The European Union’s planned agricultural reform could have a significantly greater impact on agriculture in eastern Germany than in many other regions of Europe. This is the warning issued by a study conducted by the Leibniz Institute for Agricultural Development in Transition Economies (IAMO) and the University of Rostock. The main reason is the prevalence of large agricultural operations in eastern Germany, which, under the European Commission’s plans, would have to expect lower direct payments.
The European Commission intends to reform the Common Agricultural Policy (CAP) for the funding period from 2028 to 2034. Among other things, the plan calls for reducing area-based direct payments to larger farms and redistributing them more heavily in favor of smaller farms. At the same time, member states are to be given more leeway in designing the support programs.