CAP Aid 2026-2027 for the Middle East Crisis: What Changes for Farmers and Livestock Breeders

Key data

European farmers and livestock breeders who have seen fertilizer costs skyrocket due to the Middle East conflict now have concrete regulatory support. The Regulation (EU) 2026/1768, published on 21 July 2026 in the EU Official Journal, modifies two pillars of the Common Agricultural Policy to provide an urgent response to this situation.

This is not a statement of intent: the regulation introduces direct operational changes to Regulation (EU) 2021/2115 —which regulates CAP strategic plans and the Eafrd— and to Regulation (EU) 2021/2116 —which regulates CAP financing, management and monitoring—. Both modifications have immediate consequences for agricultural holdings, paying agencies and regional administrations managing European funds.

What does this regulation establish?

Regulation (EU) 2026/1768 introduces three concrete changes to the CAP framework:

The context is clear: the Middle East conflict has significantly increased fertilizer costs, a critical input for the profitability of any agricultural holding. The EU responds with a package of measures that combines short-term liquidity injection (more flexible advances) with structural aid channeled through the Eafrd and budgetary margin for Member States in 2027.

Economic and operational impact

The three measures have distinct but complementary economic effects for the primary sector:

• More flexible CAP advances: Paying agencies will be able to advance funds under more favorable conditions, reducing the period in which holdings must finance their operating costs with their own resources or bank credit. This is especially relevant in campaigns where fertilizer costs have skyrocketed before ordinary payments arrive.
• Temporary exceptional aid via Eafrd: A specific aid channel is enabled within rural development. Member States will be able to design concrete interventions for their farmers, adapted to the reality of each territory, within the Eafrd framework.
• Flexibility in direct payments 2027: Member States will be able to redistribute or adapt direct payment allocations for the natural year 2027. This allows adjusting the distribution of funds based on the actual impact of the crisis in each country or region.

The most immediate operational impact is the improvement of holdings' cash flow: less time waiting for payments, less need for external financing to cover input costs. In the medium term, Eafrd aid can translate into direct subsidies or specific support depending on what each Member State decides to implement.

Who does it affect?

• Farmers who use fertilizers and have seen their production costs increase due to the Middle East crisis.
• Livestock breeders who depend on forage crops or rising agricultural inputs.
• CAP paying agencies in each Member State, which will need to adapt their advance payment and aid management procedures.
• Regional and national administrations responsible for CAP strategic plans and Eafrd management.
• Agricultural cooperatives and producer organizations that act as intermediaries in channeling aid.
• Agricultural advisors and managers who process CAP aid applications for their clients.

Practical example

Imagine a cereal farm in Castilla y León that in the 2025-2026 campaign has seen the cost of its nitrogen fertilizers increase significantly due to price increases resulting from the Middle East conflict. Historically, this holding waited until the last quarter of the year to receive CAP direct payments, financing its input purchases with bank credit in the meantime.

With Regulation (EU) 2026/1768 in force, the paying agency of the regional administration can apply the new flexible advance rules and advance part of the CAP payments earlier than usual. This directly reduces the holding's financing cost during months of greatest cash flow tension. Additionally, if Spain activates the Eafrd intervention provided for in the regulation, the farmer could access a temporary exceptional aid specifically designed to compensate for the additional fertilizer costs, processed through the national CAP strategic plan.

For the year 2027, if the Member State decides to adapt direct payment allocations in accordance with the new flexibility, the holding could see its direct payment amount or distribution adjusted based on the criteria established by the national administration.

What should farmers and livestock breeders do now?

1. Contact your regional paying agency to find out if the new CAP advance procedures have already been activated and what timelines you can request them in.
2. Consult with your agricultural advisor or CAP manager to see if your holding can benefit from the temporary exceptional Eafrd aid enabled by this regulation, once the Member State specifies its implementation.
3. Document the impact of fertilizer price increases on your holding: invoices, price comparatives, volumes consumed. This documentation may be necessary to justify access to exceptional aid.
4. Follow closely the communications from MAPA (Ministry of Agriculture, Fisheries and Food) and your regional administration regarding the adaptation of CAP strategic plans for 2027 and the activation of Eafrd measures.
5. Review your cash flow plan for the 2026-2027 campaign taking into account the possibility of earlier advances, and adjust your bank financing needs accordingly.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601768