Agricultural Policy Monitoring and Evaluation 2026

12. European Union

Main findings

Support to agriculture

Producer support in the European Union (EU), measured by the Producer Support Estimate (PSE), has stabilised since 2010, after falling in the 1990s and early 2000s. EU support to producers as a share of gross farm receipts stood at 17.4% in 2023-25, above the OECD average.

While trade-protection measures remain in effect for several sectors – including import and export licensing, tariff rate quotas (TRQs), and special safeguards – their importance has declined substantially over the last two decades. In 2023-25, market price support (MPS) accounted for around 28% of support to farmers, down from 46% in 2000-02. Producers of beef and veal and of poultry meat are the most important beneficiaries, followed by rice producers. On average, prices received by farmers in 2022‑24 were 6% higher than border reference prices, compared to 22% in 2000-02.

On average in 2023-25, 37% of budgetary support to farmers was based on non-current area or animal numbers not requiring production, while a similar share was based on current area or animal numbers that did require production. A further 21% was linked to the use of inputs. Almost half of payments to farmers were contingent on mandatory constraints, while an additional 23% were linked to voluntary environmental constraints that go beyond mandatory requirements, such as agri-environmental measures and eco‑schemes.

Expenditures on general services to the agricultural sector (General Service Support Estimate, GSSE) accounted for an average of 12.6% of total support in 2023-25, but only 2.9% of the value of agricultural production – down from 2000-02 levels and below the OECD average. Although spending on agricultural knowledge and innovation systems doubled in absolute terms over the past two decades, it has remained steady relative to the size of the sector, corresponding to around 1.5% of its value of production. While relative to the production value infrastructure spending has declined by more than half, expenditures on marketing and promotion, as well as inspection and control, have increased.

Total support to the sector declined in relative terms over the past 20 years. In 2023-25, total support is estimated at 0.6% of the Gross Domestic Product (GDP), compared to 1.0% in 2000-02.

Key policy changes in 2025-26

Changes to CAP rules were introduced to reduce administrative burdens and increase flexibility for farmers and national administrations. Among these changes, organic farms are deemed compliant with certain conditionality requirements, and on‑farm inspections are no longer required where satellite monitoring is available. Administrative procedures have also been streamlined, with European Commission approval now required only for amendments deemed strategic to Member States’ CAP Strategic Plans (CSPs).

The newly introduced Soil Monitoring Law establishes an EU‑wide framework aimed at halting soil degradation and supporting the achievement of healthy soils across the European Union by 2050. The Law requires Member States to monitor and assess soil health and support landowners and land managers through advice, training, capacity building, and innovation.

In October 2025, the European Commission presented the Strategy for Generational Renewal in Agriculture, which aims to double the share of young farmers by 2040. In its proposal for the CAP 2028‑34, the European Commission encourages Member States to allocate at least 6% of agricultural expenditure to this objective and seeks to reinforce this strategy by increasing support for young farmers through enhanced area‑based payments and additional tools.

Newly introduced liquidity‑enhancing and risk‑management measures to increase farmers’ resilience include higher advance payments under the CAP and targeted support to help farmers absorb market disruptions and weather‑related losses. Targeted adjustments to trade and border measures were also implemented, including tariff measures adopted in response to changes in trade conditions with key partners, together with import restrictions and regulatory controls aimed at addressing market pressures linked to sector-specific disruptions in neighbouring countries.

The EU-Mercosur Partnership Agreement and the related Interim Trade Agreement were signed, pending review by the European Court of Justice. Negotiations on free trade agreements (FTAs) with India and Australia and on the modernised EU-Mexico agreement were concluded, while the revised EU-Ukraine and EU-Moldova FTAs entered into force. All these initiatives include provisions on market access for agricultural products, covering both tariff and regulatory elements, while taking into account sector-specific considerations.

Assessment and recommendations

• Target coupled support at clearly identified market failures, such as short‑term adjustment costs, supply chain disruptions, or well-defined environmental or social objectives, that cannot be effectively addressed through other policy instruments. Coupled income support represents approximately 7.5% of total financial allocations under the CAP Strategic Plans (CSPs) of EU Member States. This type of support can sustain vulnerable sectors; however, it may also distort production choices and trade and potentially generate environmentally harmful impacts.

• When using support to target specific sectors, prioritise measures that enhance productivity and build resilience, including investment in off-farm physical infrastructure, farm advisory services, research and innovation, and improved market advice. Collective action, notably through support for producer organisations, value‑chain co‑ordination, and the development of quality schemes, already constitutes an important component and could be further promoted.

• Ensure that CAP simplification is accompanied by robust and consistent monitoring to avoid uneven application of requirements. While the 2026 amendments to the CAP rules are a positive step towards reducing administrative burdens and increasing flexibility for both farmers and national administrations, this should be accompanied by adequate safeguards to ensure that control systems remain effective and that measures are properly implemented, notably with regard to GAEC compliance and the use of exemptions from on‑farm inspections. Effective use of the available monitoring tools should be promoted to ensure that simplification does not weaken the environmental outcomes of the CAP.

• Ensure effective enforcement of social conditionality through consistent monitoring and sanctions across Member States. While linking CAP direct payments to compliance with labour laws is a positive development, its impact will depend on robust information‑sharing, harmonised implementation and credible penalties to avoid uneven implementation.

• Ensure effective implementation of EU sustainability initiatives via strong and coherent enforcement mechanisms at Member State level. While recent EU initiatives – including the Water Resilience Strategy, the Strategy for a Competitive and Sustainable EU Bioeconomy, and the Soil Monitoring Law – provide an important strategic framework to address water, soil, and biomass challenges, tangible results will require implementing regulations designed around clear, outcome‑oriented requirements, supported by measurable indicators and regular reporting.

• Promote the diversification of trade partnerships while ensuring that trade-related policy measures remain transparent, proportionate and time-bound. Recent EU trade policy developments point to strengthened efforts to diversify trade partnerships and enhance market access for agri‑food products, aimed at contributing to more resilient supply chains. At the same time, the continued use of tariff rate quotas and exclusions for sensitive sectors under trade agreements may limit the efficiency of trade flows, while the recourse to unilateral trade measures in crisis contexts can undermine their predictability in an evolving global trading environment.

• Rebalance risk management support by strengthening instruments that enhance the sector’s preparedness and long-term resilience. While ex-post measures help agricultural producers recover from the impacts of climate events, disease outbreaks, and geopolitical disruptions, greater emphasis should also be placed on support for the adoption of resilience-enhancing practices and technologies, such as land management approaches that help reduce flood risks, to improve the sector’s capacity to cope with future shocks.

Key indicators on agricultural support

Table 12.1. European Union: Estimates of support to agriculture

Million USD

	1986-88	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	233 558	225 516	540 350	524 583	520 449	576 017
of which: share of MPS commodities (%)	74.95	73.34	72.39	72.75	71.99	72.43
Total value of consumption (at farm gate)	212 900	227 220	547 039	532 316	530 917	577 886
Producer Support Estimate (PSE)	95 385	79 935	107 530	100 672	102 289	119 628
Support based on commodity output	86 308	41 078	30 204	25 400	27 756	37 457
Market price support¹	80 672	37 140	29 930	25 136	27 485	37 170
Positive market price support	81 784	37 140	30 128	25 288	27 562	37 534
Negative market price support	-1 112	0	-197	-152	-77	-363
Payments based on output	5 637	3 938	274	264	271	287
Payments based on input use	5 056	6 846	16 656	15 708	15 317	18 943
Based on variable input use	960	3 053	6 117	5 926	6 080	6 345
with input constraints	0	0	46	37	51	49
Based on fixed capital formation	2 986	2 263	8 323	7 669	7 223	10 077
with input constraints	0	95	130	100	85	206
Based on on-farm services	1 109	1 530	2 216	2 113	2 014	2 522
with input constraints	90	275	21	28	16	20
Payments based on current A/An/R/I, production required	3 587	31 255	29 021	29 176	28 296	29 591
Based on Receipts / Income	147	99	1 451	1 475	1 018	1 859
Based on Area planted / Animal numbers	3 440	31 156	27 570	27 700	27 278	27 732
With input constraints	940	13 979	24 186	23 080	23 836	25 644
Payments based on non-current A/An/R/I, production required	0	0	10	9	10	12
Payments based on non-current A/An/R/I, production not required	0	10	29 011	28 619	28 322	30 092
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	0	10	29 011	28 619	28 322	30 092
with commodity exceptions	0	0	0	0	0	0
Payments based on non-commodity criteria	478	1 080	2 252	1 353	2 203	3 202
Based on long-term resource retirement	476	848	628	116	604	1 164
Based on a specific non-commodity output	2	176	1 297	1 064	1 206	1 620
Based on other non-commodity criteria	0	57	328	173	393	418
Miscellaneous payments	-43	-335	375	407	385	332
Percentage PSE (%)	38.43	29.77	17.39	16.78	17.18	18.17
Producer NPC (coeff.)	1.66	1.22	1.06	1.05	1.06	1.07
Producer NAC (coeff.)	1.62	1.42	1.21	1.20	1.21	1.22
General Services Support Estimate (GSSE)	9 144	8 370	15 528	14 204	15 003	17 377
Agricultural knowledge and innovation system	1 814	3 499	8 282	7 773	8 082	8 992
Inspection and control	194	281	1 667	1 356	1 723	1 924
Development and maintenance of infrastructure	1 331	2 226	2 256	1 987	2 064	2 718
Marketing and promotion	1 210	998	3 261	3 049	3 060	3 673
Cost of public stockholding	4 571	1 297	23	20	23	26
Miscellaneous	24	70	39	20	51	44
Percentage GSSE (% of TSE)	8.31	9.12	12.55	12.30	12.73	12.61
Consumer Support Estimate (CSE)	-69 408	-33 067	-29 854	-24 217	-26 833	-38 512
Transfers to producers from consumers	-80 268	-36 156	-29 409	-24 503	-26 629	-37 094
Other transfers from consumers	-1 699	-719	-1 547	-677	-959	-3 004
Transfers to consumers from taxpayers	4 992	3 544	653	571	589	800
Excess feed cost	7 567	265	448	391	167	785
Percentage CSE (%)	-33.38	-14.75	-5.45	-4.55	-5.06	-6.67
Consumer NPC (coeff.)	1.63	1.19	1.06	1.05	1.05	1.07
Consumer NAC (coeff.)	1.50	1.17	1.06	1.05	1.05	1.07
Total Support Estimate (TSE)	109 521	91 849	123 711	115 447	117 880	137 805
Transfers from consumers	81 967	36 875	30 955	25 180	27 589	40 097
Transfers from taxpayers	29 253	55 693	94 302	90 944	91 251	100 712
Budget revenues	-1 699	-719	-1 547	-677	-959	-3 004
Percentage TSE (% of GDP)	2.51	1.04	0.62	0.62	0.61	0.65
Total Budgetary Support Estimate (TBSE)	28 849	54 709	93 780	90 311	90 395	100 635
Percentage TBSE (% of GDP)	0.66	0.62	0.47	0.48	0.46	0.47
GDP deflator (1986-88 = 100)	100	149	240	233	240	247
Exchange rate (national currency per USD)	0.91	1.09	0.91	0.92	0.92	0.88

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient.

A/An/R/I: Area planted/Animal numbers/Receipts/Income.

European Economic Community (EEC) with 12 members for 1986-88; EU15 for 2000-02; and EU27 from 2021.

1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for the European Union are: wheat, maize, barley, oats, rice, rapeseed, sunflower, soybean, sugar, milk, beef and veal, sheep meat, pig meat, poultry, eggs, potatoes, tomatoes, plants and flowers, and wine.

Source: OECD (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

The Common Agricultural Policy (CAP) is the agricultural policy framework of the European Union. The current CAP 2023-27 entered into force on 1 January 2023. In addition to the CAP, Member States implement measures funded from national or sub-national budgets that target specific sub-sectors or objectives. These measures must comply with the European Union’s state aid rules and not distort competition within the common market (OECD, 2017[1]). The CAP 2023-27 is built around 10 specific objectives: ensuring a fair income for farmers; increasing competitiveness; improving the position of farmers in the food chain; climate change action; environmental care; preserving landscapes and biodiversity; supporting generational renewal; vibrant rural areas; protecting food and health quality; and fostering agricultural knowledge and innovation.

The CAP is organised in two pillars:

• Pillar 1, almost exclusively financed by the European Agricultural Guarantee Fund (EAGF), covers sectoral interventions, as well as direct payments to farmers.

• Pillar 2, financed by the European Agricultural Fund for Rural Development (EAFRD) and co-financed by the Member States, supports rural development policies.

Member States design and implement their own CAP Strategic Plans (CSPs) and have the flexibility to design schemes that meet the needs of their farming sector. There is one CSP for each Member State (except for Wallonia and Flanders in Belgium, which each have their own plan), making a total of 28 plans. The “Country snapshots” section below provides insights from all 28 CSPs.

The initially planned CAP 2023-27 budget is EUR 307 billion (USD 332 billion) for approximately 2 500 interventions, of which nearly two-thirds of the budget is allocated to Pillar 1. Member States can modify the budget allocation between the direct payments and rural development by transferring funds in either direction within predefined limits. Direct payments make up the bulk of CAP spending: these payments – representing 62% of planned expenditure under the CAP 2023-27 – are largely decoupled from production as they are based on farm area, and do not depend on current production decisions.

CAP measures designed to promote environmental and climate benefits are structured around a hierarchy that distinguishes between minimum environmental obligations and additional voluntary efforts. Conditionality requirements link direct payments and certain rural development measures to compliance with a series of rules relating to environmental requirements.1 In addition to these compulsory requirements, eco-schemes (within Pillar 1) and agri-environment-climate commitments together with other instruments such as support for certain investments (within Pillar 2) are voluntary measures designed by Member States to encourage, among other objectives, the adoption of specific farming practices with environmental and climate benefits. On average across all Member States, 24% of direct payments were allocated to eco-schemes.

Social conditionality requirements link farmer payments to compliance with certain labour laws, with administrative penalties for non-compliance. While some countries introduced this mechanism in 2023 (Austria, Luxembourg, France and Italy) and others in 2024 (Spain and Portugal), most Member States introduced them within the 2025 deadline (EC and Milieu Law & Policy Consulting, 2025[2]).

Direct payments

The Basic Income Support for Sustainability (BISS) is an annual payment decoupled from production based on the number of eligible hectares declared by active farmers. It is a mandatory part of the CAP and accounts for over half of the Pillar 1 envelope. Member States may reduce BISS payments by up to 85% for amounts exceeding EUR 60 000 (USD 65 000) per farm and may also apply a payment cap at EUR 100 000 (USD 108 000) per farm.

There are four other types of direct payments:

• Complementary Redistributive Income Support for Sustainability (CRISS), an extra payment for a small, fixed number of hectares for farmers receiving the BISS.

• Complementary Income Support for Young Farmers (CIS-YF), a voluntary scheme in the form of a lump-sum payment or an amount per hectare defined by each Member State and aimed at providing enhanced income support to young farmers.

• Coupled Income Support (CIS), paid per animal or hectare subject to various conditions, including restriction to specific commodities and the requirement that support be targeted at clearly defined objectives.

• Schemes for the climate, the environment and animal welfare (eco-schemes), which reward farmers who adopt more sustainable farming methods.

Coupled income support (CIS) accounts for 7.5% of the financial allocations under the CAP Strategic Plans. Most of the support is provided for livestock (beef, dairy, sheep, and goats), protein crops, cereals, rice, and some specialised crops like vegetables, sugar beet and starch potato production (Table 12.2).

Table 12.2. Coupled Income Support: Planned budget under CAP Strategic Plans 2023-27

Budget (EUR)	23.177 billion
Share of total CSP	7.5%

Note: Data refer to CSP 2023-27 aggregate planned budget, as available in the sources below, accessed in April 2026. Figures refer to EU funding. Estimated shares are calculated by the OECD. “Others” category covers oilseeds (0.99%), olives (0.85%), potatoes (0.44%), nuts (0.36%), seeds (0.31%), dried fodder (0.24%), hops (0.1%), hemp (0.04%), flax (0.01%), silkworms (0.01%). F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plans by country and national CAP Strategic Plans, accessible from the European Commission’s website (EC, 2026[3]).

Member States that joined the European Union after 2000 may continue to implement Transitional National Aid (TNA), originally introduced as temporary national support measures enabling these countries to supplement EU‑funded direct payments during the first years after accession. TNA is granted from national budgets and is mostly disbursed as decoupled payments, though limited commodity-specific payments are allowed. TNA may apply on a per hectare basis to arable land, hops and starch potatoes; on a volume basis to milk; and as a headage payment to livestock. Member States may review TNA budgets and supported commodities on an annual basis.

Member States can also choose to implement the Payment for Small Farmers (PSF), a simplified income support intervention replacing all other forms of income support payment. Farmers applying for the PSF cannot receive any other direct payment and the payment may not exceed EUR 2 500 (USD 2 706). Small farms with an agricultural area of less than 10 ha are exempt from inspections regarding conditionality.

The POSEI scheme (Programmes dʼOptions Spécifiques à lʼEloignement et à lʼInsularité) supports farming in the European Union’s outermost regions by using production-related payments. The scheme supports access to food, feed and inputs for local communities, as well as the development of local agricultural production. It represented 1.2% of the direct payments’ envelope in 2025.

Sectoral interventions and market-related measures

Market-related support to specific sectors – the so-called sectoral interventions – is financed under Pillar 1 and accounts for 3% of total financial allocations under the CSPs, with around 90% directed at the fruit and vegetables and wine sectors (Table 12.3). Support to fruit and vegetables is provided through operational programmes for producer organisation members. They cover production planning, quality improvement, market withdrawal, harvest insurance, training, promotion and communication, either at farm or sector level. The wine and apiculture sectors are supported through specific interventions. The wine sector receives support for promotion, vineyard restructuring, green harvesting compensation, mutual funds, investments, income insurance, product and process development, and by-product distillation. The apiculture sector benefits from advisory services, technical assistance, training, hive preservation or expansion, and product quality enhancement, with measures co-financed by Member States at a minimum rate of 50%.

Table 12.3. Sectoral interventions: Planned budget under CAP Strategic Plans 2023-27

Budget (EUR)	9.463 billion
Share of total CSP	3.1%

Note: Data refer to CSP 2023-27 aggregate planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. “Others” category covers eggs (0.35%), milk (0.3%), protein crops (0.26%), dried fodder (0.25%), ornamental plants (0.23%), beef & veal (0.14%), hops (0.12%), pig meat (0.07%), cereals (0.02%), rabbit meat (0.02%), sheep & goat meat (0.02%), rice (0.01%), shelled leguminous vegetables (0.001%). F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plans by country and national CAP Strategic Plans, accessible from the European Commission’s website (EC, 2026[3]).

Member States may implement and finance certain market-related measures outside their CSP. Those include special supply arrangements under the POSEI and Smaller Aegean Islands schemes (e.g. duty exemption and food aid), as well as the promotion of agricultural products and quality schemes within the Union and in third countries. Pillar 1 also funds the school schemes for the distribution of milk, fruit and vegetables, with a total budget of EUR 220.8 million (USD 239 million) per school year, of which up to EUR 130.6 million (USD 141.4 million) for fruit and vegetables and up to EUR 90.1 million (USD 97.5 million) for milk (European Parliament, 2023[4]).

Additional measures aimed at stabilising agricultural markets include public intervention and aid for private storage. Intervention prices are used for some products including cereals, rice, sugar, beef, butter and skimmed milk powder (SMP). While intervention purchases are allowed, they have rarely been used.

During times of low market prices, the European Union may provide support to private sector operators by paying for the cost of storage of their products for a set period. Private storage may be activated as an optional scheme for butter, SMP, certain cheeses, olive oil, flax fibre, beef, pig meat, sheep meat and goat meat. This opportunity was opened for butter, SMP, cheese, beef and sheep meat in 2020‑21 in response to the COVID-19 emergency and for pig meat in 2022 in response to Russia’s war of aggression against Ukraine (OECD, 2023[5]).

In addition to internal market intervention, the European Union uses a range of trade-related measures, including import and export licences, import duties, tariff-rate quotas (TRQs) and safeguards measures. For certain products, an entry price system (minimum import price) applies alongside ad valorem duties. TRQs are used across a broad range of agricultural products, including beef, sheep meat, pig meat, poultry, eggs, dairy products, cereals, sugar, and certain fruit and vegetables. The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2024 was 10.5%, above the 4.1% faced by non-agricultural products. Certain sectors face significantly higher rates, such as dairy (27.1% on average), sugars (18.1%) and live animals and meat (15.4%) (WTO, 2025[6]).

Furthermore, exceptional measures are implemented to prevent a sudden decline in prices or to mitigate its effects during periods of significant market imbalances, a loss of consumer confidence due to public, animal or plant health risks, or other specific problems (EC, n.d.[7]). An agricultural reserve of at least EUR 450 million (USD 487 million) can be directed from Pillar 1 towards such exceptional measures as well as emergency buying and private storage aid. Farmers may also receive financial assistance from Member States’ national budgets to address market failures or the consequences of extreme weather events. These “state aids” are subject to approval from the European Commission.

Rural development

Under the CAP 2023-27, rural development (RD) interventions will receive EUR 64 billion (USD 69 billion) from the EU budget and EUR 43 billion (USD 46.5 billion) from national funds. Eighteen Member States plan to allocate further national financing (national top-ups) amounting to an additional EUR 13.5 billion (USD 15 billion), mainly to actions for investment and practices related to environment, climate and animal welfare (EC, 2026[8]). The rural development support extends to beneficiaries beyond farmers, including forest owners and municipalities, with most of it provided through multiannual area-based payments and a smaller portion based on animal numbers. Support for projects and investments is primarily provided through capital grants and reimbursements, while financial instruments such as guarantees and loans are also used to reduce credit constraints and support investments aimed at improving producer viability.

Member States have designed nearly 1 200 country-specific interventions, organised into eight broad intervention types:

• Agri-environment-climate commitments (ENVCLIM) account for the largest share of CAP-RD funding (32%), financing 397 interventions focused on areas such as organic farming, animal welfare, agroforestry, biodiversity and the conservation of traditional varieties or local breeds.

• Investments (INVEST) receive 29% of funding and support productive and non-productive investments, on- and off-farm, including irrigation.

• Areas facing natural or other specific constraints (ANC) account for 17% of funding, providing per-hectare payments to compensate farmers in mountain or otherwise constrained regions for additional costs and income foregone.

• Cooperation (COOP), with 10% of funding, promotes knowledge, innovation and digitalisation through instruments such as EIP-AGRI operational groups, LEADER projects, quality schemes and producer groups.

• Installation aid (INSTAL, 5%) supports generational renewal and rural business start-ups through grants or financial instruments.

• Risk management tools (RISK, 4%) contribute to insurance premiums and mutual funds.

• Knowledge and advice (KNOW, 2%) funds training, advisory services and information dissemination aligned with Agricultural Knowledge and Innovation Systems (AKIS).

• Area-specific disadvantages (ASD, 1%) provide area-based compensation for costs linked to mandatory environmental requirements, including in Natura 2000 and river basin management areas (OECD, 2025[9]).

CAP measures to promote environmental and climate benefits

The “green architecture” of the CAP 2023-27 is based on a hierarchy of actions and compensation that distinguish between minimum obligations and extra effort. At its core is “enhanced conditionality” which links direct payments and some rural development measures to compliance with environment, food safety, animal and plant health, animal welfare rules, including maintaining agricultural land in Good Agricultural and Environmental Condition (GAEC) (OECD, 2023[10]). These requirements are defined in terms of nine GAECs. These include protection of wetland and peatland (GAEC 2), the maintenance of permanent grasslands and the protection of environmentally sensitive permanent grasslands (GAEC 1 and 9), crop diversification (GAEC 7) and areas beneficial for biodiversity (GAEC 8).

A share of spending must be dedicated to environmental, climate, or animal welfare goals. Each Member State must include at least one eco-scheme in their CSPs and allocate a minimum of 25% of direct payment funding for these measures unless higher environmental spending under rural development allows a lower share. Eco-schemes encourage the adoption of specific farming practices and are granted per hectare (in a few cases per livestock unit), similar to the agri-environmental support schemes of Pillar 2, or as fixed top-up payments in addition to decoupled direct payments. Environmental objectives are also integrated into sectoral support, notably in fruit and vegetables, with mandatory minimum spending on environment and climate change mitigation and adaptation. Finally, at least 35% of EAFRD rural development funding must target environmental, climate, or animal welfare goals.

Policies for agricultural knowledge and innovation

Horizon Europe (HE) is the EU’s primary fund for fostering research and innovation, including in agriculture, mainly through Cluster 6 “Food, Bioeconomy, Natural Resources, Agriculture, and Environment”. It acts primarily through grants, research partnerships, and EU‑wide missions that align funding with strategic priorities. Under HE several projects have been financed with the objective of building solutions for a more sustainable agricultural sector. These projects cover areas such as precision farming, sustainable fertiliser production, agroecology, as well as animal, plant and soil health

The European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-AGRI) channels funding from CAP and HE to bottom-up multi-actor public-private agricultural innovation partnerships. This approach enhances collaboration within the Agricultural Knowledge and Innovation System (AKIS) in Europe and bridges the gap between research and practical farming (OECD, 2024[11]).

EIP Operational Groups (OGs) are muti-actor partnerships that bring together farmers, researchers, advisors, businesses, and environmental groups to foster innovation in agriculture, forestry, and rural areas. They focus on testing and applying innovation in real farming and rural contexts. There were approximately 5 100 OG projects as of March 2026 (EU CAP Network, 2026[12]).

Overview of the CAP Strategic Plans

The CAP 2023-27 can be implemented flexibly by Member States subject to some mandatory requirements. Member States must allocate 25% of their direct payments for eco-schemes and reserve at least 10% of their direct payments for the Complementary Redistributive Income Support for Sustainability (CRISS).2 As for Rural Development, not all Member States may choose among some or all eight types of interventions according to their priorities and can implement specific schemes using only national funding. The share of each country’s CSP dedicated to rural development varies greatly, with an EU-wide average of 35.5%, ranging from a minimum of 17.1% to a maximum of 73.3% (EC, 2026[3]).

All Member States except the Netherlands use Coupled Income Support (CIS) to target specific commodities and all allocate funding for sectoral interventions, although the level of support varies across countries (Figure 12.4). Regarding sectoral interventions, support is mandatory for apiculture and must be nationally cofinanced at a minimum rate of 50%. Support for fruit and vegetables is mandatory only for Member States with recognised producer organisations, while wine support applies exclusively to wine-producing countries. All other sectoral interventions are left to national discretion (EC, 2025[13]). Additional details on the specific commodities and sectors targeted by each Member State, as well as their respective budget shares, can be found in the “Country Snapshots” below.

Figure 12.4. Share of the CSP budget targeting specific commodities and sectors

Source: At a glance CAP Strategic Plans by country (total CSP budget) and national CAP Strategic Plans (SI total budget and distribution by sectors). Sources accessible from the European Commission website (EC, 2026[3]).

Recent policy developments

Domestic policy developments in 2025-26

Agri-environmental sustainability

Building on measures adopted in 2024, another CAP simplification package entered into force in January 2026 to further ease administrative burdens and increase flexibility for both farmers and national administrations. Farms certified as organic are now deemed compliant with certain GAECs, and Member States are also allowed to grant support to farmers to help them comply with GAEC 2 (protection of wetland and peatland) and GAEC 9 (protection of environmentally sensitive permanent grasslands). Member States can also eliminate on-farm inspections for interventions that are already monitored by satellite data.

From 2026, Member States may streamline corrective actions across the main CAP control systems – geospatial land identification, farmer declarations, and satellite‑based monitoring – thereby reducing administrative duplication and the need for on‑farm visits. The “once‑only” inspection principle has been reinforced, limiting farmers to a single official on‑farm inspection per year. In addition, European Commission approval is now required only for amendments deemed strategic to CSPs, granting Member States greater flexibility in adjusting implementation. The Water Resilience Strategy (EC, 2025[14]) was adopted in June 2025, with the objectives of (i) restoring and protecting the water cycle as the foundation of sustainable water supply; (ii) building a water‑smart economy that supports EU competitiveness, attracts investment, and strengthens the EU water industry; (iii) ensuring clean, affordable water and sanitation for all, and (iv) empower citizens to contribute to water resilience.

The Strategy for a Competitive and Sustainable EU Bioeconomy (EC, 2025[15]) was launched in November 2025. It seeks to stimulate innovation and support European companies in the green transition by promoting circular and sustainable production and consumption of biological resources. The aim of the strategy is to boost the development of bio-based products and to accelerate their wide-spread deployment, including measures that enable farmers and agri‑food businesses to supply and valorise biomass more efficiently.

The Soil Monitoring Law entered into force in December 2025. The law aims to establish an EU‑wide framework for monitoring and assessing soil health and resilience in order to halt soil degradation and support the achievement of healthy soils across the European Union by 2050. Member States have three years to transfer it into national law and six years for first reporting. The law requires Member States to monitor and assess soil health, as well as support farmers and land managers to improve soil health through advice, training, capacity building, awareness‑raising, research and innovation. The law also provides a framework for addressing the long‑standing issue of contaminated sites.

Promotion

The EU agri-food promotion policy will expand in 2026, through the allocation of EUR 205 million (USD 232 million) of EU funds to co-finance activities aimed at enhancing the visibility of EU agri-food products, including EUR 160 million (USD 181 million) in grants for promotion programmes in the Union and global markets, of which EUR 10 million (USD 11 million) are reserved for crisis‑related measures. Adopted in December 2025, the 2026 programme introduces a new EU‑wide campaign aimed at strengthening consumer engagement for domestically produced EU agri-food products, while intensifying outreach through promotion activities in high‑growth external markets such as the United Kingdom, Japan, Korea, the People’s Republic of China (hereafter “China”), Singapore and North America (EC, 2025[16]).

Digitalisation and data

In October 2025, the European Partnership Agriculture of Data was officially launched (EC, 2025[17]). This new Horizon Europe partnership brings together research centres, funding bodies, and national authorities from EU Member States and Associated Countries to accelerate the digital transformation of European agriculture. It will run for at least seven years and has a planned budget of EUR 300 million (USD 339 million), 30% of which will be co‑funded by the European Union while the remaining 70% will be financed by participating Member States and Associated Countries.

Domestic policy responses to ongoing crises, market imbalances and natural disasters

Two new regulations were introduced in September 2025 to allow Member States to raise the level of advance payments for the 2025 claim year: maximum advances for rural development support measures were increased from 75% to 85%, and 70% of direct payments could rise from the usual 50%. Larger advances aim to address liquidity issues and alleviate financial pressure on farmers caused by tariff increases imposed by the United States, the ongoing war in Ukraine, the consequences of the conflicts in the Middle East, as well as extreme weather events, impacting the prices of agricultural inputs and commodities.

A new temporary measure (M23: “Natural Disasters”) was introduced under the EAFRD 2014‑223 to mitigate the impact of adverse climatic events that affected certain farmers across Europe. The measure provides a one-off lump-sum payment, to be disbursed by 31 December 2025, to affected farmers, forest holders and SMEs active in agricultural and forestry processing and marketing, with the aim of ensuring continuity of their business activity (EC, 2024[18]). The measure was implemented by Cyprus, Croatia, Estonia, France, Greece, Italy, Spain and Portugal.

In 2025, several crisis‑response mobilisations were activated under the agricultural reserve, including EUR 98.6 million (USD 111 million) in March 2025 to provide support to farmers in Croatia, Cyprus, Hungary, Latvia and Spain affected by severe climatic events and natural disasters since spring 2024 (EC, 2025[19]); EUR 15 million (USD 17 million) in May 2025 to assist farmers in Czechia, Germany and Slovenia facing losses linked to adverse weather events and an animal disease outbreak (EC, 2025[20]); EUR 14 million (USD 16 million) in July 2025 to compensate Polish farmers in areas affected by avian flu outbreaks in 2023 (EC, 2025[21]); and nearly EUR  50  million in October 2025 to support fruit, nut and vegetable producers in Bulgaria, Hungary, Latvia, Lithuania, Poland and Romania affected by adverse climatic conditions (EC, 2025[22]).

Strategy for generational renewal in agriculture

The European Commission recommends that, under the CAP 2028-34, Member States will allocate at least 6% of their agricultural expenditure to measures that promote generational renewal in agriculture. This recommendation comes from the Strategy for Generational Renewal in Agriculture (EC, 2025[23]), presented in October 2025. The objective of this strategy is doubling the share of young farmers in the European Union by 2040, addressing the present imbalance in which young and new farmers account for less than one-quarter of all EU farmers. In the next programming period 2028-34, the Member States will also be asked to prepare a Strategy on Generational Renewal to enhance the effectiveness and coherence of interventions targeting young farmers.

The CAP proposal for 2028-34 (EC, 2025[24]) released on 16 July 2025, includes several measures linked to the strategy for generational renewal. Young farmers would benefit from a wide range of tools provided in a “starter pack”, including support for the setting-up and targeted area-based payments. In addition, the CAP post-2027 would aim to improve young farmers’ access to training, mentoring, and other forms of support, including knowledge transfer, advisory services, and skills development.

Box 12.1. The European Commission’s proposal for the CAP 2028-34

In the framework of the new Multiannual Financial Framework (MFF) (EC, 2025[25]), the European Commission has proposed that the CAP post-2027 will be integrated into the National and Regional Partnership Plans, which bring together existing EU funding programmes under a harmonised framework. For the CAP, this would imply moving away from the current two‑pillar structure (based on the EAGF and the EAFRD) and merging the two funds. This new structure would remove existing constraints on transfers between pillars.

The main features of the proposed new Common Agricultural Policy 2028-34 (EC, 2025[24]) are: i) a secured budget for farmers with a ring-fenced amount ii) a single rulebook for the CAP, with new streamlined payments, aimed at reducing the burden for both farmers and administrations; iii) a more targeted distribution of funds to better support the diversity of the EU farming sector; iv) a framework that facilitates synergies with other policies to achieve a stronger impact on EU agriculture and rural areas.

The proposal also includes the introduction of a new approach to environmental and climate priorities that replaces the current conditionality with a “farm stewardship” system and a unified framework for agri‑environmental and climate actions that rewards farmers for their contributions. It also includes transitional payments to support the adoption of specific farming practices, such as organic farming (EC, 2025[26]).

Trade policy developments in 2025-26

Trade agreements

EU trade policy made significant progress on several market-opening initiatives, most notably with the signature of the EU-Mercosur Partnership Agreement (EMPA) and the related Interim Trade Agreement (iTA) on 17 January 2026. Reflecting both the EU’s aim to diversify trade partnerships and the political sensitivities surrounding agricultural market access, the agreements extend preferential treatment to goods traded with Mercosur while safeguarding sensitive EU agricultural sectors through tariff‑rate quotas (e.g. for beef, poultry, rice and sugar) and bilateral safeguard mechanisms that allow for the temporary suspension of preferences in the event of potentially harmful import surges. All four Mercosur partners had ratified both agreements by March 2026, when Paraguay completed the ratification process. On the European side, however, the agreements are undergoing legal review following the European Parliament’s request of 21 January 2026 for the European Court of Justice to assess their compatibility with EU treaties. The iTA, covers trade and investment matters under the EU's competence.4

The European Union also concluded negotiations of a Free Trade Agreement with India on 27 January 2026. Once in force, the agreement will improve market access for EU agri-food products by eliminating or reducing India’s tariffs (currently averaging 36%) for selected products. Notably, tariffs on wine will be reduced progressively from 150% to 75%, before falling to 30% for most wines, while the 45% tariff on olive oil will be eliminated within five years. At the same time, several sensitive EU agricultural sectors such as beef, poultry, rice and sugar remain excluded from liberalisation for products imported from India. In parallel, the European Union and India are negotiating a separate agreement on Geographical Indications (GIs) to strengthen the protection of EU food and drink products against misuse of GIs and potential unfair competition in the Indian market (EC, 2026[27]).

Two months later, in March 2026, the European Union and Australia concluded negotiations for a free trade agreement after nearly eight years of discussions. Once in force, the agreement is expected to improve market access for EU farmers by eliminating Australian tariffs across all EU agri-food exports, including key products such as cheese, processed foods and wine. At the same time, it provides safeguards for sensitive EU agricultural sectors through tariff-rate quotas (e.g. for beef, sheep meat, dairy, rice and sugar) and bilateral safeguard mechanisms, while also protecting nearly 400 European geographical indications (GIs).

On 17 January 2025, negotiations on the EU-Mexico Modernised Global Agreement (MGA) and accompanying interim Trade Agreement (iTA) were concluded.5 Subject to the completion of the EU’s internal procedures, the agreement is expected to eliminate the remaining tariffs on a wide range of EU agri-food exports – including cheese, poultry, pork, pasta, apples, jam, chocolate, wine – and extend GI protection to 568 European products (EC, 2025[28]). On 29 October 2025, the revised and upgraded EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) entered into force, introducing further concessions in bilateral trade through additional tariff rate quotas and further reductions or eliminations of duties on agricultural products within the broader Ukraine’s accession context. A safeguard clause enables both parties to adopt appropriate measures in situations where imports might cause serious difficulties (EC, 2025[28]). On 4 October 2025, the updated terms of the EU-Moldova DCFTA entered into force, providing further tariff concessions in bilateral trade. On the European Union side, these included increased tariff-rate quotas or the elimination of customs duties on seven Moldovan agricultural products not yet liberalised – that is plums, table grapes, apples, cherries, grape juice, tomatoes and garlic (European Council, 2025[29]).

Trade policy responses to ongoing crises

The Autonomous Trade Measures (ATMs) for Ukraine and Moldova were not extended past June and July 2025, respectively, as the European Union decided to transition to a longer-term framework in which all preferential market access would be integrated into revised DCFTAs. As a result, the European Union temporarily reverted to the pre-war trade regime for the products concerned, pending the entry into force of the updated DCFTA provisions.

Several EU border states – Poland, Hungary, and Slovakia – kept unilateral bans on certain Ukrainian agricultural products, in place since 2023, after the revised EU-Ukraine DCFTA entered into force in October 2025. Hungary made product-specific adjustments to these bans, lifting its import restriction on millet in February 2025 following the removal of its import ban on honey the previous year. In parallel, Ukraine extended its export licensing regime for certain grains and oilseeds until the end of 2026 to address concerns raised by Poland, Hungary, Slovakia, Bulgaria, and Romania about potential market disruptions. A licensing and quota regime for sugar exports was also introduced in 2026. Additionally, Romania established its own import licensing mechanism for the same set of products, complementing Ukraine’s export controls.

The EU’s trade policy response toward the United States initially took the form of retaliatory tariffs on US agri‑food imports, implemented in two phases in April 2025 following successive US tariff increases. Those countermeasures targeted a range of products, including soybeans, beef, sugar, dairy and pork. Subsequently, the EU-US Tariff Deal announced in July 2025 established a framework for stabilising bilateral trade and potentially reducing agricultural barriers for selected products. Following this agreement, the European Union suspended its retaliatory measures shortly thereafter.

Country snapshots

This section presents 27 country snapshots, one for each EU Member State, detailing how their respective CAP Strategic Plans (CSP) allocate budgets to specific commodities and sectors for the 2023‑27 period. Each snapshot also summarises the amendments made to the national CSP, highlights key implementation achievements and challenges encountered, and presents concise descriptions of other important national policy developments in 2025 and early 2026.

Austria

CAP Strategic Plans (CSP): Implementation in 2025-26

• Approved in September 2025, the third amendment of the Austrian CSP introduces two new funding items related to fruit and vegetables and updates the Investments in Renewable Energy measure and the LEADER programme.

• To consolidate the federal budget, the allocations for several measures within the CSP are reduced. The cuts concern in particular the additional national financing for processing and marketing, knowledge transfer, areas facing natural or other specific constraints, and investments in agricultural production.

Table 12.4. Austria’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	90.0 million	Sectoral interventions (SI)	Budget (EUR)	100.2 million
	Share of total CSP	1.0%		Share of total CSP	1.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The National Coordination Centre for Sustainable Food Systems, established in 2023 originally for a period of two years to co‑ordinate related policy measures, has been extended until 2027.

• The amended Animal Protection Law, in force since June 2025, generally prohibits pig husbandry on fully slatted floors on 1 June 2034, six years earlier than originally planned. The law prescribes more space, structured bays, air conditioning and more activity material for the animals.

• With implementation of the first amendment of the Austrian Agricultural Environmental Programme ÖPUL from January 2025, additional measures relate to non-productive crop land, agro-forestry, and organic agriculture.

• The new “Peatland Platform”, established in November 2025, aims to advance the protection and renaturation of peatland areas in Austria.

• A new special guideline from August 2025 integrates agriculture and forestry in a system supporting the vocational high school degree for apprentices to raise the attractiveness of related professions.

Belgium

CAP Strategic Plans (CSP): Implementation in 2025-26

• Updates to the Flemish and Walloon CSPs in 2025 include revised GAEC requirements, changes to coupled support and investment measures reflecting revised eligibility conditions and adjusted unit payment levels, as well as updated definitions of young and active farmers.

• Eco-scheme participation remained high in both regions, with strong uptake in Flanders and increased compliance flexibility in Wallonia to facilitate broader participation.

Table 12.5. Flanders and Wallonia’s CSP planned budget targeting specific commodities and sectors

Flanders	Coupled income support (CIS)	Budget (EUR)	83.6 million	Sectoral interventions (SI)	Budget (EUR)	389.5 million
		Share of total CSP	4.1%		Share of total CSP	19.0%
Wallonia	Coupled income support (CIS)	Budget (EUR)	282.9 million	Sectoral interventions (SI)	Budget (EUR)	2.1 million
		Share of total CSP	15.2%		Share of total CSP	0.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In 2025, Flanders updated its Energy and Climate Plan expanding methane-reduction measures and additional carbon removal requirements for agricultural land. Wallonia updated its Air-Climate Energy plan 2030 with technical tools to assess ammonia and GHG emissions at the farm level.

• Wallonia announced a new 2026‑2029 action programme under the Food Wallonia plan focused on food waste, collective catering and food access initiatives.

• Flanders launched the Carbon Removals & Carbon Farming Action Platform in line with the EU CRCF certification framework. Wallonia conducted open dialogues on carbon-removal certification.

• Circular and bio-economy initiatives expanded in both regions. Flanders developed new projects for food-loss prevention, and Wallonia expanded actions for developing bio-based value chains.

Bulgaria

CAP Strategic Plans (CSP): Implementation in 2025-26

• In August 2025, Bulgaria adopted the third amendment to its CSP, introducing a new EUR 65 million intervention promoting environmentally friendly practices (financed partly through a transfer from the intervention supporting integrated production practices). It also increased support for organic crop production, raised the investment ceiling for rural infrastructure projects from EUR 100 000 to EUR 500 000, and increased public support for crop insurance to 70% of premiums.

• Implementation of the CSP accelerated in 2025, with investment calls totalling around EUR 278 million by December, prioritising structurally weaker sectors such as horticulture, livestock and organic farming. These calls are intended to boost investment and improve absorption of CAP funds while addressing competitiveness gaps.

Table 12.6. Bulgaria’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	615.9 million	Sectoral interventions (SI)	Budget (EUR)	124.8 million
	Share of total CSP	8.0%		Share of total CSP	1.6%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In May 2025, Bulgaria advanced amendments to the Water Act related to irrigation, classifying irrigation water supply as a service of general economic interest, which allows the government to grant preferential pricing and other benefits to farmers using irrigation water.

• BGN 28.5 million (EUR 14.6 million) were provided in compensation for fruit growers affected by spring frost, and over BGN 8 million (EUR 4.1 million) for related crop losses, including EUR 7.4 million from the EU agricultural reserve.

• Bulgaria launched “Shop for the People” EAD, a state-owned retail initiative under the Ministry of Agriculture and Food aimed at improving access to affordable essential goods and giving priority to products from Bulgarian producers. Established with BGN 10 million (EUR 5.1 million) in initial capital it crates partnerships with cooperative and regional networks, with markups of up to 10% on selected basic goods.

Croatia

CAP Strategic Plans (CSP): Implementation in 2025-26

• The third amendment to Croatia’s CAP Strategic Plan, approved in October 2025, clarified conditionality rules, simplified eligibility for various interventions, and transferred several small-scale measures to national funding to reduce administrative burden and accelerate the implementation of the remaining CAP interventions.

• Eleven calls for project- and investment-based were published, while several simplifications were introduced for direct payments and area-based payments interventions. Uptake of several eco-schemes exceeded expectations, prompting internal reallocation of funds within the direct payments envelope to ensure payment of the minimum unit amounts, and beneficiary interest increased for agri-environment and animal welfare interventions.

Table 12.7. Croatia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	281.1 million	Sectoral interventions (SI)	Budget (EUR)	61.6 million
	Share of total CSP	7.5%		Share of total CSP	1.6%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The focus of the Agricultural Knowledge and Innovation System (AKIS) shifted from structural establishment to full operationalisation in 2025. To accelerate the uptake of innovative and sustainable farming practices, the Ministry put extra effort on identifying farmers’ knowledge needs and tailoring advisory and training activities accordingly.

• National support measures – such as compensation schemes for farmers affected by adverse climatic conditions, crisis support, maintaining production in vulnerable sectors and regions – were implemented with increased emphasis on resilience to climate-related risks and crisis response. Combined with CAP instruments, the national interventions aimed to play a complementary role in enhancing the overall adaptive capacity of the agricultural sector.

• Under the National Recovery and Resilience Plan (NRRP), EUR 81.8 million was invested to establish five logistics and distribution centres (LDCs) for fruits and vegetables; two centres became operational by February 2026, with the remaining three scheduled for completion within the year to improve market access and reduce post-harvest losses.

Cyprus

CAP Strategic Plans (CSP): Implementation in 2025-26

• Applications for the Major Investment Measure opened in June 2025, with a EUR 60 million budget. It covers three interventions: supporting investments aimed at modernising farms and livestock holdings, enhancing environmental protection and animal welfare, and improving livestock-waste processing and management. Environmental projects can receive up to 80% of eligible costs.

• Applications for the Young Farmers Installation intervention also opened in June 2025, with EUR 7.5 million allocated to address workforce aging and support the establishment of economically viable and competitive farms.

• The interest in the Small Investment scheme exceeded expectations, with eligible applications amounting to EUR 12.7 million, compared with the EUR 10 million initial target.

Table 12.8. Cyprus’ CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	21.3 million	Sectoral interventions (SI)	Budget (EUR)	18.1 million
	Share of total CSP	4.7%		Share of total CSP	4.0%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Under the Major Investment Measure, the Cyprus Electricity Authority established a dedicated financing facility for farmers to install grid‑connected photovoltaic systems, while parallel governmental efforts – supported by the Ministry of Interior and other bodies – simplified licensing procedures to accelerate applications, streamline approvals, and boost investment uptake.

• Following significant low rainfall and high temperatures in early 2024 that affected cereals, olives, and fruit and vegetable production, EUR 3.5 million was mobilised from the European agricultural reserve in May 2025 to compensate farmers for their losses.

• The outbreak of the Foot-and-mouth disease in February 2026 led to the culling of infected animals and the launch of a vaccination campaign, alongside movement restrictions and biosecurity measures.

• A new nationally funded research programme will assess GHG emissions from Cyprus’ livestock sector. The data gathered will support the design of future rural development measures.

Czechia

CAP Strategic Plans (CSP): Implementation in 2025-26

• In 2025, updates to the CAP Strategic Plan introduced adjustments to rural‑development interventions, including revised unit amounts, rates and allocations, and reformed the eco‑scheme from a single whole‑farm payment into four distinct support types covering new landscape elements, maintenance of existing ones, sustainable nutrient management and strip‑crop rotation

• The 6th rural development call for applications supported investment with preferential treatment for small enterprises and school farms. It also provided fixed‑rate support to new entrants (with higher rates when processing is added to production) and innovation grants for co‑operation projects.

Table 12.9. Czechia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	617.6 million	Sectoral interventions (SI)	Budget (EUR)	124.9 million
	Share of total CSP	7.7%		Share of total CSP	1.6%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Following the severe floods of September 2024, compensation amounting to CZK 165.4 million (USD 7.6 million) for crop losses was provided in May 2025 from the European agricultural reserve, along with CZK 2.5 million (USD 0.1 million) in state aid for livestock losses.

• Several state aid schemes were streamlined, including shifting programmes to rate based payments and reducing documentation requirements, to simplify procedures and significantly cut administrative burden for beneficiaries.

• Important regulatory changes were advanced in 2025, introducing in July a formal legal definition of family farms, with clear eligibility criteria, a national registry, and regulated use of the designation to improve policy targeting. Since October, the amended Act on the State Land Office aims to, among others, expand municipal access to state land, strengthen preferential access for young farmers, accelerate land‑consolidation procedures, and enhance the state’s role in soil protection.

• In January 2026, the new government adopted its Programme Statement, setting priorities for agriculture such as increasing productivity, added value and innovation, redirecting support towards active producers, and fostering rural-urban integration.

Denmark

CAP Strategic Plans (CSP): Implementation in 2025-26

• In 2025, Denmark amended its CAP Strategic Plan to transfer funds from Pillar 1 to Pillar 2 in support of the Agreement on a Green Denmark and the Green Area Fund.

• Implementation progressed steadily in 2025. Uptake of eco-schemes stabilised following design adjustments introduced from 2024, and most Pillar 2 interventions have now been launched at least once. Payments and outputs are increasingly materialising, although impacts remain gradual due to multiannual project cycles.

Table 12.10. Denmark’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	203.1 million	Sectoral interventions (SI)	Budget (EUR)	39.2 million
	Share of total CSP	4.1%		Share of total CSP	0.8%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• New nitrogen regulation model: since December 2025 a new framework shifts input-based fertiliser limits to farm-level quotas for nitrogen losses to coastal waters from 2027. Catchment-level discharge limits will be translated into individual farm quotas, with flexibility mechanisms (e.g. crop choice, differentiated fertilisation, quota trading and organic conversion). Transitional compensation and targeted support, partly financed by CAP funds, will support implementation.

• Research and innovation system strengthening: in 2025, the Danish Government launched the “Accelerating Future Green Solutions” plan, allocating DKK 500 million annually focused on agriculture. The mission-driven approach supports the scale-up and demonstration of biosolutions, strengthens Denmark’s agricultural innovation system, and reinforces public–private collaboration.

• Climate measures: from January 2025, methane-reducing feed additives became mandatory for dairy cattle. Implementation of the 2024 livestock GHG taxation framework has advanced, including preparatory work on monitoring, reporting and verification systems ahead of the 2030 entry into force. Funding allocations under plant-based food schemes and biochar support continued in 2025, contributing to emission reductions and carbon removal in the land-use and agricultural sectors.

Estonia

CAP Strategic Plans (CSP): Implementation in 2025-26

• Third and fourth amendments to the CAP Strategic Plan were approved in 2025, adding new interventions (support for the restoration of agricultural production after natural disasters) and expanding budgets for animal disease related measures.

• The support eligibility was widened, support rates increased, and funds reallocated to match beneficiary demand, including for soil and water protection measures and for infrastructure investments).

• Eco-scheme uptake patterns varied, with simplifications planned for 2025–2026.

Table 12.11. Estonia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	131.0 million	Sectoral interventions (SI)	Budget (EUR)	1.4 million
	Share of total CSP	8.0%		Share of total CSP	0.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Estonia introduced a wide range of agricultural policy updates reflecting emerging challenges in innovation, climate resilience, animal health, and market transparency. A major focus is enhancing AKIS by clarifying roles among implementing bodies, improving EIP-AGRI innovation support (continuous applications, wider eligibility including co-operatives, shorter processing times), and tightening advisory service compliance rules with adjusted co-financing to better target support and ensure availability of funds throughout 2023‑2027.

• Estonia also advanced several investment support schemes to strengthen resilience in the face of climate shocks, energy insecurity, and severe livestock disease outbreaks – particularly foot and mouth disease (FMD) and African swine fever (ASF).

Finland

CAP Strategic Plans (CSP): Implementation in 2025-26

• Finland’s CAP Strategic Plan for 2023–2027 implementation is progressing as planned.

• Proposed amendments for 2026 aim to: (i) improve achievement of CAP objectives, (ii) ensure full use of EU funding, (iii) increase support levels for certain direct payments, and (iv) strengthen incentives and support for organic farming, some environmental measures, and constructed wetlands investments.

Table 12.12. Finland’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	505.4 million	Sectoral interventions (SI)	Budget (EUR)	24.9 million
	Share of total CSP	7.5%		Share of total CSP	0.4%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. “Others” category covers F&V (0.9%), bovine milk (0.6%), cereals (0.26%). F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Launched on 16 December 2025, the Finland’s National Food Strategy 2040 sets a long-term vision for a sustainable, resilient and competitive food system. Its implementation will occur through four-year action plans, with the first report to Parliament in early 2026.

• The comprehensive Rural Policy Report, released on 22 January 2026, outlines the state, trends, and a vision for rural Finland up to 2040. The report provides cross-sectoral recommendations and serves as a governmental strategic tool.

• From early 2026, the Ministry of Agriculture and forestry will operate through three new departments: (i) Food and Research Department – food security, animal/plant health, and welfare, (ii) Agriculture and Fisheries Department – national preparation and implementation of EU agricultural and fisheries policies, and (iii) Natural Resources Department – sustainable and secure management of renewable natural resources, guided by climate and biodiversity priorities.

France

CAP Strategic Plans (CSP): Implementation in 2025-26

• Amendments to the CSP approved in 2025 introduce simplifications for farmers, such as adjusting GAEC rules, easing access to coupled bovine support, adapting crop-insurance loss assessments, and simplifying the mutual fund scheme (FMSE), which is now financed solely through national funds. Key changes also include the implementation of EU regulations on the protection of wetlands and peatlands, as well as increases to the hedgerow bonus payment under the eco‑scheme and to the payment rate for the coupled support for starch potatoes.

• In 2025, the implementation of the CSP accelerated, notably in terms of payments for agricultural installation and investment. Eco-schemes recorded a high uptake, with 90% of direct payment applicants participating, while support for conversion to organic farming kept declining. Moreover, 30 000 young farmers received additional income support compared to 26 000 initially planned.

Table 12.13. France’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	5.067 billion	Sectoral interventions (SI)	Budget (EUR)	1.399 billion
	Share of total CSP	10.2%		Share of total CSP	2.8%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. “Others” category covers rice (0.18%), potatoes (0.18%), hemp (0.16%), hops (0.04%) for CIS, and milk (0.86%), olives (0.18%), rabbit meat (0.13%), rice (0.04%) for SI. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In support to the sector resilience, ten laureates were selected in July 2025, receiving EUR 11.7 million under the “Territorial Projects for Legume Sectors” call, promoting stakeholder collaboration for plant protein production. Moreover, an EUR 8 million aid scheme was launched for 2025-2027 for orchard renovation, supporting innovation, plant-disease control, and generational renewal.

• Nineteen research and action projects have been funded in 2025 for a total of EUR 2 million under the Ecoantibio 3 plan, to reinforce ongoing efforts to combat antibiotic resistance in animals.

• To strengthen sanitary and phytosanitary risk management, a EUR 45 million call for projects was launched in June 2025 under the PARSADA plan, supporting alternatives to certain plant protection products. Following the June 2025 Lumpy skin disease outbreaks, research efforts will intensify, focusing on surveillance, vaccination, diagnostics, transmission, and decision-support tools.

Germany

CAP Strategic Plans (CSP): Implementation in 2025-26

• During the implementation of the German CSP in 2025, the uptake of measures has significantly increased compared to the previous year. Almost all of the eco-scheme funds were used, though with varying uptake. Measures with specific management requirements and higher control costs attracted less interest. Further adjustments, such as management simplifications and a premium increase, are foreseen.

• In 2025, the introduction of the relevant IT reporting system has been successfully completed.

Table 12.14. Germany’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	429.1 million	Sectoral interventions (SI)	Budget (EUR)	312.7 million
	Share of total CSP	1.3%		Share of total CSP	0.9%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Changes have been made to simplify measures and reduce administrative burdens for farmers and other primary producers, and to improve planning certainty. Reporting requirements have been streamlined, funding procedures simplified and the coordination between the federal and Bundesländer level strengthened.

• In December 2025, the Federal Ministry of Agriculture, Food and Regional Identity (BMLEH) launched a new agricultural export strategy to realign export promotion, open up new markets and strengthen the long-term competitiveness of agri-food enterprises. The strategy aims to make export promotion programmes more efficient, more flexible and more targeted, with particular attention to the needs of SMEs.

• In 2025, five projects were launched to establish experimental fields for digitalisation and artificial intelligence (AI) in agriculture, with approximately EUR 10 million in funding allocated until 2028. In addition, the “Smart Farming” project supports the ISO’s Technical Committee 347 “data-driven agrifood systems”, of which Germany hosts the Secretariat.

Greece

CAP Strategic Plans (CSP): Implementation in 2025-26

• An amendment to the CSP 2023-27 was submitted end of 2025 to finalise three main financial instruments (microloans, first loss guarantees for general use, young farmers support), update GAECs 2 and 8, remove the new risk management measures (covered by the core mandatory scheme), expand the use of simplified cost options, and extend some 2014-22 programmes.

• Direct payments were implemented as planned. The most successful of the 10 eco-schemes were those rewarding the use of species and varieties facilitating climate change adaptation and resilience, supporting environmentally friendly practices with digital tool, and for organic farming.

• All major rural development interventions were launched in 2025, with 12 new calls and 5 pre-calls. Demands public irrigation works, processing investments, greenhouse modernisation and innovation partnerships were the highest, exceeding the allocated budget by more than 500%.

Table 12.15. Greece’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	1.226 billion	Sectoral interventions (SI)	Budget (EUR)	253.9 million
	Share of total CSP	8.6%		Share of total CSP	1.8%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Recovery from various extreme weather events (drought, floodings, fire, hail, etc.) led in 2025 to state aids exceeding EUR 100 million and the activation of Measure 23 of the RDP.

• Most contracts under “Ydor 2.0” (Water 2.0), an EU and national sources-funded programme for the construction of irrigation infrastructure via Public-Private Partnerships, were signed or finalised.

• Emergency support was provided to the livestock sector via an urgent legislation (National Law No. 5251/2025 and several Ministerial Decisions) and de minimis aid amounting to EUR 84 million, to address the sheep and goat pox outbreak that resulted in the culling of 5% of the herd in 2025 and caused significant losses in dairy and cheese production.

• The Greek Payment Authority for Agricultural Subsidy Schemes was reformed and integrated into the Independent Authority for Public Revenue, the centralised tax authority under the Ministry of Finance, initialising a new system of payments and controls, with greater use of digital tools.

Hungary

CAP Strategic Plans (CSP): Implementation in 2025-26

• CSP amendments in 2025 introduced measures to improve advisory services and market information for the wine sector, support water retention, and invest in irrigation and vocational training centres. To fund more beneficiaries, payments for generational renewal were reduced.

• Area claimed for complementary income support for young farmers (268 000 ha vs 119 000 ha planned) and agro-ecological programme uptake continued to exceed expectations. Applications were below expectation for coupled support for industrial oilseed crops and fattened bulls, and resources were reallocated from these envelopes.

• In 2025, Hungary launched 30 calls for grants under Pillar 2 of the CAP, e.g. on the technological development of horticultural plants, tackling antimicrobial resistance, support to young farmers, agroforestry practices and the creation of semi-natural and wetland areas on agricultural land.

Table 12.16. Hungary’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	994.9 million	Sectoral interventions (SI)	Budget (EUR)	207.7 million
	Share of total CSP	9.9%		Share of total CSP	2.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• After the severe drought of 2024, Hungary received EUR 16.2 million of exceptional assistance from the European Commission to compensate maize producers.

• Act CXXII on the Turnover of Agricultural and Forestry Land was amended, modifying the conditions for acquiring agricultural land and the rules for agricultural land leasing.

• A price margin cap (between purchase and sales) from March 2025 limits the margins retailers with a sales revenue over HUF 1 billion (EUR 2.5 million) can apply on certain essential food products.

• Between November 2025 and December 2026, farmers can take loans – for six years, worth HUF 1 million to HUF 1 billion (EUR 2 500 to EUR 2.5 million) – with subsidised interest rates through the Hungarian Development Bank. Sixty per cent of interest rates are covered by the state. For pig keepers, the interest rate is 100% subsidised.

• Act CXXIX was amended to allow the use of non-hazardous plant-based natural organic substances on arable land, facilitating on-site use of by-products and green waste from agriculture.

Ireland

CAP Strategic Plans (CSP): Implementation in 2025-26

• The Fifth Amendment to the CSP, adopted on 30 April 2025, introduced the final conditionality standard, GAEC 2 (protection of peatlands and wetlands) for claim year 2025.

• Three new EIP-AGRI proposals on the theme of generational renewal were funded in 2025, with an additional call opened for tillage projects focussing on enhancing habitats for biodiversity in tillage areas. A new 60% Nutrient Storage Grant Aid scheme for investments under the Targeted Agricultural Modernisation Scheme was introduced to reduce reliance on chemical fertiliser.

• Evaluation activities for habitats and biodiversity are carried out under contract over the next eight years, focusing on monitoring and assessing habitat quantity, connectivity and change. Field work to establish a baseline was conducted in summer 2025.

Table 12.17. Ireland’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	47.0 million	Sectoral interventions (SI)	Budget (EUR)	45.3 million
	Share of total CSP	0.5%		Share of total CSP	0.5%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Ireland’s Nitrates Derogation was extended for the period 2026-28, with additional conditions including the need to demonstrate enhanced compliance with the EU Habitats Directive.

• Unprotected urea (that is, urea that has not been coated with a urease inhibitor) in solid form is no longer be permitted to be spread on land since September 2025.

• The Organic Farming Scheme (OFS) received funding of EUR 67 million in 2025. The Green Public Procurement Strategy and Action Plan requires that a minimum of 10% of food purchased via public procurement must be certified organic.

• The maximum allowable crude protein in concentrates fed to adult cattle at grass was reduced to 14% during the period between 15 April and 30 September as a means to reduce GHG emissions.

Italy

CAP Strategic Plans: Implementation in 2025-26

• Italy introduced several updates to their CSP, including higher complementary income support for young farmers, and an additional support level under eco‑scheme 5 for farmers who allocate part of their land to fallow. Further adjustments concerned sectoral interventions, including expanded eligibility for irrigation investments in the wine sector and broader support options in beekeeping.

• Expenditures increased significantly in the 2025 financial year, with direct payments – including eco‑schemes – reaching close to 100% of planned expenditure. Rural development spending also advanced, particularly for agri‑environmental interventions and payments for natural or other area-specific constraints. Together with risk‑management, expenditure for these measures amounted to nearly EUR 2 billion.

Table 12.18. Italy’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	2.641 billion	Sectoral interventions (SI)	Budget (EUR)	3.214 billion
	Share of total CSP	7.2%		Share of total CSP	8.8%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The Food Sovereignty Fund was established to reduce reliance on imports by strengthening supply‑chain contracts in strategic sectors. Initially endowed with EUR 25 million per year and increased by EUR 10 million in 2025, the Fund finances measures for the expansion of arable land, increases in livestock numbers, and the protection of native breeds.

• A significant share of support is channelled through the National Recovery and Resilience Plan: in 2025, EUR 8.9 billion was allocated to interventions managed by the Ministry of Agriculture, Food Sovereignty and Forests, including EUR 2.4 billion for Agrisolar Park investments and EUR 1.4 billion for Supply Chain Contracts.

• Italy strengthened several sector-specific disaster‑related support measures, including additional funding for the pig sector, kiwifruit disease control, and compensation for losses linked to Xylella, Bluetongue and African Swine Fever.

• The 2026 Budget Law introduced a regulatory framework for seasonal work and a dedicated tax regime for occasional fixed‑term employment to help address labour shortages.

Latvia

CAP Strategic Plans (CSP): Implementation in 2025-26

• Amendments were made to nine rural development measures which reduced requirements for receiving support, increased aid rates, or broadened the scope of support.

• All 24 direct payment interventions and all 7 apiculture interventions were fully implemented in 2025, while 9 new rural development interventions were launched, bringing the total to 27.

• Several eco-schemes recorded higher-than-planned uptake by farmers, including support for environmentally and climate-friendly farm practices (918 000 ha, 206% of the target), and support for practices that reduce nitrogen and ammonia emissions and pollution (469 000 ha, 195% of the target). However, uptake was lower than expected for some eco-schemes, such as the new eco‑scheme aimed at creating or preserving landscape elements (51 000 ha, 49% of the target).

Table 12.19. Latvia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	257.0 million	Sectoral interventions (SI)	Budget (EUR)	10.1 million
	Share of total CSP	10.3%		Share of total CSP	0.4%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Latvia continued efforts to reduce the administrative burden of farmers through actions including digitalising documents and monitoring and control processes, as well as simplifying data entry and document submissions. A risk-based approach was adopted for agricultural inspections such as for animal health. Amendments were made to a considerable number of Cabinet regulations and regulatory frameworks which reduce administrative burden.

• Latvia developed and approved an Action Plan for improving school catering systems for 2025‑2027 which targets improving the procurement systems, setting quality criteria, strengthening local sourcing of products, linking educational content to sustainability and nutrition, setting nutritional standards and promoting student meals.

• Prolonged rainfall in Latvia caused flooding of crops and plantations in many areas, drastically reducing both yield and quality. Nine projects were carried out to improve flood prevention by restoring water flow in 53 km of national watercourses and 10 km of drainage systems.

Lithuania

CAP Strategic Plans (CSP): Implementation in 2025-26

• Lithuania amended its CAP Strategic Plan in 2025 and submitted further amendments in early 2026. Changes focused on simplification and flexibility: reduced control and penalty requirements for very small farms, adjustments to GAEC standards and relevant eco-schemes, simplified cost options, additional national financing, and targeted budgetary reallocations. Further proposed amendments target short supply chains, catch crops, and farm investment interventions.

• Eco-scheme uptake strengthened in 2025, particularly for organic farming and key land management practices. Participation in productive arable-land eco-schemes remained strong, while uptake of certified seeds declined.

Table 12.20. Lithuania’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	451.8 million	Sectoral interventions (SI)	Budget (EUR)	11.1 million
	Share of total CSP	10.7%		Share of total CSP	0.3%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In 2025, agriculture and food policy were recognised as strategically important for national security. Amendments to the Law on the Basics of National Security will strengthen the framework for ensuring food security and continuity of production in times of crisis.

• In 2025-2026, Lithuania strengthened drainage policy through higher public funding and a new governance approach. In 2026, national funding for state-owned drainage infrastructure increased by EUR 15 million. Lithuania also moved towards basin-based management to improve system-wide planning, clarify responsibilities, and strengthen resilience to excess moisture and flooding.

• In 2025-2026, Lithuania advanced digitalisation in livestock administration. New tools included an electronic animal consignment note, digital vaccination records and easier farmer access to the livestock register, reducing administrative burden and improving data management.

• From 2026, Lithuania introduced separate personal income tax treatment for farmers. Income from agricultural activity became subject to lower progressivity than general personal income, reflecting income volatility and sector-specific risks.

Luxembourg

CAP Strategic Plans (CSP): Implementation in 2025-26

• Luxembourg’s scheme supporting the use of synthetic pheromone diffusers in viticulture is no longer financed through EU funds but through national aid, and the measure has been removed from the CSP from 2025. Moreover, following the annulment of the glyphosate ban in 2023, the CSP has been adjusted to revert to a voluntary renunciation scheme in the form of a premium.

• The overall uptake of eco-schemes exceeded the allocated budget, with the shortfall covered through national state aid. The only exception concerns eco-schemes for non-productive areas, whose uptake remains significantly below target.

Table 12.21. Luxembourg’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	19.4 million	Sectoral interventions (SI)	Budget (EUR)	0.393 million
	Share of total CSP	4.2%		Share of total CSP	0.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The updated National Action Plan for Organic Farming for the 2026-2030 period (PAN-Bio 2023), published in December 2025, sets a target of increasing certified organic agricultural land by percentage point annually, reaching around 15% by 2030 (from 9.6% in 2024). It focuses on supporting conversion to and maintenance of organic production, strengthening value chains and market opportunities, promoting consumption, and improving governance.

• The adoption in June 2025 of a law supporting the construction of horticultural greenhouses aims to increase Luxembourg’s low level of self-sufficiency in fruit and vegetable production, with a EUR 20 million call for projects launched in September inviting farmers to apply.

• In 2025, the Luxembourg Veterinary and Food Administration (ALVA) adopted a preventive approach through reinforced surveillance and voluntary vaccination campaigns to protect livestock against several diseases, including epizootic haemorrhagic disease, bluetongue, lumpy skin disease and avian influenza.

• In April 2026, an action plan for generational renewal in farming was released in co‑operation with the Chamber of Agriculture and the young farmers’ organizations, outlining seven strategic measures to enhance the sector’s attractiveness and support farm takeovers by young farmers.

Malta

CAP Strategic Plans (CSP): Implementation in 2025-26

• Several amendments to the budgets of specific programmes were made while maintaining the overall budget for Pillars 1 and 2 constant. A planned financial instrument intended to support land acquisition by young farmers was scrapped due to viability concerns, and its resources were reallocated to a financial and technical assistance scheme for young farmers. More resources were also channelled into the implementation of parcel-level soil management and conservation plans in response to high demand, while further resources became available through reductions in schemes focused on off-farm investments and organic farming.

• Implementation has been uneven across schemes, and uptake of several eco-schemes, such as those for biodegradable mulch and biodiversity, has been limited, partly due to farmers favouring production-oriented schemes and because of high land competition and fragmented holdings.

Table 12.22. Malta’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	15.0 million	Sectoral interventions (SI)	Budget (EUR)	0.141 million
	Share of total CSP	9.3%		Share of total CSP	0.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The Protection of Agricultural Land Regulations aim to preserve agricultural land and impose certain obligations on farmers. These include compulsory land registration, minimum levels of agricultural activity, and limits on non-agricultural use. Fines are foreseen in the event of non‑compliance, along with a mechanism to reallocate unregistered land or place it under government stewardship.

• Two additional schemes aimed at improving access to and use of agricultural land were launched in 2025. The first, a pilot scheme, foresees the lease of government-owned vacant agricultural land to young farmers and new entrants for a 10-year period. The second scheme incentivises the temporary transfer of agricultural land from owners to either young farmers or a government agency, to ensure that the land remains in productive use.

• The Food Safety and Security Authority was established in 2025 to strengthen food safety and oversee both food safety and supply chain security.

Netherlands

CAP Strategic Plans (CSP): Implementation in 2025-26

• CAP regulations were simplified in 2025 in line with recent EU initiatives. The application process has also been streamlined, making annual reporting less burdensome for farmers.

• Support for young farmers was offered through the EIP generational renewal scheme and opened to applicants for the first time in 2025, promoting generational renewal and sustainable farm transitions within the CAP framework.

• Application numbers remained stable. Direct payment interventions continued their expected slight decline, while participation in eco-schemes remained high and consistent with previous years.

Table 12.23. Netherlands’ CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	0	Sectoral interventions (SI)	Budget (EUR)	634.7 million
	Share of total CSP	0.0%		Share of total CSP	12.7%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In April 2025, the Netherlands introduced an integral package to unlock operations in agriculture, industry and mobility, whose agricultural component focuses primarily on reducing nitrogen pollution and ammonia-emissions. The Starter Package includes immediate measures, such as farming extensification (EUR 627 million), manure management (EUR 250 million), voluntary farm exit schemes (EUR 750 million), target-based approach at farm level (EUR 200 million) and nature development (EUR 100 million). It also allocates EUR 600 million for the regions of Veluwe and de Peel along with EUR 473 million for various support measures such as technical interventions (e.g. Aerius replacements and animal welfare improvements) and policy support (e.g. food education and policy). The Follow up Package covers additional measures, including innovation (EUR 442 million) and support to other economic regions (EUR 242 million), among others.

• To increase the sales of organic agricultural products the Netherlands started a new subsidy scheme in February 2026 called “Vabiola” with a budget of EUR 3.7 million.

Poland

CAP Strategic Plans (CSP): Implementation in 2025-26

• The Act of 21 February 2025 amended Poland’s CSP by introducing social conditionality and new interventions, including an eco-scheme for “elite or certified category seed material” and two fruit-and-vegetable sectoral interventions for advice and knowledge exchange. It also enabled the use of agrochemical soil-testing databases for CAP evaluations and established mechanisms to recover penalties. Adjustments and simplifications were made to active eco-schemes and other instruments, including modifications to payment limits, crop-group rates, and land-eligibility rules.

• Demand for most area-based eco-schemes exceeded the budget, resulting in lower payment rates. Between mid-2024 and end-2025, 1 029 guarantees worth EUR 166 million were issued under financial instruments, securing EUR 223 million in loans (27.2% of programmed funds).

Table 12.24. Poland’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	2.599 billion	Sectoral interventions (SI)	Budget (EUR)	129.1 million
	Share of total CSP	10.3%		Share of total CSP	0.5%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. “Others” category covers hops (0.17%), flax (0.11%), hemp (0.02%). F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In 2025, Poland implemented a broad set of natural disaster relief instruments for farmers, including direct financial aid, reimbursement of the third and fourth instalments of the 2024 agricultural tax, preferential loans, and family support. Nearly totalling EUR 180 million, these measures aimed to address damages caused by droughts, extreme rainfall, frost, hail, and storms in 2024 and 2025.

• Under EU emergency support, Polish farmers whose orchards, fruit bushes, or strawberries were severely damaged by frosts in April-May 2025 received EUR 14.8 million, complemented by EUR 29.6 million from the national budget. Similarly, poultry, hatching and table egg, and meat producers affected by avian flue outbreaks between 2021 and 2023 were granted EUR 14 million from the EU agricultural reserve, matched by national funds of the same amount.

• The Council of Ministers adopted in 2025 the National Development Concept 2050, outlining the country’s social, economic, and spatial challenges for the next 30 years. It will guide the medium-term strategy to 2035, with “Strengthening Food Security” as a key priority.

Portugal

CAP Strategic Plans (CSP): Implementation in 2025-26

• In 2025, Portugal carried out a reprogramming of its CSP that increased basic income support from about EUR 82 per ha to EUR 126 per ha for the 2025 claim year and doubled support for young farmers. It also earmarked EUR 50 million for financial instruments, and introduced greater flexibility for direct payments, including higher coupled support for maize and more flexible eligibility rules for rice. These adjustments reflect efforts to strengthen farm incomes and improve the overall implementation of the plan.

• Portugal also amended the national implementing rules for the wine sector intervention on promotion and communication in third-country markets. The amendment clarified budget management rules and adjusted procedures for modifying approved applications.

• Implementation of the CSP progressed through the 2025 Pedido Único application campaign, whose deadline was extended to facilitate participation. New instruments were also activated, notably a risk management regime providing grants covering up to 100% of small losses and up to 80% of losses for insured farms to restore production after natural disasters, highlighting increasing attention to farm resilience.

Table 12.25. Portugal’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	690.6 million	Sectoral interventions (SI)	Budget (EUR)	331.1 million
	Share of total CSP	9.6%		Share of total CSP	4.6%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Portugal expanded agricultural financing instruments to unlock liquidity and investment, extending and reinforcing the Agri Portugal credit line to mobilise up to EUR 150 million in loans for agricultural investment, while creating a EUR 100 million bridge credit facility to help beneficiaries manage payment delays during the transition to 2023-27 CSP.

• Portugal advanced a domestic agricultural simplification package in April 2026, including a temporary regularisation regime for livestock farms, a new licensing framework for mobile slaughterhouses, an extension of phytosanitary applicator authorisations from 10 to 15 years, and updated rules for honey extraction and processing.

Romania

CAP Strategic Plans (CSP): Implementation in 2025-26

• Romania introduced a new eco-scheme supporting cattle welfare through extensive grazing practices, providing additional payments to farmers who adopt pasture-based systems that improve animal welfare and pasture management while contributing to environmental sustainability.

• Between December 2025 and February 2026, Romania accelerated the rollout of CSP investment interventions, launching funding calls to support farm modernisation and technological upgrading, including investments in agri-food processing, renewable energy, digitalisation and precision farming, horticulture, and support for young farmers.

Table 12.26. Romania’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	1.467 billion	Sectoral interventions (SI)	Budget (EUR)	182.1 million
	Share of total CSP	9.3%		Share of total CSP	1.1%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. “Others” category covers seeds (0.43%), hemp (0.08%), hops (0.05%), silkworms (0.01%). F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Romania adopted the National Strategy for the Promotion of Romanian Agri-food Products 2025‑2029, aimed at strengthening the visibility and competitiveness of Romanian agri-food products in domestic and export markets. It focuses on promoting quality, authenticity and culinary traditions, while supporting investment, higher value added and sustainable development across the agri-food sector.

• In July 2025, Romania approved a state aid scheme complementing CSP intervention DR-23 to support investments in the processing and marketing of agri-food products, aiming to strengthen domestic processing capacity and increase value added in the agri-food sector.

• In October 2025, Romania received EUR 15 million in emergency support from the EU agricultural reserve following severe spring frosts in April-May 2025, thus providing exceptional financial assistance to farmers affected by extreme weather events.

Slovakia

CAP Strategic Plans (CSP): Implementation in 2025-26

• The 2025 amendments to the CSP included the simplification of selected GAEC requirements, alongside minor adjustments to the whole-farm eco-scheme and grazing support, aimed at enhancing flexibility and better aligning with agronomic practices. Commitment conditions for certain interventions were revised, including limited pest-related exceptions for the use of plant protection products, while commitment periods for others were shortened to enable new calls in 2026 and broaden participation.

• By 2025, participation in the whole-farm eco-scheme reached 93% of eligible farmers, including the uptake of measures aimed at dividing large arable fields through the introduction of biostrips, which are intended to generate positive environmental impacts. Under coupled income support (CIS), at least 81% of the allocated budget was taken up across the eligible sectors.

Table 12.27. Slovakia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	308.9 million	Sectoral interventions (SI)	Budget (EUR)	76.2 million
	Share of total CSP	7.4%		Share of total CSP	1.8%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• The Slovak Republic implemented a combination of fiscal and regulatory measures aimed at mitigating inflationary pressures and influencing consumer behaviour towards healthier consumption patterns, including the reclassification of selected food products across VAT categories. These measures comprise a reduction in the VAT on selected food products from 10% to 5%, alongside a broader adjustment of VAT rates on food products from 20% to 19%.

• In April 2025, a new Construction Act entered into force, establishing a single fully electronic permitting procedure and other streamlining mechanisms. These changes are expected to speed up rural development projects and reduce the administrative burden on farmers through digitalisation and more efficient approvals.

Slovenia

CAP Strategic Plans (CSP): Implementation in 2025-26

• In 2025, Slovenia paid out EUR 130 million in direct payments to more than 53 000 farms, alongside EUR 6 million for sectoral interventions and EUR 143 million for rural development measures. During the same period, twenty-six public tenders were launched to support new projects under development measures in areas such as farm digitalisation, sustainable agriculture, livestock welfare, co-operation, generational renewal and knowledge transfer and innovation.

• Two new measures were introduced in 2025, extending coupled income support to vegetables, and adding a new eco-scheme to preserve and enhance habitats for plants and animals in agricultural landscapes.

Table 12.28. Slovenia’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	98.6 million	Sectoral interventions (SI)	Budget (EUR)	26.3 million
	Share of total CSP	5.5%		Share of total CSP	1.5%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In 2025, Slovenia renewed its regulatory framework for agriculture and food systems, through the adoption of several laws – the Agriculture Act, the Food Act, Food and Feed Safety Act, the Animal Protection Act, and the Agricultural Land Act. The reforms aim to improve farmers’ incomes, strengthen rural development, and support farm succession, while simplifying rules. They also introduce an integrated farm‑to‑consumer approach to enhance quality and transparency across the agri‑food chain, alongside measures to protect agricultural land, boost self‑sufficiency, and promote sustainability. The updated framework aims to further accelerate the sector’s digital transformation through the modernisation of data systems.

• Slovenia’s AKIS system was legally defined in the 2025 Agriculture Act, establishing a more integrated approach to knowledge transfer and innovation, supported by new tools such as Knowledge Consortia, demonstration farms, or an upgraded national Knowledge Portal.

• In May 2025, EUR 6.8 million was mobilised from the European agricultural reserve and national funds to compensate farmers for losses to permanent crops caused by frost episodes in April 2024. In addition, EUR 1.3 million was paid to sheep farmers at the end of 2025 to compensate for losses caused by bluetongue disease infection.

Spain

CAP Strategic Plans (CSP): Implementation in 2025-26

• The CSP was amended twice in 2025. The third amendment recognised certain agrivoltaic systems as eligible for CAP support (provided that agriculture remains the primary activity), relaxed some eco-scheme requirements, and adjusted financial allocations for the fruit, vegetables and wine sectoral interventions. The fourth amendment facilitated the transfer of outstanding transition commitments from the former Rural Development Programmes into the CSP.

• In the first year of applying social conditionality (2024), only 0.03% of beneficiaries were found non-compliant with the standards on working conditions and occupational health and safety.

• Uptake of the eco‑schemes rose again in 2025, reaching 88.1% of applicants (up from 87.8%). In contrast, applications for the complementary payment for young farmers fell by 5 000 in 2022-25.

Table 12.29. Spain’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	3.386 billion	Sectoral interventions (SI)	Budget (EUR)	1.712 billion
	Share of total CSP	9.8%		Share of total CSP	5.0%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• Extraordinary support was paid to producers in 2025 in response to drought, rising costs linked to the war in Ukraine, and damages caused by the October 2024 DANA storm. These payments were financed by the EU Agricultural Crisis Reserve and the state budget, totalling EUR 34 million and EUR 120 million respectively. In addition, extraordinary support was paid to producers affected by the wildfires of summer 2025,

• A new Food Loss and Waste Prevention Act was adopted in April 2025. It requires food chain operators to implement prevention plans. When surpluses cannot be avoided, the law mandates a hierarchy of uses, prioritising human consumption and with disposal as a last resort.

• In 2025, the ECOGAN digital monitoring system to track best available techniques and estimate farm-level GHG emissions was expanded to complete its planned coverage of species.

• The sustainable soil nutrition regulation was amended in October 2025 to make some deadlines more flexible, clarify exemptions, and improve regulatory co-ordination.

Sweden

CAP Strategic Plans (CSP): Implementation in 2025-26

• In 2025, the CSP underwent three amendments. These changes raised the EUR/SEK conversion rate for the rural development fund, and increased the overall budget by SEK 620 million (EUR 56 million). Higher payment levels were introduced in several support schemes, including the start-up aid for young farmers and environmentally targeted investments.

• The implementation in 2025 featured both expanded and newly introduced eco-schemes, most notably scaling up the precision-farming eco-scheme to nationwide coverage and introducing a biodiversity-focused eco-scheme for flowering fields and field margins. Participation in eco-schemes has been good, although the level of organic farming remains lower than expected. Around one-fifth of Swedish farmers applied for at least one eco-scheme in 2025.

• Grants equivalent to 60% of the budget set out in the strategic plan have already been approved.

• A new one-year environmental subsidy for ley farming was introduced during 2025, with applications opening in 2026.

Table 12.30. Sweden’s CSP planned budget targeting specific commodities and sectors

Coupled income support (CIS)	Budget (EUR)	646.1 million	Sectoral interventions (SI)	Budget (EUR)	31.7 million
	Share of total CSP	11.1%		Share of total CSP	0.5%

Note: Data refer to CSP 2023-27 planned budget, as available in the sources below, accessed in April 2026. Figures include EU funding, and in the case of apiculture, national co-financing. Estimated shares are calculated by the OECD. F&V refers to fruit and vegetables.

Source: At a glance CAP Strategic Plan and national CAP Strategic Plan, accessible from the European Commission’s website (EC, 2026[3]).

Other key policy developments in 2025-26

• In 2025, construction began on a national reference laboratory for plant pest diagnostics. The laboratory will serve as a knowledge centre for diagnosing plant pathogens and harmful insects, strengthening Sweden’s capacity to detect and contain outbreaks that threaten plant health.

• In the 2026 budget bill, the government decided in 2025 to reduce the VAT rate on food from 12% to 6%. It also indicated that it would monitor price developments to ensure that the VAT cut is passed on to consumers rather than absorbed through higher retail prices.

• A new national investment aid, Kväveklivet (“The Climate Leap”), became operational in 2025 to support on-farm investments that reduce ammonia emissions from agriculture and improve nitrogen-use efficiency.

Policy context

Key economic and agricultural statistics

The European Union is the largest economic region covered in this report, accounting for 17% of the economic activity of all countries covered herein. Although the contribution of agriculture to both GDP and employment has declined since 2000, the share of agriculture in the region’s exports has increased over the same period to 9% of total exports (Table 12.31). More than 40% of the region’s landmass is dedicated to agriculture, of which 60% is dedicated to arable land use. Crops (including cereals, oilseeds, fresh fruit and vegetables, and plants and flowers) predominate in agricultural output, accounting for 55.2% of total production, although large differences exist across Member States. Livestock products – including dairy, beef and veal, pig meat, sheep meat, poultry and eggs – account for the remainder.

Table 12.31. European Union: Contextual indicators

	European Union		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	9 951	28 696	24.43%	17.01%
Population (million)	377.6	449.3	8.62%	8.21%
Land area (thousand km2)	3 115	3 988	3.71%	4.70%
Agricultural area (AA) (thousand ha)	132 277	159 985	4.38%	5.41%
			All countries1
Population density (inhabitants/km2)	114	107	52	64
GDP per capita (USD in PPPs)	26 361	63 624	9 508	31 740
Trade as % of GDP	10.8	14.5	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	2.0	1.6	3.0	3.6
Agriculture share in employment (%)	4.3	3.3	-	-
Agro-food exports (% of total exports)	7.1	9.0	6.4	8.3
Agro-food imports (% of total imports)	7.4	6.6	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	54.4	55.2	62.1	60.4
Livestock in total agricultural production (%)	45.6	44.8	37.9	39.6
Share of arable land in AA (%)	55.7	60.4	33.0	34.0

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

After a strong rebound in 2021, real GDP growth in the region remained positive but steadily declined, approaching near stagnation by 2023. This was followed by a slight recovery in 2024, with growth reaching 1% (Figure 12.5). The unemployment rate has been on a steady decline since 2013, falling from a high of 11.6% that year to 5.9% in 2024. A sharp rise in inflation, driven by increases in energy, food, and other commodity prices, hit the European Union economy in 2021-22. Inflation peaked at 9.2% in 2022, but has since returned to more moderate levels, declining to 2.5% in 2025.

The European Union has been the world’s largest agro-food exporter since 2013 and, was also the world’s largest importer in 2025. The region is a net food exporter, with agri-food products exports rising to EUR 243.4 billion in 2024 (Figure 12.6A). The United Kingdom accounted for 23% of EU exports, while the United States and China ranked second and third. Imports in agri-food products also reached a record level of EUR 192.9 billion in 2024 (EC, 2025[30]). While the region’s agri-food exports are predominantly composed of processed goods for final consumption (62%), imports are more evenly distributed among the four categories shown in Figure 12.6B, with primary goods for industry representing the largest share (28%).

The European Union’s overall agri-food trade is broadly diversified across numerous trade partners, with a trend toward greater diversification since 2012. At the same time, for certain products – such as pig meat, poultry, eggs, vegetables and tobacco products on the export side, and fruits and nuts, vegetable oils, and processed fruits and vegetables on the import side – the European Union still relies heavily on key partners, which poses a risk of market instability if trade is disrupted (EC, 2023[31]; EC, 2026[32]).

There has been significant growth in the value of trade under the EU’s trade agreements, which in 2022 surpassed EUR 2 trillion for the first time. In February 2024, the Joint Research Centre (JRC) published a study entitled “Cumulative economic impact of upcoming trade agreements on EU agriculture - 2024 update”, which quantifies the effects of trade agreements recently concluded or in negotiation on key EU agricultural commodities. Comparing conservative and ambitious trade liberalisation scenarios with a baseline for 2032, the study projects an EU agro-food export growth of 27% to 38%. Despite potential negative impacts on beef, wine, processed food, dairy, and sheep meat, the overall benefits of the agreements are expected to surpass these losses, highlighting the need for diversified export markets and import sources (JRC, 2024[33]).

Over the period 2014-23, the European Union recorded a slightly negative average annual growth rate of agricultural output (-0.17%) compared with a positive word average of 1.81% (Figure 12.7).Total factor productivity (TFP) growth – averaging 1.02% over the same period – exceeded the global average but was not sufficient to offset the decline in the use of primary factor inputs, including labour, land, livestock, and machinery (which fell by an annual average of 0.74%), as well as the reduction in intermediate inputs such as feed and fertiliser (down by -0.45% on average).

Moderate TFP growth has been achieved in the sector along with a reduction of certain environmental pressures, as illustrated through various environmental indicators (Table 12.32). From 2000 to 2024, the region’s nitrogen balance fell by 43.5%, while the share of agriculture in water abstractions fell by 19.5 percentage points. While the European Union’s nitrogen balance is 38.6% higher than the OECD average, the phosphorus balance is 69.6% lower. Overall, the region achieved improvements in most environmental indicators, but agriculture’s GHG emissions as a proportion of total European Union GHG emissions increased over the period, from 8.9% in 2000 to 11.8% in 2024.

Table 12.32. European Union: Productivity and environmental indicators

	European Union		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	1.3%	1.0%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	71.1	40.2	32.3	29.0
Phosphorus balance, kg/ha	7.5	0.7	3.3	2.3
Agriculture share of total energy use (%)	2.0	2.8	1.7	2.0
Agriculture share of GHG emissions (%)	8.9	11.8	8.7	10.3
Share of irrigated land in AA (%)	..	..	-	-
Share of agriculture in water abstractions (%)1	43.6	24.1	46.1	47.7
Water stress indicator	..	..	..	..

Note: * or closest available year. EU27 for TFP annual growth rate:1993-2002.

1. Due to the data availability, the EU15 aggregate does not include Austria, Germany, Ireland, Italy and the United Kingdom; while the EU27 aggregate does not include Austria, Finland, Hungary, Ireland, Italy and Portugal.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

The Common Agricultural Policy (CAP) has been the European Union’s agricultural policy framework since its institution in 1962, although the mix of policy instruments has evolved substantially over time. The Treaty of Rome that established in 1957 the European Economic Community defined common policies on agriculture and trade (OECD, 2011[34]; European Parliament, 2021[35]). Agriculture made up a much larger share of Europe’s economy at the time, and the income gap between urban and rural households was increasing. Moreover, the region was a net food importer with concerns about securing adequate food supplies during the Cold War (Grant, 2020[36]). In this context, the Treaty of Rome laid down five main objectives for the CAP:

1. To increase agricultural productivity by promoting technical progress and ensuring the optimum use of the factors of production, in particular labour.

2. To ensure a fair standard of living for farmers.

3. To stabilise markets.

4. To assure the availability of supplies.

5. To ensure reasonable prices for consumers.

CAP measures targeting these objectives were financed from the European Agricultural Guidance and Guarantee Fund (EAGGF), split into separate Guidance and Guarantee sections. Different rules governed the two: the Guidance section financed operations related to structural policy and development of rural areas, while the Guarantee section funded expenditures on market and price policies (European Parliament, 2021[37]).

For more than three decades until the 1990s, support prices under the CAP were high compared to world market prices, with an unlimited buying guarantee. As a result, European farmers produced increasing surpluses and the cost of managing stocks and subsidising exports grew accordingly. In response, by the 1980s the European Union introduced quantitative production restrictions in the form of quotas on milk production.

The CAP’s first major reform occurred in 1992, in conjunction with negotiations on the General Agreement on Tariffs and Trade (GATT) and following the result from the US-EU soya GATT panel. The MacSharry Reform brought a major shift in the delivery of the CAP. Instead of supporting production (through market intervention and export subsidies), the regime shifted the bulk of support to supporting producer incomes directly through area and headage payments, aiming to close the gap between supply and demand and reduce overall expenditures (European Parliament, 2021[38]). This wide-ranging reform reduced cereal intervention prices, introduced compensatory payments per hectare for cereals or per head for livestock, and introduced a mandatory set-aside scheme to take land out of production. In conjunction with the reform of budgetary support measures through the MacSharry package, market price support (MPS) also declined thanks to EU commitments under the 1995 Uruguay Round Agreement on Agriculture. Namely, bound tariffs were gradually reduced, and variable import levies were replaced with ad valorem or specific tariffs and tariff rate quotas (OECD, 2011[34]).

Subsequent reforms built on the foundation of the MacSharry Reform, reducing distortive support to the agricultural sector or changing how support is delivered. The Agenda 2000 reform focused on aligning EU and world prices, offsetting the reduction of price support with increased direct aid to producers under the now called Pillar 1 (European Parliament, 2021[38]). In addition, the Rural Development Regulation was introduced as Pillar 2 of the CAP. Finally, this package instituted two types of environmental cross-compliance conditions: an optional measure linked to the direct payment in Pillar 1, and the so-called “Good Farming Practice” requirements for the agri-environmental schemes in Pillar 2.

The 2003 Fischler Reform6 further developed and consolidated these measures, decoupling most support from production through the introduction of the single payment scheme (SPS) (European Parliament, 2021[38]). Furthermore, in this reform cross-compliance became obligatory and was extended to include not only environmental issues but also public, animal and plant health and animal welfare issues. Cross-compliance rules were enforced through a set of Statutory Management Requirements (SMR) and “Minimum Requirements for Good Agricultural and Environmental Condition” (GAEC). This package also introduced modulation, allowing Member States to transfer funds between the two pillars to reinforce rural development objectives. The reform also prioritised financial discipline, freezing the budget of Pillar 1 (covering the SPS and market measures) and imposing annual compulsory ceilings. This coincided with the splitting of the CAP budget into the European Agricultural Guarantee Fund (EAGF) to finance Pillar 1 and the European Agricultural Fund for Rural Development (EAFRD) to finance Pillar 2 from 2007. Additionally, this round of reform introduced the single common market organisation (CMO) in 2007, which codified the regulation mechanisms of the existing CMOs. Reform programmes for specific commodities (cotton, hops, olive oil, tobacco, sugar, fruits and vegetables, and wine) were introduced from 2003 to 2008, with the aim of reducing distortive payments, restoring market-based incentives and aligning them with the SPS (OECD, 2011[34]). Through the different rounds of CAP reform, as result of budgetary payments replacing MPS, but also as result of the additional Member States joining the European Union, the absolute budget figure for the CAP more than doubled from 1990 to 2010.

Measures taken under the 2009 Health Check sought to continue the direction of the 2003 reform. Namely, decoupling of aid continued and nearly all payments (with the exception of suckler cow, sheep and goat premia) were included into the decoupled direct payments scheme – SPS. It also further reduced market intervention for a number of products, abolished set-aside and introduced phase-out of milk quotas. Additional flexibility for direct payments was introduced as well (OECD, 2011[34]). The Health Check also resulted in changes to both SMR and GAEC of cross-compliance, with the addition of two water management standards.

The 2013 Reform set out a more global, integrated approach to agricultural support for the programming period 2014-20, undertaken through four lines of action (European Parliament, 2021[38]): (1) converting decoupled aid into a multifunctional support system with aid directed toward specific objectives; (2) consolidating the two CAP pillars, with mostly decoupled direct aid and market measures funded through Pillar 1, and rural development funded through Pillar 2, which continued to be co-financed by the Member State; (3) consolidating CMO tools into safety nets in case of market disruption or price crisis, and ending other supply control measures, namely the sugar and milk quotas; (4) a more integrated, targeted and territorial approach to Pillar 2 through rural development plans, simplifying the range of available instruments to focus on certain core objectives.

During the negotiations of the CAP post-2020, a political agreement between the European Parliament and the EU Member States in the Council was reached on transitional rules for the CAP for 2021-22 on 27 November 2020. These transitional rules were based on the principle of continuity of the 2014-20 CAP rules, while also including new elements to ensure a smooth transition.

In January 2023, the European Commission and the European Union Member States began to implement the CAP 2023-27. Although with a similar annual budget as the transitional period, the new CAP entails a new delivery model, in which Member States play a critical role in designing and implementing their CAP Strategic Plans (CSPs), which include both Pillar 1 and Pillar 2 measures.

While CAP budget has remained relatively stable in nominal terms since 2010, CAP expenditures as a share of the total EU budget declined sharply, from 65.5% in 1981 to 24.6% in 2023. The share of CAP expenditure on the total EU budget was 34.9% in 2020. The stronger decrease since 2021 is linked to additional overall EU expenditure for the Next Generation EU funds (EC, 2024[39]).

Table 12.33. European Union: Agricultural policy trends

Years	Main Milestones	Key Policy Features
pre-1992	Coupled support phase: CAP financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), European Economic Community with 12 members1	Support prices greater than world prices Unlimited buying guarantee Production quotas for certain products, including dairy and sugar
1992-1999	MacSharry Reform: CAP, EU Expansion 1995 (Austria, Finland, Sweden), Uruguay Round Agreement on Agriculture	Shift from product support through prices to producer support through income-supporting measures, with the reduction in intervention prices compensated by increased direct aid per hectare or livestock headage payments Establishment of set-aside payments to encourage land retirement Tariffication of border measures and gradual reductions in bound tariffs
2000-2002	Agenda 2000 CAP Reform: CAP divided into Pillar 1 and Pillar 2 (Rural Development)	Further reduction of EU market support prices in closer alignment with world prices, partly offset by direct aid to producers in the form of increased area or headage payments First introduction of environmental cross-compliance Introduction of Rural Development Regulation as a second pillar of the CAP
2003-2008	Fischler Reform: CAP Pillars 1 (financed by EAGF) and 2 (financed by the European Agricultural Fund for Rural Development EAFRD), EU Expansion 2004 (Malta, Cyprus, Estonia, Latvia, Lithuania, Poland, Czechia, the Slovak Republic, Slovenia, Hungary) and 2007 (Bulgaria and Romania)	Decoupling much of CAP support from volume of production, with fixed single farm payment (SPS) introduced based on historical references Cross-compliance for environmental and public health objectives compulsory for receiving full payments. Introduction of Statutory Management Requirements (SMR) and “Minimum Requirements for Good Agricultural and Environmental Condition” (GAEC) Single common market organisation (CMO) introduced Reform programmes initiated for cotton, hops, olive oil, tobacco, sugar, fruit and vegetable and wine regimes
2009-2013	Health Check: CAP Pillars 1 and 2	Further reduction of EU market intervention for certain products Phasing out of milk quotas initiated Abolition of set-aside Integration of nearly all payments into SPS New cross-compliance requirements introduced
2013-2020	2013 Reform: CAP Pillars 1 and 2, EU Expansion 2013 (Croatia) and Contraction 2020 (United Kingdom)	Decoupled aid converted to multifunctional support (including basic payment, greening payment, small farmer payment, etc.) Consolidation of two pillars of CAP, with direct payments and market measures under Pillar 1 Consolidation of CMO tools, abolition of supply control measures (including ending milk and sugar quota schemes) External and internal convergence, with payment envelopes gradually adjusted to move toward a uniform minimum per hectare payment
2021-2022	Transitional rules	Continuity of the 2014-2020 CAP rules, while also including new elements to ensure a smooth transition
2023-2027	CAP 2023-27 Introduction of new delivery model and CAP Strategic Plans	The new delivery model requires Member States to programme both CAP Pillar 1 and Pillar 2 expenditures within the context of their CAP Strategic Plans. Enhanced conditionality and eco-schemes were introduced.

1. When the Maastricht Treaty establishing the EU was signed in 1992, Belgium, Denmark, France, Germany, Ireland, Italy, Greece, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom were part of the Union.

Source: European Parliament (2021[38]) and OECD (2011[34]).

Total support to the agricultural sector as percentage of agricultural gross value-added in the European Union largely comes from budgetary allocations. Market price support declined significantly from 1986 through the 2000s but has remained mostly unchanged since around 2010. The most substantial change to PSE composition began in the mid-2000s after the Fischler reform decoupled most payments to farmers from production (Figure 12.8).

References

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Notes

← 1.  Farmers are expected to comply with rules relating to the environment, food safety, animal and plant health, animal welfare and to maintaining agricultural land in Good Agricultural and Environmental Condition (GAEC) as well as with statutory management requirements (SMRs), the later stemming in EU Directives and Regulations which apply to all farmers whether or not they receive support under the CAP.

← 2.  Denmark and Malta received a derogation relieving them of this requirement because they were able to demonstrate that their redistribution objectives were already achieved through other policy instruments.

← 3.  Measure 23 may be fully financed by the European Union, provided that the budget remains within the overall EAFRD 2014-22 allocations.

← 4.  The iTA has entered into provisional application on 1 May 2026, while the EMPA remains also subject to the broader EU ratification process, including approval by Member States.

← 5.  These agreements have been signed in May 2026.

← 6.  Also referred to as the June 2003 reform or the 2003 “Luxembourg” reform.