On guidelines for the 2026 budget – Section III

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OPINION

The Committee on Agriculture and Rural Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Highlights the crucial role of agricultural and rural development policies, particularly the common agricultural policy (CAP), in achieving the Union’s objectives under Article 39 of the Treaty on the Functioning of the European Union; highlights the fact that these policies are tools for farmers to provide safe, healthy, affordable and sustainable food of high quality, while ensuring fair and viable incomes for all farmers, in particular active, small-scale and young farmers, including targeting to prevent land abandonment and promoting short food supply chains; underlines that these policies aim to foster sustainable food systems and secure the long-term viability, profitability, sustainability and safety of EU agricultural production, the development of rural areas and the Union’s food sovereignty, while taking into consideration animal welfare standards, climate protection, mitigation and biodiversity measures; recalls, in this regard, that the strong and simplified EU financial support for a competitive and sustainable farming sector should be increased in the 2026 CAP budget allocation to better reflect the growing challenges in rural areas, including depopulation, and keep rural areas alive; underlines that, according to the latest Eurobarometer survey, support for the CAP has reached an all-time high, with over 70 % of respondents agreeing that the CAP fulfils its role in providing safe, healthy and sustainable food of high quality;

2. Notes that spending under the CAP significantly exceeds the climate and biodiversity mainstreaming targets and requests that this surplus be used to allocate funds that directly contribute to achieving the primary objectives of the CAP;

3. Calls on the Commission to secure additional funding for further nature objectives rather than relying on the CAP, which must above all remain a fund that ensures food security and a viable income for our farmers;

4. Upholds the promotion of EU agricultural products as a cornerstone of agricultural policy, with the aim of strengthening the competitiveness and relevance of all production sectors, especially that of wine and high-quality products, which need to have better access to both internal and external markets so as to promote diversification and internationalisation; recalls the success achieved by such promotion programmes in the opening up and consolidation of new markets; stresses the need to ensure an adequate promotion-policy budget in the coming financial years;

5. Stresses the need for a stronger, better equipped, flexible and more reactive agricultural reserve, with adequate funding to cope with market imbalances or unpredictable external factors, such as extreme and recurring weather events, animal diseases, water stress or an evolving geopolitical context, which are having an increasing impact on agricultural production and markets, farmers’ incomes, farm continuity and food security; calls on the Commission to make use of the crisis reserve in the most efficient, expeditious and transparent way; stresses the need to simplify administrative procedures in order to guarantee the swift disbursement of that aid; points out that an increase in the agricultural reserve must not affect direct payments; calls on the Commission to develop a comprehensive crisis management strategy for each major agricultural sector, ensuring the rapid and effective deployment of the crisis reserve, while considering the establishment of new crisis and risk management instruments; acknowledges though that the agricultural reserve alone cannot fully compensate for the increasing frequency and severity of extreme weather events caused by climate change; stresses the need to fund preventive mitigation and adaptation measures that enhance the resilience, including climate resilience, of rural areas and food production systems;

6. Strongly opposes any proposals to reduce the level of pre-allocated funds from the CAP in the future budget; points out that those funds should be increased by at least the equivalent of cumulative inflation since the start of the current budget period in order to avoid hidden reductions in CAP funding; stresses that farmers need the continuity and predictability of the CAP and that emerging new priorities cannot lead to cuts to the CAP budget; advocates for transparency and accountability in the allocation of CAP funds and encourages Member States and the Commission to enhance cooperation and strengthen anti-fraud measures; stresses the need for a fair distribution of CAP support between and within Member States; calls on the Commission to mobilise funds outside the CAP, given the challenges facing EU agriculture and to simplify the administrative procedures for farmers who receive aid; insists that any revenue accruing to the Union budget from assigned revenue or repayments of irregularities relating to agriculture should remain under the agriculture component of Heading 3 of the multiannual financial framework (MFF);

7. Underlines that CAP simplification measures adopted in 2024 must be the starting point for the next CAP reform;

8. Recalls that innovation can play a key role in enhancing the productivity, competitiveness, resilience and adaptability of agriculture; underlines, in this regard, the importance of increasing funding for research, thereby avoiding additional bureaucracy, both in the future budget allocations in the framework of the Horizon Europe research programme, as well as in the CAP, while creating funding mechanisms that ensure the continuity of existing and successful agri-food projects, established and funded through the NextGenerationEU instrument; calls therefore for adequate funding for climate change mitigation, precision agriculture, circular economy projects, renewable energy production in rural areas, development and technology-neutral innovation, including for projects promoting animal and plant health and the efficient use of resources, such as water, in agriculture; notes that production efficiency may also be an aim in itself, and that such funding should, in addition to improving the competitiveness of the agricultural sector, increase its resilience to challenges such as climate change and the spread of animal diseases; stresses the importance of ensuring adequate resources for training and knowledge exchange through European instruments, such as the Agricultural Knowledge and Innovation Systems;

9. Highlights the fact that digitalisation is a crucial tool in the development and enhancement of the value of rural areas, including inner areas, and plays a key role in addressing depopulation and attracting young people to these areas; welcomes the digital transformation in agriculture and rural areas, including its use in irrigation, to improve the efficiency, environmental, social and economic sustainability, traceability and precision of agricultural systems, ensuring more effective use of the EU’s budgetary resources and promoting entrepreneurship in rural areas, thus making them more attractive to people and businesses; calls on the Commission and the Member States, in this context, to strengthen the technological and communications infrastructure in rural areas, including broadband internet coverage, and encourages them to leverage technologies to enhance access to critical information and digitalise administrative processes for CAP support so as to reduce the bureaucratic burden and enable more efficient access to support and services; recalls that the uptake of innovative digital technologies requires sufficient funding, as well as targeted training, education and support programmes for farmers, particularly for small-scale and older farmers, to ensure equitable and affordable access to digital tools;

10. Notes with concern the continuing loss of farms and farmers, which has a significant socio-economic impact on rural areas; urges, therefore, the EU institutions and Member States to address labour and skills shortages by stepping up their efforts to promote generational renewal in the agricultural sector and rural areas, including in outermost regions and inner areas; highlights the importance of improving the profitability of the agricultural sector by enhancing fiscal and support measures that make farming activities more attractive and by improving access to land, financing and insurance, particularly for women, families involved in small-scale farming, marginalised groups and first-time farmers, such as young people; underlines that young farmers have the potential to be a driving force in sustainable and climate-friendly farming and highlights the need to empower them, including through the use of Union funds and adapted advisory and training tools; underlines that building and modernising rural infrastructure improves the quality of life in rural areas, which is essential for generational renewal; proposes, in this context, the inclusion of a specific indicator in future policies to monitor the rate of generational renewal and the level of services and infrastructure in rural areas;

11. Calls for EU programmes to prioritise projects that safeguard existing jobs in the agricultural sector and promote the creation of quality employment; stresses that all jobs in the agricultural sector must respect workers’ rights, provide stable and regulated pay, and ensure good working conditions; emphasises the importance of effectively combating poverty and social exclusion in rural areas;

12. Recalls the challenges that the agri-food sector has faced and is facing, such as the COVID-19 crisis, the harmful effects of the Russian invasion of Ukraine, natural disasters and rising input costs; regrets that direct payments and CAP subsidies have decreased significantly in real terms due to inflation, resulting in difficulties in implementing rural development measures, while the administrative burden on farmers has increased due to the accumulation of bureaucracy; calls on the Commission to allocate adequate resources to help farmers cope with those inflationary effects, including fuel costs, and underscores that the 2 % deflator of the current MFF does not compensate for the loss of value resulting from inflation; asks the Commission to provide a more flexible deflator in the next MFF and, furthermore, to work closely with the Member States to implement best practices at national and European levels to help farmers cope with inflation and record costs;

13. Requests that, following the repeated economic crises and extreme weather events caused by climate change that have affected agricultural companies, the unspent resources of the 2014-2022 rural development plans be spent by 31 December 2026 as a derogation from the N+3 rules laid down in Article 38 of Regulation (EU) No 1306/2013;

14. Welcomes the decision of the European Investment Bank to identify agriculture and the bio-economy as key priorities in its 2024-2027 Strategic Roadmap;

15. Expresses its concern about the adverse effects on the European agri-food sector of political instability in certain Member States and at global level, as well as of geopolitical tensions related to trade or international crises; underlines that the signing of the Mercosur Agreement in December 2024 will have implications for Union farmers and producers; invites the Commission to improve trade agreements to protect EU farmers, to ensure fair competition and a level playing field, and to allocate sufficient funds to mitigate the negative effects of trade agreements on the agricultural sector; recalls that European farmers may face unfair competition from third country producers who do not meet the same production standards as those in the EU and calls therefore for a proper level of reciprocity; reiterates the negative cascade effects of Russia’s war of aggression against Ukraine on global food security and farmers’ livelihoods; highlights the need to make sure that the reform of the Association Agreement between the EU and Ukraine provides stability and protection for EU farmers; highlights the need to start better preparation for an enlargement of the Union, taking account of European farmers’ interests, especially with regard to the adoption of balanced and enhanced measures to safeguard the European agricultural sector, while also ensuring support for Ukraine;

16. Calls on the Commission to encourage Member States to revise their national strategic plans, including the rapid use of funds from the European Agricultural Fund for Rural Development, and to provide funding to strengthen the relative negotiating positions of farmers in value chains, and for the Commission to swiftly approve these modifications;

17. Stresses the vital importance of the programme of options specifically relating to remoteness and insularity (POSEI) for maintaining agricultural activity in the outermost regions of Europe, for the provision of food and agricultural products there and for the food sovereignty of the EU as a whole; calls for the budget of the scheme, which has not been increased since 2013, to be increased to reflect the real needs of farmers in the outermost regions, as farmers in those areas are facing higher production costs; calls therefore on the Commission to apply without delay a 2 % deflator to the POSEI financial envelopes in order to mitigate the substantial losses for producers in real terms and ensure fairer support for all farmers;

18. Urges the Commission to ensure adequate resources for the implementation of an EU water management strategy and to continue developing water collection, storage and distribution activities, while preserving the status of water bodies, in order to render the use of water reserves more efficient in agriculture, both in crop irrigation and livestock farming, given that droughts are becoming increasingly severe across the Union.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted

18.2.2025

Result of final vote

+:

–:

0:

34

2

8

Members present for the final vote

Sergio Berlato, Stefano Bonaccini, Mireia Borrás Pabón, Daniel Buda, Waldemar Buda, Gheorghe Cârciu, Asger Christensen, Barry Cowen, Carmen Crespo Díaz, Ivan David, Valérie Deloge, Paulo Do Nascimento Cabral, Herbert Dorfmann, Carlo Fidanza, Luke Ming Flanagan, Maria Grapini, Cristina Guarda, Martin Häusling, Krzysztof Hetman, Céline Imart, Elsi Katainen, Stefan Köhler, Norbert Lins, Cristina Maestre, Dario Nardella, Maria Noichl, Gilles Pennelle, André Rodrigues, Katarína Roth Neveďalová, Bert-Jan Ruissen, Eric Sargiacomo, Christine Singer, Raffaele Stancanelli, Anna Strolenberg, Pekka Toveri, Jessika Van Leeuwen, Veronika Vrecionová, Thomas Waitz, Maria Walsh

Substitutes present for the final vote

Peter Agius, Benoit Cassart, Ton Diepeveen, Elisabetta Gualmini, Esther Herranz García

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

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