Are Europe’s farmers the big losers under the EU Commission’s new long-term budget proposal for 2028 to 2034, unveiled on 16 July? Early reactions from farmers’ associations described it as a dark day for agriculture, citing a potential 22% cut in funding.
However, Luxembourg’s EU Agriculture Commissioner, Christophe Hansen, pushed back against this notion in an interview with RTL, arguing that the situation is more nuanced and should not be reduced to headline figures.
While it is true that the proposed €300 billion over seven years is around 22% less than the current and previous agricultural budgets, Hansen urged a closer look at the full picture. He explained that the €300 billion represents an “absolute minimum” – a guaranteed minimum – what he called a “ring-fenced” amount, protected like a fenced-off field.
On top of this base figure come other support mechanisms, such as funding for rural infrastructure – like field paths – or healthy food in school canteens, Hansen explained. Crucially, over €200 billion more would be available for projects and reforms funded through national and regional plans, he stated.
Hansen further noted that these additional funds could be allocated by member states according to their own priorities.
The EU commissioner also argued that the new Common Agricultural Policy (CAP) aims to be more equitable. He explained that under the proposed system, subsidies for large-scale farms would gradually decrease for their final hectares of land, with the redirected funds going instead to support small-scale and young farmers.
To strengthen support for young farmers, Hansen announced plans to introduce a new initiative in the autumn: a kind of “starter kit”.
As an example of the challenges facing rural families, he recalled a conversation with a Swedish dairy farmer who had told him she was forced to choose between raising cows or having children, due to a lack of childcare facilities in her region. Hansen said this underlined the need to invest in rural services across Europe.
The commissioner also highlighted three other key proposals for the next CAP.
First, agricultural subsidies would be indexed to inflation whenever it rises above 3%. Second, the EU’s crisis reserve fund, which is used to mitigate ecological or commercial shocks, would be doubled to €900 million per year. And third, member states would gain greater flexibility in linking EU support to national measures, according to Hansen.
As he explained, this would allow countries to promote strategic sectors – such as protein crops – to reduce dependence on imports from Latin America and elsewhere, or to support livestock farming, which is in decline in many regions.
Turning to trade, Hansen defended the EU’s proposed Mercosur agreement with Argentina, Brazil, Uruguay, and Paraguay. He said the EU tends to have more difficulties with countries it does not have trade deals with than with those it does.
For sensitive sectors like beef, poultry, and sugar, he stressed that import quotas would remain in place for seven years and would not be eliminated entirely. In the event of serious market disruption, safeguard mechanisms could be triggered to pause imports, he explained.
Hansen maintained that trade agreements help bring clarity by setting enforceable rules.
Hansen acknowledged that tough negotiations lie ahead over the next two years as member states and the European Parliament work to finalise the 2028–2034 multi-annual budget. As someone who previously served as an MEP and is now part of the European Commission, he remarked that it would be much easier if MEPs told their national governments to contribute more to the EU budget.
From his perspective, the EU needs more financial resources. He pointed out that the US federal government manages a budget equivalent to 23% of GDP, while the EU’s budget is just under 1%.
He also recognised that the Commission’s proposals for raising new revenue – such as EU-wide levies on tobacco, entry fees for non-EU travellers, or a corporate tax – will likely face resistance. Nonetheless, Hansen expressed hope that meaningful progress could be achieved in talks with member states.
