EU considers limiting farm subsidies for large holdings ahead of Ukraine’s accession

Ukraine could receive €10–12 billion annually in agricultural support after joining the European Union under the Common Agricultural Policy (CAP). At the same time, discussions are ongoing in Brussels on revising the subsidy allocation model ahead of the EU’s next enlargement. This was stated by Olha Avramenko, head of the UCAB on European Integration.

According to her, the potential scale of funding for Ukraine’s agricultural sector after accession is actively being debated within the EU. “There was a figure circulating in Brussels — €95 billion (while the entire annual EU farm subsidy budget is €55 billion, — ed.). Later in Hungary, even higher estimates were mentioned. During the election campaign, Orbán claimed that Ukraine would ‘drain €800 billion,’” Avramenko said.

However, experts involved in preparing the new CAP framework cite significantly lower estimates. In particular, Honorary Professor of European Agricultural Policy Alan Matthews assesses potential EU support for Ukraine at €10–12 billion per year.

She also noted that CAP payments are not directed primarily to the largest producers, but rather to farms complying with CAP requirements. Currently, farmers must meet nine conditions — six basic and three additional — to qualify.

Avramenko added that some proposals for CAP reform suggest the European Commission is already preparing for Ukraine’s accession. One of the ideas under discussion is introducing a cap on subsidies per farm.

“One of the proposals was to set a payment ceiling at €100,000. If the basic support is around €200 per hectare, then a farm of about 500 hectares would effectively reach that limit,” she explained.

Under such a model, larger farms would not receive more than €100,000, leading to a redistribution of funds toward a broader number of smaller farmers. However, the proposal remains controversial, with large agricultural holdings in eastern Germany opposing the cap. The European Commission, the European Parliament, and the Council of the EU are still negotiating the parameters of the new CAP for 2028–2034.

Tags: subsidies, EU