Farmers planning to invest still cannot tell how much help they will get from 2028. EU governments want more say over farm subsidies, and the Commission fears weaker rules. The money is not yet on the table.
The next Common Agricultural Policy (CAP) will decide how EU farmers are funded from 2028 to 2034. On Monday, 26 October, agriculture ministers meeting in Luxembourg agreed a partial negotiating position on it. The position leaves out questions with budget implications, which hinge on talks over the EU’s next long-term budget. The reform would bring a new subsidy system and streamline funding for farmers. It aims to help young people go into farming and give member states more flexibility in how they support farmers.
But Christophe Hansen, European Commissioner for Agriculture and Food, warned that ministers had weakened some of the Commission proposals, particularly those concerning organic farming and protection against climate-related risks. He still welcomed the deal, as the Council needs a position before talks with the European Parliament can start.
More freedom for national governments
The Council wants to simplify the CAP and give EU countries more flexibility to support their farmers. Under its position, the CAP would drop its current two-part structure, which splits money between income support and rural development, and merge both funds into one. Each member state would fold farm support into a single national and regional partnership plan, alongside cohesion, fisheries, migration, and other EU policies. Governments would have more freedom to decide how they deliver support, while following common European objectives.
The future CAP must support active farmers, empower the next generation and help farmers withstand risks and crises. — Martin Heydon, Minister for Agriculture, Food and the Marine of Ireland
The Council believes the changes will make support simpler. Martin Heydon, Ireland’s Minister for Agriculture, Food and the Marine, who chaired the talks, called the deal “a major milestone”. He said it would give farmers stability and predictability, and member states the flexibility to meet their farmers’ specific needs. “The future CAP must support active farmers, empower the next generation and help farmers withstand risks and crises,” he added. The Commission is concerned that greater national flexibility could weaken common standards.
Fight over organic farming and insurance
Speaking after the meeting, Mr Hansen also raised concerns about the Council’s approach. “We have also concerns that I have stressed, especially on a wider range of flexibilities and some lowering of ambition,” he said.
One disagreement concerns organic farming. The Commission wants to require countries to provide dedicated support for organic production. Mr Hansen said such measures should remain mandatory, alongside financial tools to help farmers adopt organic practices. The Council favours giving governments more choice over the measures they introduce.
Another concern is insurance and other tools that protect farmers against losses. Mr Hansen said only 20 per cent of EU agricultural production has insurance cover. He wants such tools to remain mandatory. Farmers need stronger protection, he argued, as droughts, floods, and other extreme weather events become more frequent.
Better insurance, he said, could also give farmers the confidence to invest and make it easier to obtain loans. The Council framework supports risk-management tools, and lets governments pay crisis aid to farmers hit by natural disasters or animal and plant diseases. But it leaves more room for national decisions. The final rules will depend on negotiations with the European Parliament.
Young farmers promised extra support
Helping younger people enter farming is another important part of the reform. Many aspiring farmers face high costs when they buy land or machinery, or start a business.
Under the Council’s position, EU countries would have to offer higher income payments to young farmers and help them establish their farms. Governments would also need to prepare national strategies to attract new generations into agriculture.
They would have to offer young farmers a starter pack combining financial help, training, and advice. The Council wants to target income support more closely at active farmers and improve how payments are distributed. Each country would have to define who counts as an active farmer, meaning someone with a minimum level of farming activity.
Budget question worth €300bn
Money remains one of the biggest uncertainties. The Commission has proposed setting aside around €300bn for farm income support and crisis measures under the EU’s next long-term budget. That money could not go elsewhere. Yet Mr Hansen has said it amounts to about 80 per cent of what the CAP gets now.
Additional funding could be available through national and regional plans, including for rural development and innovation. But the €300bn is only a proposal. The final figure will emerge from talks on the whole 2028–2034 budget.
Rules to cap and gradually reduce the largest payments are also still open. Ministers left them out of their position because they, too, depend on the budget talks. That leaves farmers who plan big investments in the dark, as they need to know what support to expect in the coming years. Mr Hansen stressed that farmers need certainty about their payments to make long-term plans.
Key decisions still ahead
The Council agreement is only a negotiating position. It allows the Irish presidency to open talks with the European Parliament, and both institutions must approve the final law. EU leaders, meanwhile, continue discussions on the 2028–2034 budget. The outcome will determine how much support farmers receive and which measures governments must provide.
How much money will be available, which environmental and insurance measures will be compulsory, and how much freedom will national governments have? For Europe’s farmers, those decisions will matter more than Monday’s deal itself.