Fine Gael is looking for the next Common Agricultural Policy (CAP) to remain a standalone policy that supports active farmers, provides incentives for environmental schemes and supports generational renewal, with more simplified systems and payments indexed to inflation.

Fine Gael’s agriculture committee is launching its report for the next CAP this Thursday night at the Firgrove Hotel, Mitchelstown, Co Cork, which sets out the party’s key demands to be delivered under the next multiannual financial framework (MFF) by the European Union.

In forming the report, Fine Gael said it engaged with stakeholders from different farm organisations in Ireland since January 2026, including the IFA, the ICSA, the ICMSA, Macra and the INHFA.

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In the report, Fine Gael states that it believes Ireland must continue to use its influence at EU level to defend and strengthen agriculture in budgetary and policy negotiations, particularly during the Irish presidency of the European Council starting from July.

Ireland can do this by engaging in active discussions on the MFF and by building relationships with like-minded member states, according to the party.

Standalone policy

A central demand of Fine Gael’s report is for a standalone CAP, with the current two-pillar structure to remain in place as a cornerstone of EU policy.

Fine Gael is raising concerns surrounding the EU’s proposal of a single integrated framework under national and regional partnership plan, as it could create issues with governance and audit complexity, potential dilution of CAP’s clear rules and structures for farmers and it risks a reduction in direct farmer income supports.

Indexed CAP payments

The party believes CAP payments, schemes and grants should be indexed to national inflation, as it would prevent erosion of farm supports over the course of the next CAP and it would prevent farmers from carrying the burden of financial shocks.

Rising input costs - including fertiliser, feed, energy and labour - have significantly increased the cost base for all farmers in recent years, the report notes.

Enhanced crisis reserve mechanisms, improved risk management instruments and more timely market interventions should also be put in place in the next CAP, Fine Gael has said, in order for farmers to better cope with market volatility and uncertainty around input costs and produce prices.

Fine Gael also suggests that each CAP budget should set aside a set percentage of its overall budget to fund schemes of between 10 and 15 years in duration, to provide farmers with greater long-term financial certainty where suitable.

Incentivising environmental action

In terms of environmental ambition under the next CAP, Fine Gael is seeking for actions to be voluntary and fully funded, not only for direct implementation costs but also the additional labour, management time and compliance requirements associated with participation so that farmers are not financially penalised.

The party believes that if farmers are adequately incentivised for their actions, there will be more uptake of environmental schemes.

Generational renewal

Succession must be treated as an active process and should be supported by targeted measures for young farmers, new entrants and female farmers, while continuing to support older farmers in transitioning their businesses, the report details.

Additionally, the party is seeking for improved access to land through collaborative farming models and expanded and tailored access to finance and credit for young farmers.

Simplifying CAP delivery

Administrative complexity, disproportionate penalties and delayed payments damage confidence and discourage participation from farmers, the report details.

The party believes that bureaucracy should be reduced under the next CAP to encourage scheme uptake.

For example, Fine Gael proposes that a more proportional compliance system such as graduated penalties or 'yellow card' approaches should be introduced, as well as a single integrated digital platform for CAP and other agri schemes.

The party also states that timely payments and more certainty regarding payments must be a main focus to reduce financial uncertainty for farmers.

Negotiations

“As we prepare to enter a critical phase of the negotiations on the new EU budget, we must deliver a properly funded CAP that safeguards the long-term viability of European agriculture and rural communities,” European Parliament environment committee rapporteur and MEP Seán Kelly commented.

"This includes the important fight to maintain a standalone CAP that farmers across Europe know and rely upon.

“At the same time, we must deliver a CAP that properly rewards and incentivises farmers for the work they carry out every day, from producing high-quality food to delivering environmental and climate actions.

“We need to deliver both simplicity and viability, ensuring farmers are remunerated properly while avoiding needless bureaucracy and red tape,” he said.

“CAP is a cornerstone of the agriculture sector in Ireland. We need to use the upcoming EU presidency to show our farmers that we are listening to them,” chair of the Fine Gael agriculture committee Deputy Noel McCarthy stated.

“Delivering an indexed CAP would ensure that it remains effective throughout the lifetime of the next MFF. This has been called for across the EU, including by the Commissioner for Agriculture and Food - now we need to see action.

“Safeguarding funding for active farmers will continue to be a key focus for Ireland. We are a net contributor to the EU. This, along with the food security provided by our agriculture sector, should be acknowledged in the next CAP negotiations,” he said.