Ireland's European Commissioner, Michael McGrath has said there is strong support for the Common Agricultural Policy (CAP) in the European Commission.
The commission is due to present its proposals on the next long-term EU budget, which is known as the Multi-Annual Finance Framework (MFF), on July 16.
The commission is also set to unveil proposals on the format of the next CAP post-2027 next month.
It has been reported that the commission is considering a ‘single fund’ approach to the MFF for each country, which has led to concerns that the traditional two pillar format of CAP may change.
Commissioner McGrath, who has responsibility for democracy, justice, the rule of law and consumer protection, told Agriland in Brussels that "no decision has yet been made" on the next CAP budget.
"We are in the process of negotiating the first draft of the MFF at this point in time. The intention is to bring it to college [of commissioners] in mid-July.
"There is very strong support for CAP within the commission.
"We recognise how important it has been for food security, as a source of income for farmers and indeed the role it has played in ensuring that there is food availability and affordability for many consumers as well," he said.
Commissioner McGrath said he has "ongoing discussions" with EU Commissioner for Agriculture, Christophe Hansen and EU Commissioner for budget, Piotr Serafin in relation to the CAP.
"I'm satisfied that there is a very good understanding of the importance of it for many member states, including Ireland, and a good understanding of the importance of it for the regions.
"In relation to the structure, we all know the significance of Pillar I in terms of direct payments, the importance of Pillar II in terms of regional development as well.
"No decision has yet been made, but there has been direct engagement with the farming community.
"We understand what their perspective is. I think in broad terms they want the structure as it currently is to be maintained. But of course, they want the larger CAP and they want it to do more.
"When it comes to the amount of funding, it fits into the overall picture and the overall negotiation that is underway," he said.
However, the commissioner warned that the next budget must provide for the capital repayments of the next generation EU loans to kick in in 2028.
"That's a very substantial amount of funding - perhaps €20-25 billion - that will have an impact.
"So the EU has to examine new potential own resource initiatives and member states will also need to reflect on the level of contribution that they are willing to make.
"All of that then has to meet the ambitions that are there or fall short depending on the willingness to agree new sources of income or indeed pay more into the EU budget," Commissioner McGrath said.