Before joining the European Union, Ireland was almost entirely economically dependent on farming, but the country now has a more diverse, open economy.
Despite this shift, agriculture remains both economically vital and culturally significant in Irish life. However, the sector faces increasing pressures from volatile market prices, an ageing farming population, and rural decline.
Global events, such as Russia’s ongoing war in Ukraine, climate change, rising food insecurity and Brexit, also directly impact Irish farming and rural communities.
The Common Agricultural Policy (CAP) plays a crucial role in helping Ireland, and other EU Member States, to address both global and local issues by providing a mutually agreed framework to find common solutions to these problems.
EU agricultural policy focus
First introduced in 1962, the Common Agricultural Policy (CAP) is a shared EU policy that is updated regularly to ensure farmers earn fair incomes, consumers enjoy safe food, and evolving challenges like climate change are addressed.
The CAP has two pillars, funded through main EU budget sources:
- European Agricultural Guarantee Fund (EAGF) – Supports direct payments to farmers and helps manage market stability.
- European Agricultural Fund for Rural Development (EAFRD) – funds programmes for agriculture, forestry, and environmental projects in rural areas.
E ach Member State manages its own funds and can transfer up to 25% of its allocation between EAGF and EAFRD to respond to national needs.
The current CAP (2023–27) is guided by ten goals that align with broader EU aims, including Green Deal and Digital Transition targets. Its total public funding is about €307 billion, of which €264 billion comes from the EU budget and the remainder from national contributions.
E ach Member State manages its own funds and can transfer up to 25% of its allocation between EAGF and EAFRD to respond to national needs.
The current CAP (2023–27) is guided by ten goals that align with broader EU aims, including Green Deal and Digital Transition targets. Its total public funding is about €307 billion, of which €264 billion comes from the EU budget and the remainder from national contributions.
“We also need to strengthen the position of farmers in the food chain. For too long their hard work has not paid off as it should. Farmers have a right to a fair price for their food - and a fair profit for their families.”
President Ursula von der Leyen, State of the Union address 2025
That proposal was adopted later in 2024, leading to updated rules. Building on this, the Commission subsequently put forward the 2025 CAP Simplification and Competitiveness Package, which includes over 20 measures designed to further reduce paperwork, simplify the system, and better reflect the diverse needs of farmers across Europe.
Key actions in the package include:
- Reducing red tape and cutting administrative costs.
- Making financial support more responsive during crises.
- Allowing easier adjustments to national CAP plans.
- Focusing support on farmers committed to sustainable and productive farming.
- Enhancing tools and incentives to boost farmers’ competitiveness and innovation.
Despite these efforts, the Commission acknowledges that more needs to be done to continue improving agricultural policies and practices for farmers and consumers throughout the EU.
Vision for agriculture and food
In February 2025, the European Commission presented an ambitious roadmap on the future of farming and food in Europe.
The Vision for Agriculture and Food paves the way for a strong, fair, and sustainable agri-food system that benefits farmers and food producers now and in the future. It was shaped through meetings with farmers, cooperatives, food businesses, and rural communities.
The European Board on Agriculture and Food (EBAF) was established to support the project. This high-level advisory group brings together representatives from the farming community, the food supply chain, and civil society to offer strategic advice to the Commission on policy developments under the Vision.
The Vision outlines four priority areas:
- Making farming attractive: Farmers need stability, fair incomes, and support for new ideas like carbon farming. The EU will work to prevent farmers from selling their products below cost and help new farmers to get started.
- Building competitiveness and resilience: The EU aims to ensure food security and strong farmers' positions, including fair trade rules and high food safety standards.
- Preparing for the future: Farming will play a crucial role in a low-carbon economy. Farmers will be rewarded for nature-friendly practices and given new tools to measure and improve sustainability. Water use will also be a priority.
- Fair living and working conditions: Keeping rural areas vibrant means updating support plans, starting a yearly Food Dialogue to discuss affordability and innovation, and focusing on reducing food waste and improving animal welfare.
In September 2025, organic farming, zero waste, and the circular economy took centre stage at the Irish Representation’s EU tent at the National Ploughing Championships. Under the theme ‘Go Circular, Grow Organic’ stories from Ireland’s organic farmers were showcased and information provided on EU supports for sustainable agriculture. Interactive activities such as zero-waste cooking and a pedal-powered smoothie bike were also featured. The initiative reflected the EU Vision’s commitment to sustainable, innovative farming rooted in Ireland’s agricultural traditions..
Vision for Agriculture and Food
Ireland’s CAP Strategic Plan
Ireland’s CAP Strategic Plan has a budget of just under €10 billion for the 2023-27 period, with about 60% allocated to direct income support and 40% to sectoral support and rural development measures.
Nearly €7.5 billion comes from the EU budget, including around €3 billion reserved for specific climate-related goals such as eco-schemes, biodiversity initiatives on farms, and rural development projects.
Under CAP rules, Strategic Plans can be amended to respond to changing environmental and economic priorities or feedback from farmers and other stakeholders. Ireland’s plan has been amended several times to strengthen support for young farmers, boost biodiversity funding, and increase flexibility in responding to challenges such as extreme weather.
The Irish Strategic Plan aims to reduce the income gap between farming and other economic sectors. Over €590 million is allocated to promoting a fairer distribution of support, particularly targeting small and medium-sized farms.
The CAP encourages young people to enter farming, with almost €178 million earmarked for additional income support for young Irish farmers. Currently less than 7% of Irish farmers are under the age of 35. The CAP aims to boost that figure and help new generations of farmers with measures such as:
- Increased mentoring and knowledge transfer
- More flexibility on taxation and inheritance rules
- Easier access to loans with lower interest rates and longer repayment periods.
- Young Farmer Capital Investment Scheme (YFCIS) for capital investments in farm infrastructure and equipment.
- In October 2025, the Commission proposed a Strategy for Generational Renewal in Agriculture that sets out a roadmap to support young farmers and attract more people to farming.
Ireland faces significant challenges in meeting EU environmental and climate goals. The Strategic Plan dedicates over €1.5 billion to the Agri-Climate Rural Environment Scheme (ACRES) to support 50,000 farmers with targeted actions to enhance biodiversity and improve air and water quality.
The Targeted Agriculture Modernisation Schemes (TAMS III) provide grant aid for on-farm capital investments in new technology, infrastructure like low-emission slurry spreading equipment and solar panels, and farm safety, all of which contribute to environmental and animal welfare objectives.
Wetlands and peatlands are better protected under the plan, with the use of all types of fertilisers and plant protection products restricted in buffer zones along watercourses.
More than €250 million is being invested to triple Ireland’s organic farmland area, while €35 million is allocated for protein crop bonuses for peas, beans, lupins, and soya, helping reduce reliance on imported feed and strengthening farm competitiveness.
Young Farmer Capital Investment Scheme (YFCIS)
Rural development
Preservation of Ireland’s famously beautiful countryside is supported by the rural development pillar of the national CAP strategic plan.
The plan is implemented through the European Agricultural Fund for Rural Development (EAFRD), with complementary funding from EU funding tools such as the Recovery and Resilience Facility (RRF) and the European Structural and Investment Funds (ESIF) also available.
A priority for rural development in Ireland is sustainable growth, particularly in restoring, preserving, and enhancing ecosystems linked to agriculture, such as boglands and forests.
The CAP 2023-27 prioritises objectives such as climate resilience, resource efficiency, and low-carbon agriculture to align with EU environmental targets.
LEADER is the mechanism that delivers development to local rural communities and it is administered by Local Action Groups (LAGs), which are partnerships of public and private entities that manage project selection and approval locally.
LEADER in Ireland has a total financial allocation of €180 million, distributed across 29 local action groups, reaching more than 80% of Ireland’s rural population. Funds are directed toward projects that protect the environment and enhance rural development, particularly in employment, tourism, infrastructure, and social inclusion.
Ireland’s rural development efforts under CAP are complemented by the national policy Our Rural Future, which provides a broader framework for sustainable rural wellbeing and community development across the country.
The European Commission has set out a long-term vision for the EU’s rural areas up to 2040 and is actively implementing a Rural Pact and an EU Rural Action Plan. These initiatives focus on improving digital access, strengthening economic and climate resilience, and promoting targeted efforts to encourage young people to remain and thrive in rural areas.
Innovation for sustainable agriculture
The Horizon Europe programme supports investment in the future of farming and rural development by funding research and innovation across food systems, sustainability, and the bioeconomy. Ireland has secured over €1 billion in Horizon Europe funding, achieving significant success in these sectors.
Ireland’s national agency for agricultural research, advisory, and education, Teagasc, has led several impactful Horizon Europe projects, including:
- Step-Up: Analysing the environmental and economic impact of livestock systems.
- SafeHabitus: Improving farm health and safety.
- RefreSCAR: Linking bioeconomy research across Europe.
- MASTER: A €11 million project using microbiome science to improve food quality and cut methane emissions.
The European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-AGRI) helps ensure research meets farmers’ needs. It now operates through the EU CAP Network, which connects people and ideas across Europe.
The Agricultural and Rural Inspiration Awards (ARIA) showcase innovation and sustainability in European farming and rural development. Together with the EIP-AGRI Innovation Awards, they recognise outstanding CAP-funded projects, reflecting Ireland’s active role in EU agricultural innovation.
In 2024, an Irish Operational Group won an EIP-AGRI Innovation Award while two others were shortlisted as nominees. In 2025, another Irish project was shortlisted for the Environmental Protection ARIA award:
- Illaun Farm-Forest Alliance: Winner of the 2024 EIP-AGRI Sustainable Forest Management Award.
- Sustainable Uplands Agri-environment Scheme (SUAS): Nominated for an EIP-AGRI award in 2024 for improving upland habitats in the Wicklow and Dublin Mountains.
- Biodiversity Regeneration in a Dairying Environment (BRIDE): Nominated for an EIP-AGRI award for reducing biodiversity loss in the Bride Valley.
- Create Green business training: Shortlisted for a 2025 ARIA Environmental Protection award for helping Irish food and farming start-ups grow sustainably.
EU strategies for food and biodiversity
The European Commission has adopted two key strategies to align the CAP with the ambitious goals of the European Green Deal. These strategies aim to transform European food systems and promote environmental sustainability.
- The Farm to Fork Strategy: This consumer-focused strategy seeks to create a fair, healthy, and environmentally-friendly food system across Europe. It outlines concrete targets, such as a 50% reduction in the use and risk of chemical pesticides, a 20% decrease in fertiliser use, a 25% increase in organic farming land, and a 50% reduction in antimicrobials used in farm animals. The CAP plays a central role in achieving these goals through eco-schemes and support for sustainable farming practices. While implementation is ongoing, progress has been uneven and discussions continue on how to make its targets binding.
- The Biodiversity Strategy for 2030: This strategy tackles the root causes of biodiversity loss, including unsustainable land use, overexploitation of natural resources, pollution and invasive species. It proposes actions such as restoring degraded ecosystems, bringing back pollinators to farmland, expanding organic and biodiversity-friendly farming, and protecting at least 30% of EU land and sea areas. Its objectives are supported by the new EU Nature Restoration Law, adopted in 2024, which introduces binding targets for ecosystem restoration.
Support during times of crisis
The European Commission has legal tools that allow rapid responses when the agricultural sector faces disruption. Between 2014 and 2023, it adopted 63 exceptional measures to support farmers during crises such as the Covid-19 pandemic and Russia’s invasion of Ukraine, mobilising nearly €2.5 billion in EU funds.
Under the 2023–27 CAP, a dedicated crisis reserve of at least €450 million per year can be activated swiftly to provide emergency aid. In 2023, Ireland received €9.5 million from a €330 million EU package for countries hit by extreme weather and high input costs. In 2024, the Commission approved a €32.5 million Irish scheme for tillage and horticulture producers affected by Russia’s war on Ukraine.
In 2025, Ireland triggered the EU Civil Protection Mechanism after Storm Éowyn caused severe power outages, leading to the deployment of 13 generators from the EU’s rescEU reserve in Poland and four more from Denmark.
To strengthen resilience, the Commission also established the European Food Security Crisis Preparedness and Response Mechanism (EFSCM), which monitors risks to the EU food supply chain and coordinates action during major disruptions.
Agricultural Market measures explained
Gender equality in agriculture
The Common Agricultural Policy (CAP) includes a specific objective to promote women's participation in farming. Member States are required to assess the situation of women in farming and rural areas and address challenges in their CAP strategic plans.
Ireland's CAP Strategic Plan includes support for female-focused knowledge transfer groups, facilitating peer-to-peer learning and in 2024, the Department of Agriculture, Food and the Marine (DAFM), launched a National Women in Agriculture Action Plan.
Under the Targeted Agriculture Modernisation Schemes (TAMS), women can receive increased grant aid rates to invest in and modernise their farming operations.
The European Commission Representation in Ireland and the DAFM celebrated women's key role in agriculture ahead of International Women’s Day in March 2025. The event provided an opportunity for farmers, experts, and policy makers to debate and exchange views and innovative ideas on women’s crucial role in the Irish farming sector.
The Irish Representation also ran an information campaign called ‘Women Step Into Farming’ on social media with videos that aimed to inspire more women to pursue careers in agriculture, while also promoting a more sustainable and innovative approach to farming.
Latest agriculture news
This year, the EU tent at Ploughing is connecting visitors of all ages with the principles of organic farming, zero waste, and the circular economy in action.
To simplify the Common Agricultural Policy (CAP) and boost farmers' competitiveness, the European Commission unveiled a large package of measures targeting the administrative burden, controls, implementation, crisis response and investment needs of the sector.
To celebrate the contribution of Irish women to farming and agriculture and to mark International Women’s Day, the European Commission Representation in Ireland will hold a discussion on WOMEN STEP INTO FARMING on 4 March.