Authors: Merveille Ntabuhashe and Raquel Pastor (AEIDL)
A new direction for income support
The Common Agricultural Policy plays a central role in supporting farmers’ incomes across the European Union. Direct payments continue to be an important source of stability in a sector exposed to economic uncertainty and climate pressures. For the period 2028–2034, the European Commission is proposing a fairer and better targeted income support for farmers.
Almost 293.7 billion euro would remain dedicated to CAP income support interventions, regarding degressive area base income support, agri-environmental and climate actions, payment for small farmers or support for the setting-up of young farmers, support for risk management tools or specific interventions in certain sectors, among others. Furthermore, the stability and resilience of the farm operation reflects that a broader recognition of the farm is needed, as sustainability depends not only on production but also on managing economic risks and long-term viability.
A new approach: Degressive Area-Based Income Support
At the core of the proposal is the Degressive Area-Based Income Support (DABIS), a simpler and fairer scheme replacing several current CAP payment systems. It provides payments based on eligible hectares but introduces degressively. This gradually reduces payments for larger farms to promote a fairer distribution of support. A capping of payments at EUR 100 000 per farm per year will also apply.
Member States will have the flexibility to design supports according to farmers’ specificities and local needs and combine area-based payments with lump sums or top-ups. The system will prioritise those whose main livelihood is agriculture. By 2032, pensioners will no longer be eligible, allowing younger farmers to enter or expand in the sector.
Promoting competitiveness and sustainability
Beyond DABIS, the proposal allows Member States to use coupled income support and area-specific payments to assist farms in disadvantaged or mountainous areas and those with mixed crop–livestock operations, as well as offering financial incentives for farmers applying or transitioning to more sustainable farming practices. Altogether, the CAP 2028–2034 package aims to deliver a fairer, more competitive, sustainable and resilient European agriculture, that sustains farmers’ livelihoods while fostering generational renewal and rural vitality across the EU.
Fairer payments, adapted to real farming situations
One of the key changes proposed is a move towards a simpler income support system based on farm area, combined with limits on the highest payments. Support would gradually decrease for larger farms, ensuring a more balanced distribution of public funds and a stronger focus on active farmers whose main livelihood comes from agriculture. Member States would have the flexibility to adapt this support to their own agricultural structures. By targeting support more precisely, the future CAP aims to better reflect the real environmental, economic and social conditions faced by different types of farms.
Investing in the next generation
The future CAP places strong emphasis on the renewal of the farming population. Smaller farms would benefit from simpler support options, while young farmers would receive additional help to start or expand their activities. Greater attention is also given to supporting women in agriculture, recognising their role in farm management and rural communities. These measures aim to make farming more accessible and attractive to the next generation.
Better access to clear, practical information and enhanced use of digital tools is essential for farmers considering these opportunities. The proposal aims to strengthen the competitiveness, sustainability and resilience of EU agriculture, while ensuring a fairer system that supports farmers and contributes to wider environmental, social and economic objectives.
Supporting sustainability and resilience
Alongside income support, the proposed CAP framework continues to encourage more sustainable and resilient farming systems. Farms facing natural constraints, such as those in mountainous or disadvantaged areas, would remain eligible for targeted support. Incentives would also be available for farmers adopting more sustainable practices or managing mixed farming systems.
As policy objectives evolve, the ability to link sustainability goals with everyday farm decisions becomes increasingly important. Ensuring that farmers can balance environmental ambitions with economic performance and social well-being is central to their sustainability, making these trade-offs more visible and manageable at farm level.
In line with CODECS goals, this transition to a more sustainable CAP post 2027 cannot rely solely on rules or checks but also sustainable digitalisation. By developing digital ecosystem, the project contributes to policy evolution in three ways:
- Digital tools can automate the verification of environmental practices;
- Helping farmers and policymakers assess the real costs and co-benefits of adopting new practices;
- Improving digital readiness to ensure the project move towards a more technical, results-based CAP does not leave smaller farms behind but rather equips them with the tools to demonstrate their viability and stewardship.
CODECS aims to ensure that simplification for future CAP leads to smarter farming, not lower standards, making sustainability profitable and verifiable for the next generation of EU farmers.
