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opinion parliamentary committee draft, 18 June 2025

On general budget of the European Union for the financial year 2026 – all sections

Document AGRI-PA-774421 · (2025/0000(BUD))

Committee on Agriculture and Rural Development · Rapporteur: Dario Nardella

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AI:In short

This draft opinion from the Committee on Agriculture and Rural Development addresses the 2026 EU budget, focusing on the Common Agricultural Policy (CAP). It welcomes proposed funding levels but raises concerns about the EAGF margin and calls for support for farmers, young entrants, and rural development.

Position. The Committee on Agriculture and Rural Development calls on the Committee on Budgets to incorporate its views into the motion for a resolution, welcoming certain allocations but urging changes on margins, crisis reserve, young farmers, and promotion funding.

Key points

  1. Welcomes the Commission's proposal of EUR 56.97 billion in commitment appropriations and EUR 53.13 billion in payment appropriations under Heading 3, with EUR 54.79 billion for agriculture and maritime policy.
  2. Recalls that CAP objectives under Article 39 TFEU must guide spending, including fair farmer incomes, market stability, and food supply, and cannot be subordinated to external pressures.
  3. Notes concern that the EAGF margin has fallen to EUR 76 million, limiting flexibility to respond to shocks like climate events or market volatility.
  4. Urges the Commission to ensure the 2026 budget provides flexibility to address geopolitical risks from Russia's war in Ukraine, including input costs and supply chain disruptions.
  5. Calls for trade agreements to respect reciprocity and avoid undermining EU producers through imports not meeting equivalent standards.
  6. Welcomes the increase in the agricultural crisis reserve from EUR 280 million to EUR 450 million and urges better accessibility and faster activation.
  7. Regrets the lack of a visible increase in EAFRD allocations for young farmers and urges prioritising start-up support and access to land and finance.
  8. Expresses concern over the removal of funding for promotion programmes and calls for reinstatement to protect EU agri-food competitiveness.
  9. Welcomes increased sectoral allocations for fruit and vegetables and stresses support for vulnerable sectors like olive oil, apiculture, and wine.
  10. Calls for stable funding for EU school schemes for fruit, vegetables, and milk to promote healthy diets.
  11. Supports EUR 13.3 billion for EAFRD and stresses maintaining support for smart villages, rural infrastructure, and innovation.
  12. Emphasises investing in water management, irrigation modernisation, soil resilience, digitalisation, and precision farming, and simplifying access to digital funding for small farms.

Who is affected

  • EU farmers, particularly young farmers and new entrants, who would benefit from strengthened start-up support and access to land and finance.
  • EU agri-food producers, whose promotion programmes funding has been removed, affecting their competitiveness and reputation.
  • Sectors like fruit and vegetables, olive oil, apiculture, and wine, which receive sectoral support.
  • School children participating in EU school schemes for fruit, vegetables, and milk.
  • Small and medium-sized farms, which would benefit from simplified access to EU digital funding.

Figures and deadlines

  • EUR 56.97 billion in commitment appropriations and EUR 53.13 billion in payment appropriations under Heading 3.
  • EUR 54.79 billion of commitment appropriations for agriculture and maritime policy, an increase of 0.8% compared to 2025.
  • EAGF margin decreased to EUR 76 million.
  • Agricultural crisis reserve increased from EUR 280 million to EUR 450 million.
  • EUR 13.3 billion allocated to EAFRD.

Legal basis. Article 39 TFEU

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Full text

Opinion 21 paragraphs

The Committee on Agriculture and Rural Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

General budgetary considerations for the Common Agricultural Policy

1.Welcomes the Commission’s proposal to allocate EUR 56,97 billion in commitment appropriations and EUR 53,13 billion in payment appropriations under Heading 3 “Natural Resources and Environment”, and notes that EUR 54,79 billion of those commitment appropriations is dedicated to Cluster 8 “Agriculture and Maritime Policy”, an increase of 0,8 % compared to 2025;

2.Recalls that Article 39 TFEU sets out the objectives of the Common Agricultural Policy (CAP), which include support to fair living standards for farmers, market stability, increased productivity, safeguard of food supply, and maintaining fair prices for consumers; stresses that those objectives must continue to guide the EU’s agricultural spending priorities and cannot be subordinated to changing external policy pressures; emphasises agriculture’s strategic importance in delivering on key EU priorities such as sustainable and inclusive growth, social inclusion, climate resilience, biodiversity, and vibrant rural communities;

3.Notes with considerable concern that the margin under the European Agricultural Guarantee Fund (EAGF) sub-ceiling has decreased significantly to just EUR 76 million, which reduces the EU’s flexibility to respond to unforeseen shocks such as climate events, epizootic diseases, or market volatility;

Geopolitical context and strategic resilience

4.Draws attention to the ongoing impact of the Russia’s war of aggression against Ukraine on EU agricultural markets, in particular due to rising input costs, supply chain disruptions, and regional instability; urges the Commission to ensure that the 2026 budget provides sufficient flexibility and strategic capacity to tackle evolving geopolitical risks;

5.Stresses that the CAP budget must be aligned with international trade commitments and EU global food security responsibilities; calls for trade agreements to respect the principle of reciprocity and to avoid undermining EU producers through imports not meeting equivalent environmental, social, or food safety standards;

Crisis preparedness and risk management

6.Welcomes the increase in the agricultural crisis reserve from EUR 280 million to EUR 450 million as a reflection of the growing need for risk management; urges the Commission to improve the reserve’s accessibility and activation mechanisms to ensure faster response during crises;

7.Notes that despite that increase, the overall financial space under EAGF remains narrow, and reiterates the need to fully utilise all flexibility instruments under the multiannual financial framework, including unused margins and special instruments, in response to agri-food shocks;

Generational renewal and social resilience

Read the rest (9 paragraphs)

8.Reaffirms the urgency of supporting generational renewal in agriculture; regrets the lack of a visible increase in the European Agricultural Fund for Rural Development (EAFRD) allocations dedicated to young farmers and new entrants; urges the Commission and Member States to prioritise and strengthen start-up support and access to land and finance under the CAP Strategic Plans, particularly for young and new entrants into farming;

Sectoral programmes and competitiveness

9.Expresses serious concern over the complete removal of funding for promotion programmes under direct management, which previously supported EU agri-food exports and consumer awareness; calls for a reinstatement of appropriate funding to protect competitiveness and reputation of EU production;

10.Welcomes the significant increase in sectoral allocations for fruit and vegetables and stresses the importance of maintaining support for these and other vulnerable sectors (e.g. olive oil, apiculture, wine), which contribute to sustainable production and rural employment;

11.Reiterates the value of the EU school schemes for fruit, vegetables and milk in promoting healthy diets and positive attitudes toward farming; calls for stable, transparent, and sufficient funding to ensure continuity and broader reach of these programmes;

Rural development and innovation

12.Supports the proposed allocation of EUR 13,3 billion to the EAFRD and stresses the importance of maintaining support for smart villages, the development of rural infrastructure and innovation;

13.Emphasises the need to invest in sustainable water management, irrigation modernisation, and soil resilience within CAP Strategic Plans, particularly in light of increasing climate variability and the rising risk of drought;

14. Encourages the further integration of digitalisation and precision farming into rural development objectives and urges the Commission to simplify access to EU digital funding for small and medium-sized farms; stresses that digital transformation is key to achieving more efficient, sustainable and high-performing agriculture, and to making rural employment more attractive; recalls the importance of ensuring that research results reach farm level and are translated into accessible farm advisory services; draws attention to the role of stronger Agricultural Knowledge and Innovation Systems (AKIS), as well as the Farm Sustainability Data Network (FSDN), in encouraging innovation projects and promoting their uptake.