On 6 July 2026, the Council of the European Union adopted a regulation amending EU agricultural funding rules to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) and allow adjustments to direct payments allocations for 2027, alongside more flexible rules on advance payments in response to increased fertiliser prices due to the Middle East crisis. The legislative act, published as an 'I' item note, also includes a decision to derogate from the eight-week period for national Parliaments under Article 4 of Protocol 1.
The regulation amends Regulation (EU) 2021/2115 to introduce a specific type of intervention for exceptional temporary support under the EAFRD, enabling Member States to provide direct financial relief to farmers facing higher fertiliser costs. It also allows adaptation of direct payments allocations for calendar year 2027, giving Member States flexibility to reallocate funds as needed. Additionally, it amends Regulation (EU) 2021/2116 to provide more flexible rules on payment of advances, improving cash flow for agricultural operations during the crisis.
Slovakia requested that a statement be entered in the Council minutes, expressing its view that the Commission should adopt implementing rules allowing Member States to decide on the percentage of advance payments, up to the maximum set in the regulation. This request could influence future Commission implementing rules.
The regulation provides immediate financial relief to farmers, particularly those in sectors most affected by rising fertiliser costs, such as arable and livestock farming. It enhances flexibility for Member States in managing advance payments, potentially improving liquidity for agricultural businesses. However, the temporary nature of the support and the need for Member States to adapt their national strategic plans may create administrative burdens. The decision to derogate from the eight-week period for national Parliaments expedites the legislative process, reducing scrutiny time.
The regulation is expected to enter into force shortly after publication in the Official Journal of the European Union. Member States will need to update their CAP strategic plans to implement the new intervention type, with the Commission likely to issue guidance on the implementing rules for advance payments.