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CAP post 2027: Positions begin to take shape
Online since 03-07-2026
June marked an important step in negotiations on the Common Agricultural Policy (CAP) for the 2028 to 2034 programming period. Three significant developments have begun to define the positions of the European institutions and shape the debate that will ultimately lead to the next CAP. While none of these decisions is final, and negotiations between the European Parliament, the Council and the European Commission have yet to begin, the political direction is becoming clearer.
On 29 June, German MEP Norbert Lins presented his draft report to Parliament's Committee on Agriculture and Rural Development, setting out Parliament's initial negotiating position. He described the report as having "substantially amended" the European Commission's proposal. In line with Parliament's position on the next Multiannual Financial Framework, the report calls for a CAP budget of €433 billion for the 2028 to 2034 period, compared with the Commission's proposal of €290 billion. It also supports retaining the CAP's traditional two pillar structure, with the first pillar remaining fully financed by the EU and the second pillar continuing to rely on national co financing.
Beyond the budget, the draft report proposes several important policy changes. It replaces the Commission's proposed €100,000 payment cap with a ceiling of €500,000 per natural person and removes the proposed degressivity of direct payments. The report also rejects the Commission's proposal to exclude farmers above retirement age from CAP support from 2032 onwards, arguing instead for an incentive based approach. It proposes restoring dedicated funding for environmental and animal welfare measures, establishing a common European framework for farm stewardship requirements to avoid diverging national rules.
Earlier in the month, on 16 June, the Council reached a partial general approach on the future delivery architecture of the CAP through the new National and Regional Partnership Plans. Two aspects are particularly relevant for the agricultural machinery sector. The first concerns governance. Rather than creating a dedicated agricultural plan, the Council proposes that the CAP should remain a chapter within each Member State's wider National and Regional Partnership Plan. The second concerns financing. The Council has chosen to retain national co financing for environmental and production related measures instead of restoring a fully EU funded system. This is particularly relevant because many of the investment schemes farmers currently use to purchase machinery, precision farming technologies and environmental equipment are financed through these co funded programmes. The final financing rules will therefore directly influence the availability and predictability of investment support.
The Council's proposal also includes a transitional derogation for 2028, acknowledging the complexity of integrating CAP delivery into the new partnership plan framework within the proposed timeframe. Experience from the introduction of the current CAP delivery model in 2023 suggests that transition periods often create uncertainty, leading to delays in payments and postponed investment decisions while Member States finalise their national plans.
Taken together, these developments show that negotiations on the post 2027 CAP have entered their substantive phase. Significant differences remain between Parliament, the Council and the Commission on the overall budget, the balance between European and national financing, the design of direct payments and the degree of autonomy the CAP should retain within the wider EU budget architecture.
Beyond the budget, the draft report proposes several important policy changes. It replaces the Commission's proposed €100,000 payment cap with a ceiling of €500,000 per natural person and removes the proposed degressivity of direct payments. The report also rejects the Commission's proposal to exclude farmers above retirement age from CAP support from 2032 onwards, arguing instead for an incentive based approach. It proposes restoring dedicated funding for environmental and animal welfare measures, establishing a common European framework for farm stewardship requirements to avoid diverging national rules.
Earlier in the month, on 16 June, the Council reached a partial general approach on the future delivery architecture of the CAP through the new National and Regional Partnership Plans. Two aspects are particularly relevant for the agricultural machinery sector. The first concerns governance. Rather than creating a dedicated agricultural plan, the Council proposes that the CAP should remain a chapter within each Member State's wider National and Regional Partnership Plan. The second concerns financing. The Council has chosen to retain national co financing for environmental and production related measures instead of restoring a fully EU funded system. This is particularly relevant because many of the investment schemes farmers currently use to purchase machinery, precision farming technologies and environmental equipment are financed through these co funded programmes. The final financing rules will therefore directly influence the availability and predictability of investment support.
The Council's proposal also includes a transitional derogation for 2028, acknowledging the complexity of integrating CAP delivery into the new partnership plan framework within the proposed timeframe. Experience from the introduction of the current CAP delivery model in 2023 suggests that transition periods often create uncertainty, leading to delays in payments and postponed investment decisions while Member States finalise their national plans.
Taken together, these developments show that negotiations on the post 2027 CAP have entered their substantive phase. Significant differences remain between Parliament, the Council and the Commission on the overall budget, the balance between European and national financing, the design of direct payments and the degree of autonomy the CAP should retain within the wider EU budget architecture.