New CAP and EU budget plan undermines food security and sustainability

The European Commission's proposal to fold the Common Agricultural Policy (CAP) into a new cross-sectoral fund risks weakening one of the EU's most important strategic policies.

This matters far beyond farms. Europe's food and drink manufacturers - who buy 70% of EU agricultural output - depend on a stable, predictable CAP to deliver food security, competitiveness, and sustainability together.

The proposal includes a ring-fenced €302 billion envelope for farmers. While this provides a degree of stability, it marks a significant decrease from the current CAP budget (€386.6 billion). Member States are expected to provide additional national contributions, which risks creating unequal levels of support across the EU.

Removing the CAP's standalone budget and governance would reduce visibility, fragment planning, and open the door to a patchwork of national priorities. This could re-nationalise EU farming policy, distort the Single Market, and make long-term investment harder - just when a resilient and sustainable food system is most needed.

The Commission's Strategic Dialogue on the Future of Agriculture, conducted last year, was clear that the CAP alone cannot fund the green transition. We urgently need complementary EU-level tools including a dedicated agri-food transition fund and a nature restoration fund to mobilise the estimated €28-35 billion needed to help farmers deliver on sustainability targets. Payments should be outcome based and include harmonised sustainability metrics to ensure a fair and consistent approach across the EU. Greater encouragement for value chain collaboration and long-term contracts would further enhance these goals.

Beyond agriculture reform, Europe's 300,000 food and drink SMEs need specific support and better access to finance through the MFF. These companies are foundational to the EU's growth, yet figures show a financing gap of at least €5.5 billion in unmet loan demands.

FoodDrinkEurope has called for a holistic plan for a competitive and sustainable sector, with more detailed asks in its Action Project.