In the European Parliament’s Agriculture Committee last Wednesday, calls were made for more clarity and certainty. During that meeting, the new (Luxembourgish) EU Commissioner Hansen presented his view on the future of the Common Agricultural Policy. What he notably did not say suggested he is hesitant about completely abolishing the so-called hectare subsidy.
At a recent meeting of European agriculture ministers, it was emphasized that the current CAP budget is already insufficient to adequately support farmers. On Monday, Hansen’s ‘vision for the future’ will again be on the ministers’ agenda. They are demanding additional resources. Agricultural organizations such as Copa-Cogeca continue to advocate for a stable and adequate agricultural budget.
These discussions have recently been complicated by growing financial pressure within the EU. The war in Ukraine and geopolitical tensions (due to the NATO shift under U.S. President Donald Trump) have led to large-scale rearmament plans requiring hundreds of billions of euros. This forces the EU to make difficult choices in the multiannual budget, putting agriculture, one of the largest expenditure items, under pressure.
The impact of trade agreements and sanctions on European agriculture remains a thorny issue. Debates over Russian fertilizers illustrate the dilemmas the EU faces. On one hand, strategic autonomy is pursued; on the other, these products are crucial for food production. At the same time, tensions rise due to new import tariffs on fertilizers, which further increase costs for farmers.
Another challenge for the agricultural sector is the impending liberalization of trade with Ukraine. The EU is preparing a new trade regime, under which agricultural products from Ukraine will gain greater access to the European market later this year. This has been met with criticism from the agricultural sector, which fears unfair competition and price pressure. Farmer organizations are therefore demanding protective measures and fair competition conditions.
EU Agriculture Commissioner Christophe Hansen is expected to present the concrete content of his policy plan in April, in which he will outline his vision for the future of the CAP. On Friday, he will make a working visit to the Netherlands.
Meanwhile, negotiations within EU bodies on agricultural policy after 2027 are beginning. These discussions run parallel to the broader debate on the EU's multiannual budget, which faces threats of heavy cuts. Former Commissioner Mario Draghi has already proposed a substantial budget shift, whereby agriculture will have to make major sacrifices in favor of other policy priorities such as defense and innovation.
The future of European agriculture depends on the political choices made in the coming months. As the EU seeks a balance between emerging geopolitical priorities and internal policy goals, the funding of agricultural policy remains a contentious issue.