The European Commission is proposing a new Common Agricultural Policy (CAP) with "simpler and more flexible rules" specifically with new streamlined payments.

But what might that look like in the future for Irish farmers?

According to the EU Commissioner for Agriculture, Christophe Hansen, CAP "remains a key priority for EU funding for the next financial period" - which covers 2028 to 2034.

But one major change proposed is that the current two-funds structure Pillar 1 and Pillar 2 - will merge under one single umbrella.

The commission has detailed that support to agriculture and rural areas will be delivered through the new "National and Regional Partnership Plans" which will bring "key EU funding tools under one roof".

Commissioner Hansen has confirmed that "at least €300 billion" has been ringfenced by the commission for CAP which represents 80% of the current budget.

He also outlined that a ringfenced budget means that it is "protected only for the purpose of income support for the farmers and cannot be subject to flexibilities".

But under the European Commission's new CAP proposals the term "income support" will have a wider definition and cover area-based payments and all other compensation and payments to farmers, such as agri-environmental actions, investments and support for young farmers.

The commission has also indicated that "a new approach setting minimum and maximumamounts per hectare" will make hectare-based payment more uniform among member states.

What key measures is the European Commission proposing?

Phasing out of income support for older farmers who receive national pensions;
Coupled income support - increasing the maximum spending to 20% from current 13%, with a possibility for member states to add additional 5% for specific sectors such as livestock;
Transition payments - lump sum payments of up to €200,000 to "de-risk a farm's transition to more sustainability";
Support for larger farms - will be capped to €100,000.
Smaller farm scheme - new consolidated payment up to €3,000 for small farmers;
Starter pack for young farmers - higher per-hectare support and setup aid;
Unity Safety Net - doubling agricultural reserve to capacity of €6.3 billion;
Farm relief services - new support to replace farmers during sickness, childbirth or holidays;
Farmers to be financially incentivised to to do more for the environment, climate, biodiversity and animal welfare.

Commissioner Hansen yesterday (Wednesday, July 17) told the European Parliament AGRI Committee that the "key pillars of the new CAP structure are: income, incentives, innovation and rural entrepreneurship".

The Commissioner added: "Income remains essential. We maintain financing based on aid per hectare but with simpler structure. 

"Our support to farmers must also be better targeted. The direct payments per hectare farmers know, the area-based support, will be ring-fenced and fully financed by the EU budget. This does not change. But we are making other proposals to make sure that it supports those who need it the most. Degressivity and capping will ensure that young, small and family-sized farms get adequate support".

The commission's proposals for the next CAP underline that support "should be focused on active farmers defined in compliance with the World Trade Organisation".

"With a view to further improve the performance of the CAP, area-based income support should be targeted towards farmers who exercise agriculture as a principal activity. Income support should be targeted to farmers who need it most with a particular attention to the farmers in areas with natural constraints, women, young and new farmers," the commission outlined in its proposal document.

It also detailed that the "criteria defining the concept of principal activity might include the share of agricultural income within the total income, labour inputs on the farm, company object and inclusion of their agricultural activities in national or regional registers".