CAP funding rules 2023-2027
The reformed common agricultural policy for 2023-2027 aims to make farming in the EU fairer, greener and more results-driven.
Adapting to new challenges
Overall, the EU’s common agricultural policy aims to:
- provide affordable, safe and high-quality food
- ensure a stable income for farmers
- stabilise markets
- support rural areas
The policy has existed since the 1960s but is regularly reviewed and adapted in line with new challenges faced by the EU’s farming sector.
The common agricultural policy explained
Key objectives of the CAP 2023-2027
With the latest reform for 2023–2027, the EU aims to:
• provide greater flexibility in planning for member states
• distribute funds more fairly in order to support smaller farms and younger farmers more effectively
• contribute to the EU’s environmental and climate goals
• increase the competitiveness of the sector and prepare for crises
Flexible planning for member states
A new way of working gives countries more flexibility in allocating agricultural funds based on local conditions and needs.
Instead of requiring specific measures, the reformed CAP prioritises objectives. This gives EU member states the flexibility to assess their unique needs and choose from a range of instruments to meet these objectives.
These instruments must be outlined in national strategic plans. Each plan must be approved by the European Commission to ensure it does not distort the single market or lead to excessive burdens on farms or administrations.
Each year, EU member states must submit reports to track their progress towards meeting the EU-wide objectives. A common set of result indicators agreed at EU level ensures consistent and fair evaluation of the effectiveness of the measures used.
Fairer distribution of payments
Direct payments for farmers provide them with a stable income and a safety net against fluctuating prices. For the period 2023-2027 these payments should be distributed more fairly:
- 10% are to go to smaller and medium-sized farms
- 3% are to go to younger farmers
- payments are linked to social and labour conditions
Due to this redistribution, payments for other beneficiaries might be reduced or capped.
Greener farming practices
The new rules incentivise and require farmers to adopt climate-sensitive and nature-friendly practices, for example:
- farms who receive direct payments, must protect wetlands and peatlands to preserve carbon-rich soils
- farmers can receive additional support from eco-schemes to apply nature and climate friendly practices beyond their mandatory requirements. EU member states must spend 25% of direct payments for those eco-schemes
Greening agriculture
Increasing competitiveness and preparing for crises
The EU also wants to strengthen the position of farmers in the supply chain and boost competitiveness in the sector. The new rules for 2023-2027 encourage cooperation between producers and farms in order to align supply with demand.
Furthermore, a reserve of €450 million per year will ensure that the EU can cope with future crises resulting from animal diseases, market disturbances, extreme weather events, or high energy or input prices, for instance in the context of the Russian war of aggression. In 2022 and 2023, €1 billion was mobilised to help farmers cope with crisis situations.
Addressing farmers’ concerns
To respond to concerns raised by farmers, one year after the new CAP policy began, the EU introduced measures to reduce the administrative burden on farmers and offer more flexibility in meeting some CAP 2023-2027 requirements.
The amended rules allow for derogations in cases of unexpected weather conditions and for environmental requirements, including:
- soil cover practices
- crop rotation and diversification
- fallow land and landscape features
Small farms under 10 hectares, which make up 65% of CAP recipients but only cover 10% of the land, will not be checked or penalised if they do not comply with environmental rules, significantly reducing the administrative burden for many, while still upholding environmental commitments.
Additionally, EU countries can now amend their strategic plans twice a year, rather than just once.
These changes balance environmental and climate goals with farmers’ concerns, considering the impact of geopolitical developments, such as the consequences of the Russian invasion of Ukraine, and of extreme weather events.
Legal background
The CAP 2023-2027 is covered by the following regulations:
The EU's agricultural policy post-2027
In December 2024, the Council unanimously approved a set of conclusions on the future common agricultural policy. According to the conclusions, the agricultural policy of the future should be:
- competitive
- crisis-proof
- sustainable
- farmer-friendly
- knowledge-based
The conclusions point out the importance of the CAP in reaching these objectives, and underline the key goals of ensuring food security, while guaranteeing a fair standard of living for the agricultural community and reasonable prices for consumers.
At the May 2025 Agriculture and Fisheries Council, ministers held a debate on the communication on a vision for agriculture and food, published by the European Commission in February 2025. They agreed that enhancing the competitiveness and sustainability of agriculture and simplifying agricultural policies were crucial goals.
The vision focuses on four priority areas:
- making farming attractive for future generations
- ensuring a competitive and resilient agrifood sector
- future-proofing the agrifood sector
- providing fair living and working conditions in rural areas
The simplification of EU rules, research, innovation and digitalisation are among the main drivers identified to reach goals in these priority areas.
Feeding Europe: 60 years of common agricultural policy
Six decades after its launch in 1962, the EU's common agricultural policy supports an open single market for EU agricultural food products. Hear more about the CAP from European farmers and beneficiaries.
Last review: 26 May 2025