Von der Leyen Reassures Farmers on CAP Funding Ahead of Next EU Budget Cycle

Letter to Christodoulides and Metsola outlines ringfenced funding, early liquidity and crisis tools as Brussels moves towards the 2028–2034 framework and the EU–Mercosur deal

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The future of the EU’s Common Agricultural Policy is set out in a letter sent by Ursula von der Leyen to Nikos Christodoulides, in his capacity as President-in-Office of the Council of the EU, and Roberta Metsola.

The message from Brussels is clear. The Common Agricultural Policy will remain a core pillar of EU policy in the next Multiannual Financial Framework for 2028–2034, backed by a protected budget that cannot be reduced or redirected.

A ringfenced CAP budget

In her letter, von der Leyen stresses that the CAP will continue to serve as the EU’s primary tool to secure farmers’ incomes, safeguard long-term food security and improve living standards in rural areas.

Despite the policy being embedded in the upcoming National and Regional Partnership Plans, farmers will benefit from a ringfenced allocation of €293.7 billion. The Commission president underlines that this funding will remain protected throughout the next budget cycle.

Early liquidity for farmers

To address cash-flow pressures at the start of the new programming period, von der Leyen proposes early access to mid-term review resources.

Member states, she explains, will be able to draw on up to two thirds of the amount usually released at the mid-term review stage. This would make around €45 billion immediately available to support farmers from the outset of the 2028–2034 framework.

Stronger crisis management tools

The ringfenced CAP funding will be complemented by reinforced crisis-response mechanisms. According to the letter, these measures will sit alongside a doubled €6.3 billion reserve aimed at stabilising agricultural markets in times of disruption, known as the Unity Safety Net.

In addition, farmers will be able to receive crisis payments through the 10% flexibility margin built into the National and Regional Partnership Plans, particularly in cases of natural disasters, extreme climatic events or animal disease outbreaks.

Focus on rural areas

Rural development features prominently in the Commission’s plans. At least 10% of the resources in each National and Regional Partnership Plan will be earmarked for investments in rural territories.

This translates into €48.7 billion dedicated to rural areas, with the potential to increase to €63.7 billion through financing instruments under Catalyst Europe loans.

Political timing and wider context

Von der Leyen concludes that the combined use of policy tools and financial instruments will offer farmers and rural communities an unprecedented level of support, in some respects exceeding that of the current budget period. She also commits the Commission to continued cooperation with the European Parliament and the Council until the new Multiannual Financial Framework is formally adopted.

The timing of the letter is notable. It coincides with an informal meeting of EU agriculture ministers at the Commission’s headquarters in Brussels, held against the backdrop of the planned signing of the EU–Mercosur agreement on 12 January in Paraguay. EU ambassadors are expected to give their approval by Friday, clearing the way for von der Leyen to travel for the signing.

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