One of the many debates around the Commission’s post-2027 CAP proposal revolves around its proposal for the better targeting of area-based payments. This debate has at least five dimensions:
- Article 6(2) of the draft CAP Regulation COM(2025) 560 requires that Member States differentiate these payments by groups of farmers or geographical areas, on the basis of objective and non-discriminatory criteria. The basis for the differentiation of payments shall be based on farmers’ income from agricultural activity in a representative reference period. Specifically, differentiated payments should focus on those most in need (with specific groups mentioned including young and new farmers, women farmers, small farmers, mixed enterprise farmers and those operating in less favoured areas).
- Article 6(3) requires Member States to apply degressivity to area-based payments between €20,000 and €100,000.
- Article 6(4) requires Member States to cap the amount of area-based payments any one beneficiary can receive at €100,000.
- Article 6(5) requires that Member States ensure that area-based payments are primarily directed towards farmers who exercise an agricultural activity and actively contribute to food security.