Agriculture is the foundation of Europe, but farming today goes well beyond growing food. It involves environmental protection, climate adaptation, and keeping farms economically viable over the long term. If you are a farmer in the European Union, you have probably heard about the new Common Agricultural Policy (CAP) and the introduction of eco-schemes.
But what do these changes actually mean for your day-to-day operations and your farm income? This guide breaks down the CAP 2023–2027, explains how eco-schemes work in practice, and looks at where European agriculture policy is heading next.
Understanding the CAP 2023–2027
The new CAP was originally planned for 2021–2027, but formally began on 1 January 2023 after a two-year transition period. This revised policy represents a significant shift in how the EU supports its farmers. The CAP 2023–27 is governed by three main regulations, most notably Regulation (EU) 2021/2115, which establishes rules on support for national CAP Strategic Plans.
The focus is no longer only on subsidizing production. Instead, the policy aims to build a sustainable, resilient, and modern agricultural sector. Three principles define the current CAP.
Fairer support. Income support is now distributed more equitably, with greater emphasis on small and medium-sized family farms and young farmers entering the industry.
Greener ambitions. A substantial share of the CAP budget is legally ring-fenced for environmental and climate-action programs. At least 40% of the total CAP budget must be climate-relevant, and the EU has committed to dedicating 10% of its overall budget to biodiversity objectives by the end of the current multiannual financial framework.
A results-based approach. Member states now have more flexibility to tailor CAP rules to their own local conditions through National Strategic Plans, with greater emphasis on measurable outcomes rather than strict compliance rules.
What are eco-schemes
Eco-schemes are one of the largest innovations in the 2023–2027 CAP. They are voluntary programs that reward farmers who adopt environmentally friendly practices. While basic income support requires farmers to meet minimum baseline standards (known as conditionality), eco-schemes go a step further.
They are optional. No farmer is compelled to participate, but doing so gives a significant boost to direct payments.
They are adaptable. Each member state offers a range of eco-scheme options, and farmers can select the ones best suited to their farm. Across the 28 approved CAP Strategic Plans, member states designed a total of 158 different eco-schemes.
They are well-financed. Each EU member state must allocate at least 25% of its direct payments budget to eco-schemes. The total EU-wide budget for eco-schemes stands at EUR 44.7 billion, against a total of EUR 190 billion under Pillar I of the CAP 2023–2027. During a two-year learning period (2023–2024), member states could spend less than 25% if farmer uptake was lower than planned, provided the shortfall was made up by the end of 2027.
Practical examples of eco-scheme practices
Several types of farming practices qualify for eco-scheme payments. The most common include the following.
- Organic farming and agroecology. Reducing or eliminating synthetic fertilizers and pesticides in favor of biological and ecological methods.
- Crop rotation and diversification. Growing different crops in sequence on the same field to improve soil health and reduce pest pressure.
- Precision farming. Using technology such as GPS-guided equipment and soil sensors to apply water, fertilizers, and crop protection products in precise amounts, reducing waste and runoff.
- Carbon farming. Practices that capture and store carbon in the soil, such as planting cover crops, adopting regenerative agriculture techniques, or reducing tillage.
- Animal welfare improvements. Eco-schemes can also support practices that improve housing conditions, reduce antibiotic use, or extend outdoor access for livestock.
By adopting these practices, farmers receive additional financial support while investing in the long-term fertility and resilience of their own land.
What comes after 2027
Although the current CAP is still in its implementation phase, policymakers are already preparing the next framework. The European Commission unveiled its proposal for the CAP 2028–2034 in mid-July 2025, alongside the draft for the next Multiannual Financial Framework (MFF). Key features include capping direct payments at EUR 100,000 per farm, mandatory degressive payments for larger holdings, and a dedicated generational renewal strategy for young farmers.
Parliamentary debate on the new CAP has already revealed several clear trends.
Stricter climate requirements. The push toward sustainability will intensify. Future policies are expected to align more closely with the European Green Deal and the Farm to Fork strategy.
Digitalization and AI. Stronger incentives are expected to encourage farmers to adopt digital tools, artificial intelligence, and smart farming technologies that optimize yields while reducing environmental impact.
Food security as a priority. Recent global disruptions have highlighted the importance of European food independence. The next CAP will likely try to balance ambitious environmental regulations with the need to maintain stable farm production levels.
Adapting early pays off
Adjusting to the CAP 2023–2027 and its eco-schemes may feel complex at first, but the transition is worth the effort. The earlier a farm shifts toward greener practices, the better positioned it will be to access financial support and remain profitable over the long term. With policy direction clearly moving toward sustainability, farmers who act now are building resilience for the decades ahead.
References
- European Commission. (2023). CAP 2023–27 at a glance.
- European Commission. (2023). CAP and the environment.
- EU CAP Network. (2023). Thematic Group on Eco-schemes: Background Paper.
- European Commission. (2023). Eco-schemes: Income support.
- European Commission. (2025). The CAP post-2027 in the next EU budget.
