EU Proposes CAP Reform to Favor Small Farmers
The EU is set to propose capping subsidies a single farmer can receive annually, aiming to redistribute funds towards smaller farms. The draft suggests a cap of 100,000 euros per year and reducing payments above specific thresholds. The proposal is part of the EU's upcoming budget for 2028-2034.
The European Commission is preparing to unveil a significant reform to the Common Agricultural Policy (CAP), aiming to cap subsidies for individual farmers at 100,000 euros annually. This move seeks to address the disproportionate distribution of funds and prioritize support for smaller agricultural enterprises.
The draft proposal, set for publication on Wednesday, outlines a tiered reduction approach. It suggests that farmers receiving over 20,000 euros annually will face a 25% cut on additional funds, while those exceeding 50,000 euros and 75,000 euros will see reductions of 50% and 75% respectively.
This reform attempt follows previous efforts blocked by EU governments due to concerns over farming industries. Approval from EU countries and the European Parliament is required for the budget covering 2028-2034. The proposal also emphasizes eco-friendly targets and local conditions for subsidy eligibility.
(With inputs from agencies.)
Google News