European agriculture ministers have reached a negotiating position on the future Common Agricultural Policy, advancing plans to restructure farm support after 2027. The agreement leaves unresolved the central dispute over funding and the balance of power between Brussels and national governments.

European Union agriculture ministers have agreed a negotiating position on the future Common Agricultural Policy (CAP), advancing a restructuring of the bloc’s agricultural support system while postponing decisions about the financial arrangements that will determine how the reforms operate.

The agreement reached on 26 October establishes the Council’s position on the framework governing agricultural payments and support measures from 2028 onwards.

However, ministers have deliberately excluded funding allocations and several related financial provisions, which remain subject to negotiations over the EU’s next seven-year budget.

The distinction is important.

Governments have agreed how they want the future system to operate, but not how much money will ultimately be available to finance it.

A fundamental restructuring of farm support

The proposed reform would integrate agricultural funding into a broader system of national and regional partnership plans covering several major areas of European spending.

Under the existing CAP, agricultural support is organised around two principal funds: one primarily financing direct payments and market measures, and another supporting rural development.

The Commission wants to replace this arrangement with a more integrated structure, while retaining agricultural policy instruments within the new framework.

Each member state would prepare a comprehensive national and regional plan incorporating agriculture, cohesion, fisheries and several other funding programmes.

Brussels argues that the new system could simplify administration, reduce overlapping procedures and give governments more flexibility to address domestic requirements.

However, greater national discretion also raises questions about whether the policy will remain sufficiently uniform across the European single market.

Agricultural conditions differ considerably between member states, from large cereal producers in Eastern Europe to smaller farms operating in mountainous or Mediterranean regions.

Allowing governments to tailor support to domestic conditions may improve flexibility, but it also creates the possibility of greater variation in how European funds are distributed.

Who should receive agricultural payments?

One of the principal changes concerns the distribution of income support.

The Council supports a proposed system known as Degressive Area-Based Income Support, or DABIS, intended to direct assistance more effectively towards farmers actively engaged in agricultural production.

Member states would be required to establish a definition of an active farmer, although governments would retain discretion over the precise national criteria.

The distinction matters because agricultural subsidies have historically generated disputes over payments based primarily on land ownership or agricultural area rather than the scale of productive activity.

The Council has also proposed an optional redistributive mechanism intended to help governments adjust the distribution of payments.

More contentious decisions, including possible payment ceilings and reductions for larger recipients, have been postponed until the broader budget negotiations.

The problem of Europe’s ageing farmers

The reform also addresses generational renewal.

Governments would be required to provide additional income support for young farmers and assistance to help them establish agricultural businesses.

Each member state would have to develop a generational renewal strategy and provide a package of support measures covering areas such as training, advice and access to agricultural activity.

These provisions reflect the difficulties facing younger people seeking to enter farming.

High land prices, expensive equipment and restricted access to finance can create substantial barriers, particularly where established farms are passed between generations.

The Council also supports expanded risk-management arrangements, including insurance and assistance following severe weather, animal diseases and other agricultural emergencies.

Environmental requirements would remain part of the framework, combining common conditions with incentives for practices intended to protect biodiversity and natural resources.

The €300 billion question

The most consequential disagreement concerns financing.

The European Commission has proposed protecting approximately €300 billion for agricultural income support and crisis measures under the 2028–2034 budget.

Additional agricultural and rural-development funding could be available through the broader national and regional plans.

The final ringfenced amount, however, has not been agreed.

As EU Today reported earlier this month, 17 member states have called for agricultural and cohesion spending to be protected during negotiations over the Commission’s proposed €2 trillion long-term financial framework.

The disagreement reflects competing budgetary priorities.

Agriculture remains one of the EU’s largest expenditure areas, but governments are simultaneously facing demands for greater defence spending, industrial investment, infrastructure and migration-related programmes.

Protecting agricultural funding would therefore limit the financial resources available for other priorities unless governments agree to increase the overall budget.

The latest agreement also follows the Council’s 19 October negotiating position on agricultural market rules, which addressed sectoral support and market organisation but similarly avoided resolving the wider funding dispute.

Negotiations enter a decisive stage

Irish Agriculture Minister Martin Heydon, whose government holds the rotating Council presidency, described the latest agreement as a milestone intended to provide farmers with greater stability and flexibility.

The Council’s position now provides a basis for negotiations with the European Parliament.

However, the final shape of agricultural policy will depend heavily on the separate negotiations over the 2028–2034 financial framework.

Until governments agree how much money will be available, questions about payment limits, distribution between countries and the balance between agricultural and other EU priorities will remain open.

The October agreement establishes the proposed framework for European farming after 2027. The budget negotiations will determine the scale of support that framework can actually provide.

The European Parliament has called for substantial additional funding for the European Union’s eastern border regions, proposing that up to 10 per cent of the budgets of relevant EU financing instruments be earmarked for areas affected by Russia’s war against Ukraine and growing security threats.

The resolution, adopted on Thursday, 22nd October, received 414 votes in favour, 79 against and 90 abstentions.

It seeks greater financial assistance for regions bordering Russia, Belarus, Ukraine and Moldova, as well as territories along the Black Sea, under the EU’s 2028–2034 financial framework.

The proposals include higher EU contributions towards infrastructure projects, additional investment in local economies and targeted assistance for communities experiencing declining investment, population losses and increased security costs.

However, the resolution is not binding legislation and does not itself allocate new funding. Its provisions must be incorporated into future budget agreements and individual EU spending programmes.

Eastern regions face economic and security pressures

Russia’s full-scale invasion of Ukraine has significantly changed economic conditions across the EU’s eastern frontier.

Border restrictions, disrupted trade routes, increased defence activity and uncertainty over regional security have affected investment and commercial activity.

The pressures are particularly apparent in Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, Romania and Bulgaria.

According to a European Parliament research briefing published in September, these regions face overlapping challenges involving economic decline, depopulation, inadequate infrastructure and higher expenditure on security.

Some communities previously depended on cross-border trade with Russia or Belarus, much of which has declined sharply following sanctions and restrictions introduced since 2022.

Other regions have experienced increased transport demand linked to Ukrainian refugees, military logistics and the movement of goods towards Ukraine.

The European Commission has recognised that conventional regional development programmes may not adequately address the combination of economic and security pressures.

Parliament proposes dedicated financial allocations

The resolution calls for up to 10 per cent of funding within relevant EU instruments to be earmarked for eligible eastern border regions.

This does not mean that 10 per cent of the entire EU budget would automatically be transferred to those areas.

Instead, Parliament wants targeted allocations within programmes covering regional development, agricultural policy, transport, industrial competitiveness and infrastructure.

MEPs also propose significantly higher EU contributions towards eligible projects.

Under the parliamentary position, certain projects could receive up to 95 per cent EU co-financing, reducing the amount that national or local authorities would have to contribute.

Projects connected with security, resilience or critical infrastructure could potentially receive funding covering 100 per cent of eligible costs.

Additional pre-financing would help local administrations begin projects without having to provide substantial initial expenditure.

The proposals are particularly relevant to municipalities with limited budgets and regions where private investment has declined.

Wider definition includes Moldova and Black Sea regions

Parliament has also proposed broadening the geographical criteria used to identify eligible territories.

The resolution covers regions bordering Russia, Belarus, Ukraine and Moldova, as well as regions with access to the Black Sea.

The proposed framework would use the EU’s NUTS 2 regional statistical classification.

For borders with Russia and Belarus, the parliamentary proposal includes geographical thresholds concerning the length of land or maritime frontiers.

For Romania, the revised approach could extend support to regions connected with Moldova, Ukraine and the Black Sea.

The proposals would also have implications for transport corridors linking Ukraine with the EU, including railways, ports, roads and border-crossing facilities.

Such infrastructure serves both civilian trade and military mobility requirements.

Existing programmes and new investment plans

The Commission has already introduced measures intended to support Europe’s eastern regions.

Its February 2026 strategy identified security, economic growth, connectivity, local industries and demographic resilience as principal areas requiring action.

A proposed investment initiative, EastInvest, is intended to facilitate financing through European and national financial institutions, with the potential to mobilise up to €28 billion by the end of 2027.

This would principally involve lending and investment support, rather than direct grants equivalent to the total facility value.

The Commission has also identified approximately €5.6 billion in cohesion funding redirected towards eastern border regions under the current financial framework.

Those reallocations form part of approximately €34.6 billion redirected towards new priorities across participating member states.

Parliament’s latest demands concern the period after 2027 and would operate separately from these existing arrangements.

Budget negotiations will determine the outcome

The proposal places additional pressure on governments negotiating the EU’s next long-term budget.

Agricultural policy, regional development and industrial investment are already competing for funding alongside increased European defence expenditure.

As EU Today reported in its coverage of the agricultural budget negotiations, member states remain divided over the allocation of resources under the next financial framework.

Eastern border governments are likely to argue that infrastructure and economic development in their territories contribute directly to the EU’s wider security.

Other member states may resist dedicated allocations if these require reductions in existing regional development programmes elsewhere.

Parliament has proposed that additional assistance should not come at the expense of support for other less-developed regions.

The negotiations will determine whether that position is financially achievable.

The next stage will involve discussions over the overall EU budget and the individual programmes through which eastern border assistance could be delivered.

For now, Thursday’s vote establishes Parliament’s demand for a larger and more clearly defined financial commitment to Europe’s eastern frontier, without creating an immediate entitlement to additional EU funding.

Main Image: Denis LOMME: © European Union 2023