The new CAP proposal features a reduction in funding to €300 billion for 2028-2035, falling from €387 billion. Adjusted for real prices, this results in a 30% decrease. The framework will collapse into a mega-fund managed through National and Regional Partnership Plans. New payment caps will limit direct support to €100,000 per year per farmer, with tiered cuts on larger amounts. This raises opposition from powerful farming lobbies, particularly as Ireland, a net EU budget contributor, relies heavily on CAP support.
Under the new proposal, CAP funding would fall to €300 billion for the next seven-year period, compared to €387 billion allocated for 2021-2027, marking a 30% reduction when adjusted for real prices.
Direct farm payments would face new caps, with income support limited to €100,000 per year per farmer, and significant tiered reductions for larger recipients to reallocate support towards smaller farms.
Resistance from Europe's influential farming lobby is anticipated as member states express concern over caps on farm subsidies and the merging of CAP’s two-pillar structure.
Ireland, as a net contributor to the EU budget since 2013, faces economic risks from CAP cuts, with nearly €2 billion annually received to support its farming sector.
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