EU Farmers Face 22% Cut in Direct Support
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The European Union has put forward a new financial framework that proposes a 22% reduction in direct income support, marking a significant overhaul of the Common Agricultural Policy implemented since 1962.
Historic Transformation and Funding Structure
The draft 2028-2034 Common Agricultural Policy, prepared by the European Commission and partially negotiated by the Council, initiates one of the most comprehensive structural transformations of the system in place since 1962. According to European Commission data, the current budget for the 2023-2027 period stands at 542.9 billion euros. Of this, 291.1 billion euros were allocated to the EAGF Guarantee Fund, which includes direct payments and market measures, and 95.5 billion euros to the EAFRD Rural Development Fund. With the new reform process, the traditional two-pillar system is unified under a single roof, officially transitioning to a new architecture based on minimum guaranteed payments and sustainability.

Budget Cuts and Flexible Support
The Commission's proposal foresees a 22% reduction in direct agricultural payments. The official draft presented by the European Commission plans a minimum financial security of 300 billion euros for producers. Of this package, 293.7 billion euros constitute direct income support, while 6.3 billion euros are allocated to the Union's Safety Net, serving as a crisis reserve. The regulation is positioned within the National and Regional Co-financing Fund, reaching a total financial size of 865 billion euros. Member states will also be able to transfer additional resources to agricultural and rural area projects from a flexible fund of 453 billion euros, in line with established plans.

EU Agricultural Support and Fund Budgets Distribution
European Commission
- Current CAP Budget (2023-2027)
- 386.6 billion euros
- EAGF Guarantee Fund (2023-2027)
- 291.1 billion euros
- EAFRD Rural Development (2023-2027)
- 95.5 billion euros
- New Minimum Guarantee (2028-2034)
- 300 billion euros
- Direct Income Support (2028-2034)
- 293.7 billion euros
- Union Safety Net (2028-2034)
- 6.3 billion euros