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EU Simplifies Agricultural Policy: Farmers Could Save €1.6 Billion Annually

FOOD & AGRICULTUREEU Simplifies Agricultural Policy: Farmers Could Save €1.6 Billion Annually

Nearly €1.6 billion—that’s the estimated annual savings for farmers following the simplification of the EU’s Common Agricultural Policy (CAP). The package of changes, proposed by the European Commission in May, aims to reduce a number of administrative burdens currently placed on farmers applying for EU support. The changes are particularly relevant for small-scale farmers. Experts emphasize that any reform enhancing the competitiveness of EU agriculture is welcome, provided it maintains high food safety standards.

“Market rules should be clear and understandable. We are in the midst of global market competition, and the Common Agricultural Policy should strengthen our competitiveness. Any elements of the CAP that may weaken this competitiveness should at least be reconsidered and adjusted. Simpler solutions are always more transparent for beneficiaries, and the rules of the game become fairer,” says Prof. Szczepan Figiel from the Department of Agricultural Economics and Policy and Rural Development at the Institute of Agricultural and Food Economics – National Research Institute.

According to a European Commission survey conducted in spring 2024, one in four farmers spends five to six days per year handling administrative tasks related to CAP applications, and one in three spends more than six days. Additionally, 78% of farmers rely on professional external help to prepare and submit their applications.

“The CAP has a long history—also a history of constant changes, expansions, and occasionally simplifications. However, over time, more duties, expectations, and requirements have been imposed on farmers,” notes Prof. Figiel. “Farmers are understandably reluctant to engage in activities that require effort but don’t yield clear production or income benefits. Therefore, these burdens should be reduced.”

Thirty-six percent of farms were inspected once in the past three years, while 16% were inspected at least three times. These inspections were not necessarily CAP-related. Preparing for such controls and accompanying inspectors on-site typically takes from half a day to a full day (63%). The European Commission has announced plans to simplify inspection methodology and reduce the number of on-site visits by 50% (to one per year), with the process supported by satellite and digital technologies.

This is part of the reform package proposed by the Commission in May, aimed at reducing both administrative and inspection-related burdens, improving crisis response mechanisms, and addressing investment needs in the sector. As the Commission emphasizes, regulatory burdens are time-consuming and costly for both farmers and national administrations. This leads to lower acceptance of obligations and can discourage investment.

A key reform is the simplified payment system for small-scale farmers, under which the annual one-time payment will increase from €1,250 to €2,500. The new system aims to ease administrative strain on both farmers and public authorities. Small-scale farmers will also be exempt from certain environmental (conditionality) rules while remaining eligible for eco-scheme payments. According to Commission estimates, these changes alone could save farmers up to €1.46 billion annually. In total, including all related benefits, the package could yield about €1.6 billion in savings for farmers and over €200 million for national administrations.

“One crucial area of potential reform is payment targeting. It’s questionable—especially from a development standpoint—to make payments simply because someone owns land. Agricultural support is essential for ensuring food security, but public intervention should be directed toward modernization, enabling us to keep up with technological changes,” explains the IERiGŻ expert. “That means digitalization, implementing algorithms, and artificial intelligence methods—which are important not only for production efficiency but also for meeting environmental and climate requirements.”

Attracting young people to the agricultural sector is another key challenge, he adds. The reform package includes support for digital transformation, such as the development of “once-only” data submission principles and one-stop-shops for data reporting by farmers.

The Commission also proposes easier recognition procedures for organic farming and more flexible support tools for farmers during crises, natural disasters, or animal disease outbreaks.

“We should also look into other areas for deregulation—especially when it comes to unclear environmental requirements that may be seen by farmers as restrictions on their freedom and competitiveness. Farmers understand how important the natural environment is. However, some regulations may appear artificial, so a dialogue-driven simplification process would be highly valuable,” says Prof. Figiel.

European Commissioner for Agriculture and Food, Christophe Hansen, has urged EU institutions to finalize the legislative process by the end of the year so the changes can come into effect in 2026. The simplification package is a key outcome of the EU’s vision for agriculture and food policy, presented in February 2025.

“The main goal of the CAP is to ensure our food security. Any change or simplification that would—even slightly—jeopardize the food security of Poland or the EU as a whole should not be promoted,” the expert reminds. “Consumers expect high-quality food and adherence to standards. These standards—although sometimes seen as burdens—are essential. Thanks to them, our agriculture and food sector can succeed in global markets, like South Korea, where you can find Polish milk on supermarket shelves.”

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