Temporary rules to bridge the gap from the current CAP to the new programme are set to take effect from 1 January 2021 as the approval process at EU level nears conclusion.

MEPs in the European Parliament voted overwhelmingly in favour of transitional regulations on Tuesday with 653 votes in favour to 19 against, with 22 abstentions. All that is now required is the green light from the European Council.

The next CAP had been due to start in 2021 but a drawn-out negotiation process means the latest reforms are not yet agreed.

Farm payments will instead operate under an “old rules, new money” principle until the end of 2022. This will see payments based on existing CAP structures using money from the new EU budget, minimising any disruption to farm supports while the negotiations are concluded.

While final formalities are yet to conclude, the legislative certainty has allowed the European Commission to sign-off on the extension of €630m worth of farm payments to Irish farmers.

The transitional rules will also allow the rollout of €8bn worth of aid to European farmers from the EU’s COVID-19 recovery fund. Irish farmers will receive €196m of this fund with €59m earmarked to be spent next year.