EU agriculture and rural development policy

December 2, 2025

Aerial view of pastures and farmlands in Brittany, France. Beautiful French countryside with green fields and meadows. Rural landscape on sunset — Image: © encrier | iStock

Open Access Government underscores the Common Agricultural Policy as a key example of European Union agriculture and rural development policy

The Directorate-General for Agriculture and Rural Development (DG AGRI) supports a sustainable, competitive agricultural sector and rural areas in the European Union (EU). It develops and evaluates the Common Agricultural Policy (CAP) to meet economic, environmental, and social goals, particularly food security. Key figures in DG AGRI’s leadership include Commissioner for Agriculture and Food, Christophe Hansen, and Director-General Elisabeth Werner. ⁽¹⁾

The CAP simplification package

The European Commission has welcomed the political agreement reached between the European Parliament and the Council on a CAP simplification package. This agreement aims to reduce administrative burdens, simplify payment schemes, and enhance farmers’ competitiveness. Key provisions include streamlined support for small and medium-sized farms, better recognition of organic farming practices, and increased flexibility for Member States in managing their CAP Strategic Plans.

The package retains essential elements of the Commission’s initial proposal. It will reduce the administrative burden on farmers and support small farmers through reinforced payments. Additionally, organic farms will benefit from simplified rules, and farmers affected by natural disasters will receive crisis payments. The reforms could save over €1.6 billion annually for farmers and more than €210 million for national administrations.

It is expected that the simplifications will be effective from 2026. The Commission also plans further measures to reduce reporting and control burdens, thereby facilitating the new flexibilities offered by the CAP simplification omnibus. Commissioner Hansen summed up some of what this initiative is all about:

“Simplifying our policy is one of my main priorities as Commissioner for Agriculture and Food. Farmers spend too much time on paperwork, which costs them valuable time and money. It was time to cut the red tape and let them focus on what they do best: producing our food. I want to thank the European Parliament and the Council Presidency for their work on the simplification package the Commission presented in May.” ⁽²⁾

The CAP 2028-2034 proposal examined

Direct payments to farmers account for an average of 19% of their income in the EU. The European Commission’s proposal for the 2028 CAP aims to provide a fairer system of income support through a National and Regional Partnership Fund of €865 billion, with at least €293.7 billion allocated directly to farmers. An additional €453 billion will support income innovation, measures and rural initiatives. A Unity Safety Net worth €6.3 billion will address market crises from 2028 to 2034.

Payments will be capped at €100,000 per farm annually. Member States can tailor support to local needs, combining area-based payments with top-ups or lump sums. The system prioritises those primarily engaged in agriculture, with pensioners ineligible by 2032 to facilitate entry for younger farmers. Smaller farms will have simplified access to support, including an optional annual payment of up to €3,000. ⁽³⁾

The future of EU agriculture and rural development policy

We wish DG AGRI success as they advance the CAP and strive to achieve its economic, environmental, and social goals. We eagerly anticipate the developments surrounding the CAP simplification package and the forthcoming proposals for the CAP spanning from 2028 to 2034, as these initiatives could shape the future of agricultural policy in helpful ways.