Recognizing that the viability of producers is directly linked to the reduction of their expenses, the Ministry of Agriculture is investing in the modernization of farms in an effort to deal with the constant rise in the prices of production factors.
Strengthening the competitiveness of agriculture is no longer based only on traditional infrastructure, but passes through the integration of technology, innovation and knowledge. In this context, important financial tools were activated, such as the €67.5 million Large Investment Measure, which provides aid of up to €800,000 per farm, offering farmers the necessary supplies for the green transition. At the same time, the Register of Farmers and Agricultural Holdings has now been directly linked to the exercise of policy, allowing the granting of targeted aid exclusively to those who are actively active in the sector.
In an effort to drastically reduce energy costs, the Ministry of Agriculture has revised the incentives for the use of clean energy. Specifically, the subsidy rate for the installation of Renewable Energy Sources (RES) was increased to 80%. For the first time, in fact, the subsidy for energy storage with batteries is introduced at exactly the same rate (80%), solving a timeless problem of managing the power produced. In addition, in cooperation with the Electricity Authority of Cyprus (EAC), a special financing facility was promoted for the implementation of investments in grid-connected photovoltaic systems. Particular emphasis is also placed on reducing the cost of water management, with the announcement of a special plan for the installation of photovoltaics in irrigation connections, which offers a 75% aid and is expected to be re-announced within the next two months.
One of the most immediate and substantial interventions to relieve professional farmers from intense energy pressures was the implementation of the special agricultural electricity subsidy scheme, totalling approximately €1 million. Through this scheme, the beneficiary professional farmers received a subsidy of 3 cents per kWh for the total consumption of agricultural electricity over a period of 14 months. According to the Minister of Agriculture, Maria Panagiotou, the experience and results from the implementation of this plan are already being evaluated, with the ultimate goal of shaping an even more effective and expanded intervention in the near future.
Promotion of PDO halloumi and support for livestock farming
For the most important pillar of Cypriot livestock farming, the establishment of the Halloumi Coordinating Committee proceeded in an effort to restore dialogue and trust between milk producers and processors, stabilizing the market and improving prices.
To this end, the Ministry is implementing a comprehensive package of measures:
• From 2025, coupled payments are not only granted on the basis of the number of animals, but require a minimum milk production level of 230 litres per animal, which increases to 250 litres in 2026 and 300 litres in 2027.
• €29.5 million is available. through the Large Investment Measure exclusively for the sheep and goat sector, while a simplified licensing framework was established for large units (over 800 animals) with the concession of state land and livestock plots.
• A genetic improvement plan for sheep and goats is implemented for the first time for the years 2026-2027, with funding of €1.5 million. per year. At the same time, in collaboration with the CUT and the State Chemical Laboratory, a research program for the detection of milk dust is underway, ensuring the authenticity of the product in international markets.
• Compliance checks with a stricter legislative framework pending in Parliament have been strengthened, while specialized software has been developed to record the quantities of milk used by cheese dairies.
Minister of Agriculture: The primary sector ensures the country's food security
Under the guidance of the Minister of Agriculture, Rural Development and Environment, Maria Panagiotou, the Ministry is investing in long-term policies focusing on the producer himself, aiming to reduce production costs, enhance competitiveness and address the climate crisis. In this context, targeted actions are being implemented, such as the increase of the subsidy for the installation of RES and energy storage systems to 80%, the implementation of the special subsidy scheme for agricultural electricity, as well as the announcement of plans for the installation of photovoltaics in irrigation connections. At the same time, with the aim of adapting to climate change, cutting-edge technological tools are being promoted, such as smart irrigation systems, the upgraded Agrometeorological Bulletin, as well as early risk warning systems based on artificial intelligence. As the Minister characteristically points out, the aim of these interventions is to create a primary sector that is more resilient and ready to ensure the country's food security for future generations.
