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Further reflections on CAP governance and budget

This post has been revised to take account of the important role that the proposed ‘flexibility amount’ will play in influencing the scope that Member States will have to top up their minimum CAP ring-fenced amounts when preparing the CAP chapter of their National Plans. Its significance is such that it changes the tenor and conclusions of the original post. I am particularly grateful to Elsa Régnier for drawing this issue to my attention.

IDDRI, the Institut du développement durable et des relations internationals, has published a policy brief on the European Financial Framework 2028-2034: Key issues for the agricultural sector written by Elsa Régnier, Aurélie Catallo, and Pierre-Marie Aubert.… Read the rest

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Relevant data on CAP implementation no longer published

DG AGRI published its first status report on the implementation of country CAP Strategic Plans for the year 2023-2024 in June 2025. The report is based on the Annual Performance Reports that Member States must submit to the Commission by 15 February for the financial year ending the previous 15 October. Thus, this report draws on the Performance Reports submitted for the second year of the programming period ending October 2024. As area and animal-based payments paid in the financial year October 2023-October 2024 refer to claim year 2023, much of the data in practice refers to the first year of implementation of the new CAP.… Read the rest

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European Parliament votes on CAP simplification and strengthening farmers’ position in the food supply chain

The European Parliament voted today to determine its position on two amending pieces of legislation proposed by the Commission that can significantly modify rules for Member States and farmers in the remaining years of the current CAP. One is the Omnibus Simplification Regulation COM (2025) 236 amending the CAP Strategic Plans Regulation 2021/2115 and the Common Market Organisation (CMO) Regulation 1308/2013, while the other is the proposal COM (2024) 577 to amend the CMO Regulation and some aspects of the Strategic Plans Regulation to strengthen farmers’ position in the food supply chain.

The context for these two proposals is, firstly, the general shift in Commission priorities to boost competitiveness, innovation and growth in the wake of the Draghi report.… Read the rest

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The EU-Mercosur Partnership Agreement will have a minimal effect on the EU beef market and should be ratified

The European Commission finally put forward the EU-Mercosur Partnership Agreement concluded in December 2024 for ratification on 3 September 2025. The Commission adopted proposals for Council decisions on the signature and conclusion of two parallel legal instruments: the EU-Mercosur Partnership Agreement (EMPA) and the interim Trade Agreement (iTA). The iTA will be repealed and replaced by the EMPA once the latter is fully ratified and enters into force. 

Livestock farmers continue to protest and to mobilise against ratification of the Agreement, arguing that it will open the EU market to a flood of South American imports and decimate the EU beef sector. But for beef and poultry, the tariff concessions are limited to relatively small increases in tariff rate quotas.… Read the rest

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Strategic planning in the new CAP

The CAP Strategic Plans Regulation (EU) 2021/2115 established the governance and strategic planning framework for the Common Agricultural Policy (CAP) for the 2023–2027 period. It operationalised the “new delivery model”, granting Member States significant autonomy in designing and implementing CAP Strategic Plans, with the European Commission exercising oversight primarily through ex post performance clearance and conformity checks.

The Commission’s proposal COM(2025) 545 for a Budget Performance and Tracking Regulation (Performance Regulation) would replace 2021/2115 and embed the CAP within a horizontal EU-wide budgetary governance framework. This framework extends beyond agriculture, applying uniform rules for performance tracking, indicator use, data reporting, and transparency across all EU budget expenditure.… Read the rest

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How big will the CAP budget be in the next MFF?

The answer to this question is of course that we cannot know for certain at this stage. Under the Commission proposal the CAP will be merged into the proposed National and Regional Partnership Fund (NRPF) along with all other shared management funds where currently Member States receive pre-allocated amounts. Under the new arrangement, there would be only one pre-allocated envelope for Member States. There is a minimum ring-fenced amount for what is now referred to as CAP income support interventions (plus some fisheries support) of €295.7 billion. But the final amount allocated to CAP interventions will depend on how Member States allocate their NRPF resources in their NRP Plans.… Read the rest

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Climate and environment in the Commission’s CAP proposal

There has been considerable speculation since publication of the Commission’s proposals for the MFF and for the CAP 2028-2034 in July for what they might mean for climate and environmental ambition in the next programming cycle. The Commission’s Vision for Agriculture and Food Communication had underlined that the call in von der Leyen’s Political Guidelines for “a better balance between incentives, investments and regulation” should be interpreted as giving greater flexibility to farmers and shifting from conditions to incentives. To achieve the same level of climate and environmental ambition through a voluntary approach only using incentives implies the need for significant additional resources.… Read the rest

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Horizontal Principles in the Next MFF and Implications for the CAP

Merging the EU’s Common Agricultural Policy (CAP) into the single National and Regional Partnership (NRP) Fund raises more than just the fungibility of resources between the different priorities in that Fund (though this is largely neutralised for the CAP by ring-fencing a minimum amount for CAP income support and fisheries interventions, for further details see my post on this topic). The CAP is also subject to a new set of management regulations that will have important implications for the governance of the policy.

Elements of governance that are affected include the division of competences between the Commission and Member States under shared management, the preparation, approval and monitoring of the CAP chapter in the NRP Plans, performance monitoring, and the role of partnerships.… Read the rest

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Negotiating the Member State allocations in the next MFF

Negotiations on the EU’s Multi-annual Financial Framework (MFF) take place within the General Affairs Council of the European Union. Ultimately, the final decisions are taken by the European Council of Heads of State and Government and must also receive the consent of the European Parliament. There are many points of friction, including the overall size of the MFF, its allocation across headings, and the question of own resources and how to finance the budget. Traditionally, there is a specific focus on the pre-allocated amounts as these are a significant determinant of the net balance between receipts and contributions for individual Member States – often referred to as the focus on juste retour in the MFF negotiations.… Read the rest

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Changes proposed to the management of agricultural crises

The term of office of the previous Commissioner for Agriculture Janusz Wojciechowski 2019-2024 was dominated by crises, including the COVID pandemic, the impacts of the Russian invasion of Ukraine on energy and fertiliser prices, and the impacts of Ukrainian exports of grains and oilseeds on the markets of neighbouring countries. Following the announcement to launch a Strategic Dialogue on the Future of Agriculture in December 2023, it was thus not surprising that Wojciechowski speculated on the need for a common crisis intervention instrument in the future CAP with a reinforced budget, proposing that this should form a “third pillar” of the CAP.… Read the rest