EU Farm Payments After 2027: Direct Payments to Be Replaced by Income Support

The European Union's draft Common Agricultural Policy (CAP) for the next period no longer uses the term "direct payments". Instead it speaks of payments to farmers and income support. Dr. Bogdan Pomianek of Poland's Ministry of Agriculture and Rural Development (MRiRW) outlined the planned changes at a webinar. All of the solutions are still drafts, and both rates and final rules will be settled by negotiations and the budget.

Basic payment gets a new name

The basic payment is to be converted into a degressive area-based support. According to Pomianek, the core structure of aid should stay close to the current one: income payments, production-linked support, aid for areas with natural constraints, and help for small farms. Keeping similar types of intervention does not mean the rates, budgets and rules will be the same.

The European Commission initially proposed directing the degressive area support to young and new farmers, women, family and small farms, and livestock producers. The final targeting is to be decided by member states. Poland is analysing which farms have greater income needs and is considering criteria such as farm size and mixed production, but nothing has been settled. The draft cites an average EU support range of €90–240 per hectare, which is not a rate announced for Polish farmers.

Degressivity and capping may be voluntary

The Council of the EU has proposed that degressivity and capping of payments be voluntary for member states. The level of any cuts is still under discussion. Pomianek noted that capping payments to the largest farms may bring Poland smaller savings than countries with more farms above 1,000 ha.

Production support, investment and young farmers

The draft would allow the share of production-linked support to rise to as much as 25%, with a further 5 percentage points possible for areas such as high-protein crops or mixed production. The ministry wants to keep investment support aimed at competitiveness and resilience: renewable energy, energy efficiency, biogas plants, biosecurity and animal welfare. Each member state would also prepare a generational renewal strategy addressing barriers for young people entering farming; support should go beyond bonuses and payments to include advice, education and innovation.

Resilience to drought, high temperatures and spring frosts is also a major theme.

Timeline

The draft CAP chapter was to go to consultation early next year, formal consultations are planned for March–May 2027, and negotiations with the European Commission from September 2027. The aim is to agree the document in 2027 and start the new period in 2028, though dates may change.