the period after 2027. The CAP has a central place within the EU’s next budget, guaranteeing food security and vibrant rural areas across the EU. 

The CAP after 2027 will keep its toolbox intact, offering stability and predictability. A ring-fenced budget of at least €300 billion for income support and crisis support will ensure that support to EU farmers is maintained at the same level than the current CAP. Income support under the new CAP is defined more broadly than before. It now includes all payments that support the income or business case of a farmer, including area-based income support, agro-environmental actions and on-farm such as farm modernisation, diversification or the uptake of new practices and technologies.

The rest of the CAP instruments, such as rural projects through LEADER, will be financed by parts of the National and Regional Partnership Plans, worth €865 billion. In addition, the new Competitiveness Fund will provide additional financing for research and innovation in the agricultural sector. 

A larger Unity Safety Net is also established to support farmers in case of market disturbances to the tune of €6,3 billion for the 7 year period, effectively doubling the crisis reserve available in the current CAP. 

The proposals for the next CAP will provide a fair income for farmers, safe and affordable food for consumers, and protection for the environment. To keep pace with a changing world and address new challenges, the policy will offer a balanced mix of incentives, investments and obligations to remain effective as well as more flexibility for Member States to take into account the diversity of the EU farming sector and rural areas.

A more impactful EU budget for agriculture and rural areas

Aligned with the future EU budget proposals, the CAP after 2027 will use a simpler, more flexible delivery system, merging the two funds from the current two pillars. This set-up will improve strategic planning to address local needs and sector-specific challenges. It will also make it simpler to manage for national administrations. This will result in a more impactful policy, further complemented by synergies with other funding programmes under the National and Regional Partnership Plans. 

For example, young farmers will be supported through the CAP, but they will also benefit from the reforms and instruments Member States will have to offer to make rural areas more attractive place to live, ensure better connectivity, provision of essential services and childcare, skills and education, and much more. 

A more targeted support for farmers

For farmers, the guaranteed area-based payment will be focused on farmers that actively farm. Support will be targeted at those who need it most, including young farmers, small and mixed farms, and those operating in areas with natural constraints. To achieve this, support for larger farms will be reduced and capped to €100.000 to ensure fairer distribution. This support will be fully financed by the EU.

At the same time, income support tools previously under the CAP’s second pillar will continue to be available and will benefit from co-financing. Support for investments would retain an important role, allowing farmers and other beneficiaries to help meet economic, environmental, animal welfare and social objectives.

The proposal also puts a strong focus on supporting young farmers and promoting generational renewal. It includes a starter pack designed to help young farmers to establish themselves in the sector. Each Member State would also need to adopt a strategy for generational renewal adapted to their domestic needs. 

A more flexible, results-driven policy

Building on the 2021 reform of the CAP and the need for further simplification, Member States will assume greater responsibility and accountability for meeting policy objectives, targeting their support towards key priorities and tailoring their actions to maximise their contribution to Union objectives. At the same time, the Commission will ensure, through a common set of objectives and rules, that the level-playing field between Member States is maintained. It will issue CAP national recommendations to guide Member States in preparing their Plans. 

Supporting environmental and climate action and farm resilience

Incentives are at the heart of this new policy. A new Farm Stewardship is introduced for beneficiaries of income support. It replaces the current conditionality system by providing a more balanced and flexible approach with less prescriptive, “one-size-fits-all” measures. These practices can be adapted to local conditions and production systems. The level of ambition remains high with objectives set at EU level, such as preservation of soil potential, protection of river courses against pollution or protection of wetlands and peatlands, and Member States will define the best practices to achieve these objectives. This reflects the territorial approach announced in the Vision for Agriculture and Food. 

The proposal also encourages farmers to better manage risks and take preventive measures against crises, also thanks to co-financed measures. For example, more advantageous crisis payments following natural disasters will be provided to insured farmers. Investments will remain available to restore production potential after a natural disaster or an animal disease outbreak. 

Agricultural markets 

In addition to the CAP legal framework, several other provisions are being revised in the Common Market Organisation Regulation to reflect changes in the agricultural sector, such as:

• Promoting healthy eating through locally sourced products via the EU school schemes, reconnecting children with farming
• Creating a new sector for protein crops, to strengthen the value chain at regional, national, and transnational level.
• Protecting certain meat-related terms to keep high production standards as regards the natural composition of meat and meat products and helping consumers make informed choices.
• Introducing marketing standards for protein crops, beef, pork, sheep, goat meat and cheese in the future, including origin labelling.
• Improving preparedness and availability of agricultural supplies during emergencies.

Background

Farming and food are at the heart of the European way of life. They provide safe, high-quality food for 450 million people, support rural communities, and play a key role in global food security. The EU’s CAP, launched in 1962, is one of the EU’s most long-standing and important policies. It supports farmers and rural areas in every Member State, helping to ensure a stable supply of affordable food while protecting farmers’ livelihoods. The CAP also contributes to tackling climate change, preserving nature, and maintaining rural communities by supporting jobs in farming, the agri-food industry, and related sectors. The CAP is funded and managed at EU level, in shared responsibility with Member States, reflecting a common commitment between Europe and its farmers.

The CAP after 2027 is aligned with the Commission’s Vision for Agriculture and Food and will be a key tool in making it a reality. It represents the next steps for a future where farming and food production thrive across Europe in all their diversity, where farming is attractive to new generations benefitting from improved living and working conditions in vibrant rural areas. The proposal will help to promote a more competitive, sustainable, resilient, and fair EU agriculture ready for the future, while also contributing to the EU's broader environmental, social, and economic goals.

The legislative proposal will now be submitted to the European Parliament and the Council for adoption. The CAP post-2027 is set to run for 7 years from 2028-2034.

The CAP is a true common policy, a policy of solidarity, and an anchor of European food security. This policy will continue to be a cornerstone of EU funding. It will be simpler, more targeted, and more impactful — while keeping the essential support that our farmers rely on. Our proposals fully recognises the essential role of farmers– not only as food producers, but also as stewards of our landscapes, keepers of our traditions, and a vital force in our rural communities. Farmers need predictability — and with this CAP, they will have it.

Christophe Hansen, Commissioner for Agriculture and Food