Brussels,


​The EAGF  (the “first pillar” of the CAP) is one of the two funds for the Agriculture and primarily finances income support for farmers and market measures. The EAGF has an allocation of €291.1 billion. Up to €270 billion will be provided for income support schemes, with the remainder dedicated to supporting agricultural markets.

​Through the EAGF, EU countries must offer:
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  • a basic payment scheme for farmers (based on their farm’s size in hectares and additionally, EU countries can choose to offer other payments)
  • green direct payments (for sustainable farming methods)
  • a payment for young farmers

EU countries can also use the EAGF to fund specific schemes to help small and medium sized farms, farmers who operate in areas of natural constraint, and sectors undergoing difficulties. The EAGF also funds measures to support and stabilise agricultural markets. These measures operate as part of the Common Market Organisation.

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Click to read the Current consolidated version


Income support

​The EAGF supports EU farmers through different payment schemes, including a basic payment scheme, a payment for sustainable farming methods (“green direct payments”) and a payment for young farmers. All payments are subject to compliance with EU rules on food safety, environmental protection, and animal welfare.

Direct payments, introduced in 2013 and changing the previous method, are payments granted directly to farmers to ensure them a safety net. They are mainly granted in the form of a basic income support, decoupled from production, stabilising their income stemming from sales on the markets, which are subject to volatility.

​In order to maximise their profits, producers must respond to market signals, so that they produce goods that are demanded by consumers. Direct payments also contribute, through greening, and in combination with cross-compliance, to providing basic public goods.
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The EU links the majority of income support for farmers to two main criteria:

  • The farmed hectares, not the quantities produced. Farmers have to respond to market demands in order to increase profit. Decoupling (delinking) payments from the quantity produced avoids overproduction.
  • Respect for the environment, plant health, and animal health and welfare, contributing to sustainable agriculture. This is referred to as 'cross compliance' up to 2022 and changed into an enhanced ‘conditionality’ in the CAP 2023-27. Farmers not complying with EU rules can see their payments reduced or stopped entirely. 


New CAP: 2023-27

The reform of the common agricultural policy (CAP) applicable for the years 2023-27 was adopted by the European Parliament and the Council of the EU on 2 December 2021.

EU countries implement the new CAP 2023-27 with a CAP Strategic Plan at national level. Each Plan combines a wide range of targeted interventions addressing the specific needs of that EU country and delivers tangible results in relation to EU-level objectives.

The Common Agricultural Policy (CAP) 2023-27 represents a modernized approach with a strong emphasis on results and performance. Formally adopted on 2 December 2021 and effective from 1 January 2023, the reformed CAP aims to create a fairer, greener, and more performance-based agricultural framework within the European Union (EU).
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Key Objectives and Reforms

  • Ten Specific Objectives: The policy focuses on ten objectives linked to social, environmental, and economic sustainability in agriculture and rural areas. These objectives guide the CAP's direction and ensure alignment with common EU goals.
  • National Strategic Plans: Each EU country has developed a CAP strategic plan (see below) that combines funding for income support, rural development, and market measures. These plans are tailored to national needs and contribute to the ten specific objectives using a toolbox of policy measures provided by the Commission.
  • Performance and Results Focus: A new performance, monitoring, and evaluation framework has been established, including a common set of indicators. Annual performance reports and biannual reviews assess progress toward targets and CAP objectives.

Key Areas of Reform

  1. A Greener CAP:
    • Higher Green Ambitions: CAP Strategic Plans must align with environmental and climate legislation, contributing to the European Green Deal's goals, including the Farm to Fork and Biodiversity strategies.
    • Enhanced Conditionality: Farmers receiving CAP payments must comply with stronger mandatory requirements to promote biodiversity and protect wetlands and peatlands.
    • Eco-Schemes: At least 25% of direct payments are allocated to eco-schemes that incentivize climate- and environment-friendly farming practices.
    • Rural Development Funding: A minimum of 35% of rural development funds support climate, biodiversity, environment, and animal welfare measures.
    • Climate and Biodiversity Targets: 40% of the CAP budget is climate-relevant, supporting the EU's commitment to allocate 10% of its budget to biodiversity objectives by the end of the Multiannual Financial Framework (MFF) period.
  2. A Fairer CAP:
    • Redistribution of Income Support: At least 10% of direct payments are dedicated to supporting smaller and medium-sized farms.
    • Active Farmers Definition: Only active farmers, as defined by each EU country, are eligible for certain EU support, ensuring funds reach those actively engaged in farming.
    • Social Conditionality: CAP payments are linked to adherence to EU labor standards, promoting better working conditions on farms.
    • Support for Young Farmers and Gender Balance: At least 3% of direct payments support young farmers, and for the first time, gender equality and increased participation of women in farming are objectives within CAP Strategic Plans.
  3. Improving Competitiveness:
    • Enhanced Bargaining Power: New rules encourage farmer cooperation to strengthen their position in the supply chain.
    • Market Orientation and Crisis Management: The CAP maintains market orientation, includes a financial reserve of at least €450 million per year for crises, and provides specific support for sectors like wine.

Budget and Funding

  • Robust Financial Support: The CAP has a budget of €387 billion for 2021-27, funded through the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).
  • Next Generation EU Contribution: An additional €8 billion from Next Generation EU supports rural areas in achieving the European Green Deal's objectives and digital transition.
  • Flexibility in Funding Allocation: EU countries can transfer up to 25% of their CAP allocations between income support and rural development to address national priorities effectively.

Emphasis on Knowledge and Innovation
  • Research and Innovation Investment: €10 billion from the Horizon Europe program is allocated to food, farming, rural development, and the bioeconomy.
  • Agricultural Knowledge and Innovation Systems (AKIS): Strengthened AKIS promote innovation projects, dissemination of results, and widespread adoption of new knowledge and technologies in agriculture.

The CAP 2023-27 ushers in a new way of working by modernizing agricultural policy with a focus on sustainability, fairness, and performance. By setting clear objectives, encouraging national customization through Strategic Plans, and emphasizing environmental goals alongside economic viability, the reformed CAP aims to secure a sustainable future for European agriculture.

It supports farmers in transitioning to more sustainable practices, ensures fair distribution of funds, enhances competitiveness, and fosters innovation and knowledge sharing across the EU.


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The National Strategic Plans

The new CAP follows a performance- and results-based approach built around ten objectives, which frame the EU countries’ CAP Strategic Plans. These combine targeted interventions addressing specific needs and delivering on EU-level objectives.

EU countries must implement the new CAP with a national strategic plan. Each plan will combine a wide range of targeted interventions targeting the specific needs of that EU country and produce tangible results in relation to the objectives at EU level, while contributing to the ambitions of the European Green Deal.

EU countries were asked to produce a thorough assessment of what needs to be done, based on a strengths, weaknesses, opportunities and threats (SWOT) analysis of their territory and the agri-food sector.

​EU countries submitted their CAP Strategic Plans. Then, the Commission  approved the Plans ahead of their implementation in January 2023. The approval process is based on the criteria laid down in Regulation (EU) 2021/2115 establishing rules on support for strategic plans to be drawn up by EU countries under the common agricultural policy (CAP Strategic Plans).
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The Commission assessed whether the EU countries’ CAP Strategic Plans contribute to, and are consistent with, EU legislation and commitments in relation to climate and the environment, including those laid out in the Farm to Fork and Biodiversity strategies and supported EU countries throughout the whole process of preparation of their CAP Strategic Plan so that:
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  • EU countries have made full use of the new CAP and its tools to support their farmers in the transition to greater sustainability in our food systems.
  • Each CAP strategic plan included an intervention strategy to explain how each country would use CAP tools to achieve CAP objectives, in line with the Green Deal ambitions.


​Check the National CAP Strategic Plans

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Click to read the last published report (2023)
EAGF Financial report on 2022

For the whole financial year, the total of the decided amounts of payments was EUR 40 650.8 million.

​Taking into account recovered amounts from clearance decisions and reimbursement of previously suspended amounts, EUR 40 410.2 million have effectively been paid to Member States.

Payments made by the Member States are covered by the system for monthly payments.

The monthly payments are a reimbursement of net expenditure (after deduction of revenue) which has been already carried out and are made available on the basis of the monthly declarations forwarded by the Member States .