Filenews 20 October 2025 - by Angelos Nikolaou
With important reforms and an ambitious reform strategy, the European Commission presented in July 2025 its proposal for the new Common Agricultural Policy (CAP) to be implemented for the period 2028–2034. This is a fundamental change in the way the EU's agricultural policy is financed, managed and implemented, which is already causing intense debates between member states and of course in Cyprus.
The most radical change in the new CAP is the abandonment of the existing two-pillar system (direct payments – rural development) in favour of a single Fund that will finance the policies for agriculture, regional development, fisheries, social cohesion and security as a whole. Member States should prepare a single National and Regional Partnership Plan (NRP) for all policies, which creates both opportunities and administrative challenges.
The European Commission envisages a total budget of €782.8 billion for the period 2028–2034. Of these, approximately €293.7 billion (37,5%) will be directed to income support for farmers. It is noted that the concept of income support is broad and also covers investments, aid for the establishment of young farmers, as well as sectoral aid.
The proposal for a regulation includes additional support options related to agriculture that are outside the above amount, including some mandatory ones, which can be supported by the remaining amount. Such interventions are LEADER, support for the exchange of knowledge and innovation in agriculture and forestry, regional and local cooperation, school plan (fruit and milk). An important point of the new framework is the non-commitment of 25% to NRPs to be available for crisis support.
Cyprus is expected to secure €415.9 million as minimum income support in the next CAP, an amount corresponding to 77% of the resources of the current period (2021–2027: €541.9 million). Despite the reduction, which concerns the declining acreage income support, the special cultivation aid for cotton, the agri-environmental and climate actions and the support for small farmers, the Cypriot side notes that the total resources will increase with the addition of additional interventions outside the minimum budget.
The Commission's proposals are under negotiation with member states and the European Parliament, with the aim of adopting the final legal framework before the end of 2026, so that there is sufficient time to prepare.
The new CAP, more than ever, will determine not only farmers' incomes, but also the role of agriculture in the new green and digital Europe.
For the rural world of Cyprus, the challenge is twofold: To adapt to the new environment and, at the same time, to ensure that its voice is heard in the European negotiations.
Cyprus is in favour of a "strong, well-funded and functioning CAP", according to the Ministry of Agriculture. Although the new structure deviates from the traditional two-pillar system, the Republic of Cyprus recognises the dynamics of the new framework provided that a clear message to farmers is ensured: Funding guarantee, stable income and a functioning regulatory framework. However, Nicosia expresses serious reservations about individual proposals:
>> Exclusion of retired farmers from hectare subsidies after 2032: Cyprus stresses that such measures require more flexibility, especially in countries with an ageing rural population. "57% of farmers in the EU are over 55 years old. If we do not make agriculture attractive to young people, such regulations may further weaken the sector," Cyprus' position reads.
>> Mandatory application of degressive support and limits on aid: Cyprus expressed opposition, arguing that the single approach does not take into account the different agricultural structures per member state.
>> National co-financing: While national aid is supported, Cyprus warns of the risk of creating inequalities between member states with different fiscal capabilities.
One of the biggest challenges for the implementation of the new CAP in Cyprus and in each member state is the necessary coordination between many Ministries and Services. The single NRP requires horizontal cooperation within strict timelines. The experience of the previous Partnership Agreement shows that without effective coordination, implementation can encounter serious obstacles.
What changes does the new Common Agricultural Policy bring to farmers?
The new CAP brings sweeping changes, especially in the following areas:
>> Basic aid Reduction depending on the amount of aid: -25% for €20,000-€50,000, -50% for €50,000-€75,000, -75% for €75,000-€100,000, maximum support per year: €100,000. Support under the CAP will target active farmers with the aim of supporting food producers/businesses.
>> Support for agri-environmental actions: It concerns mandatory support for measures (annual or multiannual) with benefits for the climate, the environment and animal health and welfare.
>> Pensioners: Ban on hectare payments from 2032 to those farmers who receive a pension based on national legislation.
>> Aid for small farmers: Simplified system of payment of income support to small farmers, with a lump sum of no more than €3,000 per year. The support is primarily aimed at farmers who carry out agricultural activity on their farm and actively contribute to food security.
>> Young farmers Mandatory "starter packs" and strategies for generational renewal. Mandatory package for the installation of new ones, with co-financing of up to 85%. Support options are being expanded (e.g. a set-up bonus can also be given to people over 40 years old who want to engage in agriculture for the first time).
>> LEADER There is no minimum %, simplified cost and lump-sum of €20,000-€100,000.
>> Simplified Cost (SCO): Mandatory use of SCO for projects ≤€400,000 (or ≤€100,000 for some).
>> Farm stewardship New compliance framework: SMR + social conditionality + protective practices (previous obligations under Good Agricultural and Environmental Practices are removed)
>> Coupled payments Increase the maximum support rate from 13% to 20% in targeted sectors, concerning specific crop support for cotton, agri-environmental and climate actions and support for smallholder farmers.
>> Risk management Mandatory implementation of support to farmers for their participation in risk management tools and support is granted only to cover losses above a threshold (damage threshold ≥20%) and specific derogations are provided for young people.
>> Support for farm relief services New intervention for farm relief services: Financial support for the replacement of farmers who do not work on their premises due to illness, childbearing, holidays or participation in training.
