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On 12 June 2026, the European Commission proposed a €540 million support package and amendments to the Common Agricultural Policy (CAP) to address persistently high fertilizer prices stemming from Middle East supply disruptions. The aid will use €300 million from the 2026 agricultural reserve, with member states able to provide additional national support up to 200%, potentially reaching €1.5 billion. Eligible farmers can receive compensation for 50% of increased costs, or 80% if they implement fertilizer reduction measures. Payments will be distributed as flat-rate per hectare by June 2027. The plan also allows for increased direct payment advances and flexible CAP allocations for 2027. The proposal awaits review by the European Parliament and Council, with urgent approval of agricultural reserve mobilization expected by July 2026.
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On 11 June 2026, the Cypriot Presidency unveiled its draft Multiannual Financial Framework (MFF) for 2028–2034, proposing a €1.73 trillion commitment ceiling—a 2% reduction compared to the previous period. The framework introduces the National and Regional Partnership Plan (NRPP), with €770.366 billion earmarked, including a separate CAP chapter with at least €261.013 billion for income support. The proposal reserves 10% of national envelopes for rural areas, 43% for climate objectives, and allows mid-term flexibility to increase CAP funding. A €56.071 billion EU Facility is included for crisis response, featuring a €5.598 billion Safety Net for agriculture. Direct payments to farmers will range from €130 to €240 per hectare, with differentiated degressivity and an optional €100,000 payment cap. Separate funds are also set for competitiveness, agricultural innovation, and research. The plan will be debated in upcoming Council meetings.
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On 1 June 2026, the European Parliament’s Committee on Agriculture and Rural Development (COMAGRI) voiced concerns about the Commission’s proposed framework for monitoring EU budget expenditure and performance after 2027. The European Court of Auditors identified issues like missing links between funding and outcomes, a lack of relevant indicators, and shortcomings in performance verification. Many MEPs warned that the proposal places too much emphasis on environmental goals at the expense of food security, competitiveness, and support for farmers and young people. Members also argued that the new framework, along with the planned creation of a single fund, could increase administrative burdens and undermine the Common Agricultural Policy. COMAGRI will continue to debate its formal opinion before a vote scheduled for July 2026.
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Negotiations on the post-2027 Common Agricultural Policy (CAP) continue to focus on who is eligible for agricultural support. At a recent meeting of the Special Committee on Agriculture, most EU Member States opposed a proposal from the Cypriot Presidency, based on a European Commission draft, to tighten the definition of a farmer so that only those for whom agriculture is their primary activity would receive support. Member States prefer to keep the broader current definition, warning that changes could complicate talks on the Multiannual Financial Framework (MFF) and the future CAP. Parallel discussions are underway on establishing a specific definition for "active farmer," already used in current direct payment conditions. The Cypriot Presidency maintains that clearer definitions are needed to ensure support reaches those critical for food security. The next step will be negotiations at the ambassadorial level, with a partial agreement on a new national and regional CAP framework expected on 16 June 2026.
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On 27 May 2026, the European Commission authorised a €15 million French aid scheme to assist agricultural and aquaculture firms affected by surging untaxed diesel prices. Designed as direct grants tied to diesel purchases in April 2026, it covers up to 70% of increased costs due to the Middle East crisis and runs through the end of 2026. The same day, the Commission also approved a €500 million Spanish aid programme offering direct payments per hectare to offset higher fertiliser prices, with a maximum size of 300 hectares per beneficiary, also running until 31 December 2026. Both schemes target up to 70% of increased input costs linked to the crisis. Separately, on 18 May 2026, Lithuania received approval for a €100 million programme for soft loans to strengthen agricultural investment, improve soil quality, and enhance climate resilience, valid until end 2028.