President Nikos Christodoulides has announced two new support schemes worth a combined €1.5 million for farmers, aimed at easing the burden of rising agricultural diesel and fertiliser costs.
Speaking at a dinner hosted by the Pancyprian Grain Producers Organisation in Aradippou on Monday evening, Christodoulides said strengthening the primary sector is a matter of national and food security, particularly for an island state such as Cyprus.
Food security and CAP funding
The President said recent crises, especially the consequences of the war in Ukraine, had highlighted the importance of maintaining a strong agricultural sector and safeguarding food security.
He also referred to ongoing negotiations in Brussels regarding the Common Agricultural Policy (CAP) and the EU's Multiannual Financial Framework, stressing that Cyprus opposes proposals to reduce CAP funding.
Christodoulides said the government's objectives are to:
- Strengthen the primary sector.
- Improve farmers' living standards.
- Encourage younger generations to enter agriculture.
Support measures announced
Addressing rising production costs, the President said a separate support plan will provide €1 million to eligible farmers to cover part of the cost of:
- Fertilisers.
- Plant protection products.
- Other agricultural inputs.
Additional support will also be provided specifically for grain producers.
He further announced that the Ministry of Agriculture is preparing two new support schemes, with a total value of €1.5 million, following European Commission approval of emergency funding linked to energy and fertiliser costs and the impact of the Middle East crisis.
The schemes are expected to be implemented and completed by February 2027 and will focus on:
- Rising costs of subsidised agricultural diesel.
- Higher fertiliser prices.
Millions already paid in support
Christodoulides noted that the wider grain sector has contributed approximately €9.5 million since 2019, while government support to the sector has totalled around €35 million.
He added that more than €25 million had been paid from the Agricultural Production Protection and Insurance Fund to compensate for drought conditions in 2024 and 2025.
A further €4.5 million was provided to support grain and fodder crop producers affected by the extreme dry conditions experienced in 2025.
The President also said the European Commission has approved €4.6 million in emergency support for sectors that suffered income losses above established thresholds, including grain production and livestock farming affected by higher feed costs.
Easier access to finance
Christodoulides said efforts are also being made to improve farmers' access to financing for investment projects.
He revealed that, following discussions with banks through the Association of Cyprus Banks, a cooperation framework has been approved by the Council of Ministers and two banking institutions have already submitted applications to participate.
The relevant agreements are expected to be signed soon, allowing new financing products tailored specifically to farmers to become available.
Looking beyond 2027
The President said the current CAP Strategic Plan 2023-2027 has a total budget of €454 million, with grain producers receiving the largest share of direct payments.
Direct payments to the sector in 2025 amounted to approximately €24.5 million.
He also announced that the Ministry of Agriculture will begin broad consultations this month on Cyprus's new CAP strategy for the period after 2027, with the aim of strengthening farm incomes and improving the resilience of the primary sector.
Grain reserves issue
Christodoulides acknowledged concerns regarding grain reserves this year and said he was seeking solutions.
He noted that he was travelling to Egypt and would later host the President of Israel in Cyprus, adding that Jordan may also present opportunities.
The President said he expects to receive updated information before moving forward with efforts to absorb the current grain production.
Concluding his remarks, he urged grain producers to continue guiding the government, saying they are best placed to identify the policies needed to strengthen Cyprus's agricultural sector.
Source: CNA.
