EU wants farming subsidy cap in budget overhaul, draft shows

15/7/2025 7:19

Brussels is set to propose capping the EU subsidies a single farmer can receive each year, in an attempt to redistribute the bloc's massive farming subsidies in favour of smaller businesses, a draft European Commission proposal seen by Reuters, showed.



The document is part of the Commission's proposal for the European Union's next budget, due to be published on Wednesday. The EU's mammoth Common Agricultural Policy (CAP) of farming subsidies is today worth around 387 billion euros ($451 billion), or a third of the bloc's entire budget for 2021-2027.



The Commission proposal would attempt to redistribute more subsidies to smaller farmers, by capping at 100,000 euros per year the area-based income support they can receive, the draft said.



It would also progressively reduce the amount paid out per hectare, for those receiving the most.