PAC 2026: Changes in POSEI Funds for the Canary Islands and Outermost Regions

Key data

Farmers and managing authorities in the Canary Islands, Azores, Madeira, French overseas departments and smaller Aegean islands have new control obligations as of 7 April 2026. The Commission Implementing Regulation (EU) 2026/769 amends two previous regulations to adjust the transfer of CAP funds to the POSEI program and update on-the-spot verification requirements applicable in these remote territories.

This is not a regulation of general impact for the Spanish agricultural sector: it affects exclusively the outermost territories recognized by the EU and the Aegean islands. But for those operating in those regions, compliance with the new controls is a necessary condition to continue receiving POSEI aid in 2026.

What does this regulation establish?

Commission Implementing Regulation (EU) 2026/769 introduces three specific changes to the previous regulation:

The POSEI program is the EU's specific instrument to support agriculture in territories remote from mainland Europe. Its objective is to compensate for the structural additional costs generated by remoteness, insularity and import dependency in these regions. The transfer of funds from the CAP rural development pillar to POSEI allows resources to be concentrated on the instruments best suited to these realities.

Economic and operational impact

The impact of this regulation is mainly operational and administrative management. The changes do not introduce new aid or eliminate existing ones, but rather adjust the financing channel (from CAP rural development to POSEI) and strengthen verification mechanisms.

The practical consequences are:

• For managing authorities: they must update their internal on-the-spot control procedures to adapt them to the new requirements established in both the POSEI scheme and the Aegean islands scheme. Failure to comply with these controls may compromise the justification of aid to the European Commission.
• For beneficiary farmers: they may be subject to field inspections with updated criteria. Proper documentation and compliance with POSEI aid conditions are more important than ever to avoid losing the right to payment.
• For program financial management: the transfer of funds from the CAP strategic plan to POSEI ensures that resources reach through the most appropriate instrument for these regions, improving management efficiency.

Who does it affect?

This regulation affects exclusively the following territories and actors:

• Canary Islands — Spanish outermost region included in the POSEI program
• Azores — Portuguese outermost region included in the POSEI program
• Madeira — Portuguese outermost region included in the POSEI program
• French overseas departments — French territories included in the POSEI program
• Smaller Aegean islands — covered by the special scheme of Regulation (EU) No 181/2014

The directly affected actors are:

• Farmers and agricultural holdings benefiting from POSEI aid in the above territories
• Managing authorities responsible for the administration and control of POSEI programs in each region
• Paying agencies responsible for justifying funds to the European Commission

Mainland Spain, the Balearic Islands and the rest of EU territory are not affected by this regulation.

Practical example

An agricultural cooperative in the Canary Islands that receives POSEI aid to compensate for additional costs of agricultural input supply must take the following into account for the 2026 financial year:

1. The funds financing its aid now come from the transfer from the CAP strategic plan for rural development, channeled through the POSEI program. The source of the money changes administratively, but the final beneficiary remains the farmer or cooperative.
2. The regional managing authority (in the case of the Canary Islands, the Government of the Canary Islands) must apply the new on-the-spot control requirements established by Regulation 2026/769. This may result in field inspections with updated criteria during the 2026 campaign.
3. If the cooperative does not successfully pass on-the-spot controls or fails to demonstrate compliance with aid conditions, it may jeopardize the payment of the POSEI subsidy corresponding to the 2026 financial year.

What should companies do now?

1. Verify if your activity is within the POSEI scope: confirm that the holding or managing entity operates in the Canary Islands, Azores, Madeira, French overseas departments or smaller Aegean islands and that it receives or manages POSEI aid.
2. Review on-the-spot control procedures: managing authorities must update their internal protocols to adapt them to the new requirements established in Regulation 2026/769, which amends Regulations (EU) No 180/2014 and No 181/2014.
3. Prepare justifying documentation for the 2026 financial year: beneficiary farmers must ensure they have all necessary documentation to demonstrate compliance with POSEI aid conditions in the event of field inspections.
4. Coordinate with the regional paying agency: contact the corresponding managing authority (Government of the Canary Islands, authorities of Azores, Madeira or French territories) to learn about the updated control criteria that will be applied in 2026.
5. Consult the complete regulation: access the official text of the Commission Implementing Regulation (EU) 2026/769 to know the exact details of the amendments introduced to Regulations 180/2014 and 181/2014.