From left to right: Krisztina Jobbágy, State Secretary, Ministry of Agriculture and Food of Hungary and Martine Hansen, Minister of Agriculture, Food and Viticulture Photo: SIP

From left to right: Krisztina Jobbágy, State Secretary, Ministry of Agriculture and Food of Hungary and Martine Hansen, Minister of Agriculture, Food and Viticulture Photo: SIP

The post-2027 common agricultural policy should give countries more room to support active farmers and value-creating holdings, Luxembourg has argued, while warning that lower milk prices and high input costs could deepen pressure on producers.

Agriculture, Food and Viticulture Minister Martine Hansen set out Luxembourg’s case for a more targeted and flexible EU farm policy at the Agriculture and Fisheries Council in Luxembourg on 22 and 23 June, as ministers began shaping the bloc’s post-2027 framework while dairy and input-cost pressures weighed on producers.

EU agriculture ministers used the meeting to discuss the future of the common agricultural policy, the situation on agricultural markets and the difficulties facing Ukraine’s farm sector. Luxembourg’s position is that the CAP after 2027 should retain common European goals while giving member states enough flexibility to tailor support to national farming conditions.

The government wants future aid to be directed more clearly towards active farmers and farms that create added value. Discussions held on 5 June with representatives from the agricultural, winegrowing and horticultural sectors concluded that Luxembourg should keep its current active-farmer system, with targeted adjustments where needed.

Support for young farmers remains part of Luxembourg’s position, alongside more flexibility for member states in applying some CAP mechanisms. The government also backed common EU objectives, a smooth transition between programming periods and national room for implementation.

Milk under pressure

Milk prices fell sharply during the first half of 2026, adding pressure to a sector already exposed to high input costs. The market has shown signs of gradual stabilisation, but the adjustment could still lead to significant restructuring, particularly for dairy farmers, who are among the most vulnerable producers in the supply chain.

Geopolitical tensions have continued to affect agriculture through energy and fertiliser prices. Luxembourg welcomed proposed European Commission support measures and pressed for quick implementation without excessive administrative burden for farmers.

The government also backed efforts to strengthen Europe’s agricultural autonomy, particularly on inputs, fertilisers, plant proteins and livestock.

Ukraine was also on the Council agenda, with Ukrainian Deputy Prime Minister Taras Kachka briefing ministers on the situation facing the country’s agricultural sector. Luxembourg reaffirmed its support for Ukraine, while maintaining that Europe’s sensitive agricultural sectors also need to be taken into account.