The President of the European Commission, Ursula von der Leyen, has committed to a proposal to make an further €45 billion available in the first year (2028) of the EU's next long-term budget for farm payments.

However, it is understood that this is not new money but is funding reserved for the midterm review of the National and Regional Partnership Plans.

President von der Leyen is proposing to bring forward the availability of some of that money to 2028 for use to support farm payments.

It has been widely reported that this move from the commission president is an effort to shore up support for the EU-Mercosur Trade Agreement.

President von der Leyen confirmed her plans in a letter to President of the European Parliament Roberta Metsola and President of Cyprus Nikos Christodoulides (Cyprus currently holds the rotating presidency of the Council of the EU).

In the letter, seen by Agriland, the commission president said: "The Common Agricultural Policy in the 2028-2034 financial framework will continue to play its role as the main EU policy tool to provide farmers with a fair income, to ensure long-term food security and to improve the attractiveness and living standards in rural areas.

"While having access to a larger pool of resources in the National and Regional Partnership Plans [NRPP], farmers will benefit from a ringfenced amount of €293.7 billion," she said, reiterating proposals for the CAP that were announced in the summer.

However, President von der Leyen then added: "To ensure additional resources are available as of 2028 for addressing the needs of farmersand rural communities, I propose that member states will have access, when submitting their [NRPP] plan, to up to two-thirds of the amount normally available for the midterm review.

"This represents about €45 billion that can be mobilised immediately to support farmers," she said.

The commission president then cited other proposed innovations for the next CAP to support farmer incomes, saying: "The ringfenced amounts for the Common Agricultural Policy and the early access to the midterm review resources will come in addition to the doubled amount of €6.3 billion available for addressing market disturbances and stabilising agricultural markets.

"In addition, farmers will benefit from the possibility to receive crisispayments out of the 10% flexibility amount in the National and Regional Partnership Plans in case of natural disasters, adverse climatic events or animal diseases," she added.

"The combination of these policy and budgetary tools will provide the farmers and rural communities with an unprecedented level of support, in some respects even higher than in the current budget cycle, that will make the European agricultural sector more competitive and better able to face global challenges," President von der Leyen said.

Mercosur

This new proposal from the commission on CAP comes as member states are set to vote on ratifying the EU-Mercosur Trade Agreement on Friday (January 9).

It is expected that Italy's vote will be key, with a vote in favour of the deal from Italy essentially pushing a 'blocking minority' against the deal out of reach.

Notably, Italian Prime Minister Giorgia Meloni has welcomed the commission president's letter on CAP, saying on social media: "I welcome the European Commission's decision to amend, as requested by Italy, the proposed new multiannual financial framework to make an additional €45 billion available for the Common Agricultural Policy starting in 2028.

"This is a positive and significant step forward in the negotiations leading to the new EU budget, demonstrating that the common-sense approach to supporting European agriculture, pursued with determination by the Italian government, is increasingly being listened to in Brussels," Meloni's translated statement said.

MEP reaction

Reacting to President von der Leyen's letter, Irish MEP Barry Cowen said: "While early access to midterm funds under the NRPP regulation represents a welcome element of flexibility, it does not constitute a secure or sustained increase in ring-fenced funding for the CAP.

"As a lead negotiator in the forthcoming CAP negotiations, a central priority for me will be to secure a higher level of ring-fenced funding for the CAP in order to provide farmers with income certainty across the entire budgetary period. The mere possibility of reallocating funds is insufficient," Cowen added.

"The farming sector requires adequate and predictable financing, underpinned by clear and binding commitments at both European and national level, to guarantee stable farm incomes irrespective of shifting political priorities or circumstances on the ground," he said.