The future of the CAP: economic realism, competitiveness and administrative simplification

The Common Agricultural Policy (CAP) remains the cornerstone of safeguarding the European Union’s food sovereignty, ensuring stable farm incomes, and supporting rural communities. In a global context deeply shaped by market volatility, the impact of climate change and geopolitical tensions, the European agri-food sector has shown remarkable resilience. However, the mid-term evaluation of the 2023–2027 period requires us to reflect deeply and pragmatically on which elements are working and which demand an urgent strategic shift in the design of the next CAP.

As representatives of the business sector in the EESC, our priority is to ensure that European policies are not only well intentioned, but also economically viable and workable on the ground. The primary sector is, above all, an economic driver; without business profitability, there can be no sustainability, not environmental nor social.

The data gathered in our evaluation clearly shows that direct payments and the redistributive measures of the CAP act as an essential safety net to reduce farmers’ income instability. For this reason, the EESC position is firm: in the long term, it is essential to maintain a CAP with a clearly differentiated two-pillar structure. The first pillar must continue to protect direct income support and market stability, while the second pillar must focus on integrated rural development.

For this system to remain effective, the overall CAP budget must be increased and indexed to offset the effects of inflation and the sharp rise in input costs. We also believe it is essential to strengthen coupled support in order to provide effective backing to active farmers, who are the ones genuinely risking their capital and sustaining the productive fabric.

One of the sector’s long-standing challenges is the imbalance of power in the food supply chain. While sectoral programmes and integration into Producer Organisations have strengthened collective marketing, imbalances and commercial practices that undermine producers’ profitability persist. Strengthening farmers’ contractual position and ensuring genuine price transparency must be an absolute priority for the EU authorities.

At the same time, generational renewal remains a critical issue. Although start-up aid is valuable, the CAP alone cannot resolve structural barriers such as access to land or credit constraints. It is essential to coordinate European funds with national policies that offer attractive tax incentives for retirement and farm transfer. In this respect, linking direct payments to national pension rights is not considered an acceptable or effective approach.

As regards the social conditionality recently introduced, there is concern from both the business perspective and national administrations about how complex it is to implement. There is a real risk of creating unfair double penalties and adding bureaucracy without delivering a clear net social benefit, especially since national labour laws already sanction non-compliance. The focus should be on simplification, not on adding further layers of control.

If there is one unanimous message from all stakeholders in the sector, it is the suffocating administrative burden and excessive regulatory complexity of the current CAP. The proliferation of administrative procedures and the rigidity of certain eco-schemes — which often do not reflect the structural realities of each region — not only undermine producers’ confidence but also reduce their competitiveness and create serious stress and mental health problems across the sector.

Ambitious environmental goals are needed, but they must be backed by proportionate incentives, regional flexibility and stronger technical advice through the Agricultural Knowledge and Innovation System (AKIS).

In short, Europe needs a strong CAP, backed by a solid budget, that protects our production model and firmly commits to administrative simplification. Only by ensuring the economic viability of our agri-food businesses can we guarantee a living, innovative and sustainable rural environment.

By Josep Puxeu Rocamora, EESC Employers’ Group member and Co-rapporteur of Opinion NAT/968 Evaluation of Common Agricultural Policy delivery on its objectives.