CAP: Changes to Agricultural Subsidies – The Repercussions

The European Commission is proposing significant changes to the Common Agricultural Policy (CAP) after 2027, with potential cuts and subsidy caps. This could reshape European agriculture and affect farmers and livestock breeders.

A simplified area-based subsidy is expected to replace the current complex payment system. According to analysts, the Commission's proposal of €300 billion is significantly lower than the €482.5 billion needed to maintain the CAP budget at 2020 levels.

The new proposal aims to redistribute resources, reducing direct subsidies to farmers receiving over €20,000, with a cap of €100,000. Support for linked income is increasing, with emphasis on young, small, and family farmers.

The implementation of the new system may affect over 50% of the utilized agricultural area in the EU. The traditional 'two pillars' of the CAP are being abolished, replaced by a single framework.

The new CAP proposes incentives for environmentally friendly practices, consolidating ecological programs and agri-environmental measures. The goal is to allocate at least 35% of the EU budget to climate and environmental actions.

The impact of the proposal varies among member states, but in many cases touches on fundamental characteristics of national agricultural models. The discussion is ongoing, with farmers and associations being called upon to take a stand.