Although the current framework of the Common Agricultural Policy (CAP) is valid until 2027, debates regarding the future European budget have already begun. According to the European Commission and OECD reports, pressure on the EU budget is increasing amid new priorities—defense, energy transition, and industrial competitiveness.

For Romania, agricultural subsidies represent an essential component of farm income. Eurostat data show that direct payments contribute significantly to financial stability, especially in crop farms. Any potential reduction or redistribution of funds would have a direct impact on profitability.

Another risk is the tightening of environmental conditionalities. Recent European documents indicate a clear orientation toward sustainable practices, reduced input use, and stricter climate targets. From an economic perspective, these requirements involve additional investments and possible short-term declines in production.

For 2026, farms need to begin evaluating scenarios without additional increases in subsidies. The high dependence on public support amplifies vulnerability to political and budgetary changes.

(Photo: AI GENERATED)