EU simplifies CAP to support farmers, enhance competitiveness
The changes could save farmers up to €1.58 billion annually
16 May 2025
3 minute read
By: To simplify the Common Agricultural Policy (CAP) and boost farmers' competitiveness, the European Commission presented a large package of measures targeting the administrative burden, controls, implementation, crisis response and investment needs of the sector.
The changes could save up to €1.58 billion annually for farmers and €210 million for national administrations, while making payments, certain requirements, and crisis tools more flexible and easier to manage. This initiative is part of a broader simplification effort aligned with the EU's Competitiveness Compass and supports the competitiveness, resilience and digitalisation of the agricultural sector, as well as young and organic farmers specifically.
Farmers across the EU are subject to heavy administrative obligations that often fail to reflect the realities on the ground. This regulatory burden is time consuming and generates costs for farmers and national administrations. It leads to lower acceptance of obligations and may also discourage investment.
To address these challenges, the Commission is now proposing targeted solutions through a set of concrete legislative changes based on operational experience and extensive feedback from stakeholders and Member States.
Simplified payment scheme for small farmers
To make it more attractive, the annual lump-sum payment – that is, a single, annual disbursement – limit for small farmers will be increased from €1,250 to €2,500. The purpose of these payments for small farmers is to promote a more balanced distribution of support, strengthen the vitality of rural areas where small farms play a key economic role, and reduce administrative burdens for both farmers and authorities. These farmers will also be exempted from certain environmental rules (conditionality) while they may benefit from payments that reward eco-friendly farming (eco-schemes).
Simplified environmental requirements
The simplification package aims to better accommodate diverse farming practices and local conditions, while reducing overlap with existing national rules.
For example, certified organic farms will automatically be considered as meeting some of the EU's environmental requirements for funding.
For some of the more demanding requirements, farmers may benefit from incentives to protect peatlands and wetlands, as set out under Good Agricultural and Environmental Condition 2 (GAEC 2). This support will also help them comply with national rules that go beyond EU standards, ensuring fair compensation for their efforts.
To reduce the administrative burden of controls, controls will be streamlined through the use of satellite and technology. In addition, a new principle will be introduced: only one on-the-spot check per year per farm.
Strengthened crisis management
EU farmers affected by natural disasters or animal diseases will be better supported thanks to new crisis payments available under CAP Strategic Plans and thanks to more flexible and accessible risk management tools.
Member States will benefit from greater flexibility in adapting their CAP Strategic Plans, with prior approval from the Commission required only for strategic amendments. This will have a positive impact on the farmers who will benefit faster from the changes introduced.
Enhanced competitiveness and digitalisation
Small farmers will find it easier to get financial support through a new simple funding option offering up to €50,000 as a lump-sum to help improve the competitiveness of their farms.
National administrations will be further encouraged to develop interoperable digital systems. Following the “report once, use multiple times” principle, the aim is that farmers will only have to submit their data once, through a single system, saving time, cutting administrative costs, and improving farm management.
Next steps
The legislative proposal will now be submitted to the European Parliament and the Council for adoption.
Alongside changes to the main CAP rules, the Commission will also propose later this year further simplification measures, including from areas outside agriculture, aimed at reducing reporting and control burden and facilitating uptake of the new flexibilities offered by the CAP simplification omnibus. These steps are outlined in a roadmap.
