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EU Farmers Face Funding Dilemma as Defence and Ukraine Accession Loom

EU Farmers Face Funding Dilemma as Defence and Ukraine Accession Loom
Politics · 2026
Photo · Pierre Lefevre for European Pulse
By Pierre Lefevre Politics Correspondent Jul 8, 2026 4 min read

For two years, farmers across Europe have taken to the streets, frustrated by high operational costs, stringent environmental regulations, and trade deals they argue threaten their livelihoods. Now, as the European Union negotiates its next long-term budget and contemplates Ukraine's swift integration, the political shield that has long protected the agricultural sector is facing unprecedented strain.

In a recent episode of The Ring, Euronews' weekly debate programme, two Members of the European Parliament squared off on how the bloc can continue to support farmers in an increasingly complex geopolitical landscape. Ciaran Mulloly of the Renew Europe group and Pekka Toveri of the European People's Party (EPP) represented divergent views on the future of the Common Agricultural Policy (CAP), which currently consumes roughly 30% of the entire EU budget.

Subsidies vs. Security

Mulloly argued that the current level of subsidies must remain untouched in the next Multiannual Financial Framework, now being hammered out among EU capitals. “I'm opposed, full stop, to reduction in our subsidies or in our single farm payments,” he declared. Toveri, however, pointed to the security threat posed by Russia, particularly from his native Finland’s perspective. “We understand the importance of food security and agriculture. But on the other hand, we also know the threat of Russia, which is not only the eastern border,” Toveri said. “And therefore we need to be stronger in security and defence. And that means everybody has to pitch in, including agriculture.”

The debate comes as EU leaders grapple with how to finance both defence modernisation and the bloc’s green transition, while also preparing for potential enlargement. The tension between these priorities is likely to intensify as negotiations over the next budget proceed.

Ukraine’s Agricultural Giant

A central flashpoint is Ukraine’s push for EU membership. With roughly 40 million hectares of agricultural land—an area larger than Italy—Ukraine would become a dominant player in European cereal production, accounting for an estimated 20% of the bloc’s total. Mulloly warned that accommodating Kyiv cannot come at the expense of existing farmers. “That doesn't mean I don't understand the invitation to Ukraine to come aboard. That doesn't mean I don't understand the contribution that Ukraine's farmers can make to Europe. But you have to remember that in full production, the output from Ukraine would amount to both France and Italy put together,” he said.

Toveri agreed that a unique solution is needed. “Ukraine is a unique country, and we have to find a unique solution for it,” he said, hinting at possible transitional arrangements or caps on subsidies for new members. The EU has already faced backlash from farmers in Poland, Hungary, and Slovakia over Ukrainian grain imports, underscoring the sensitivity of the issue. For more on the broader enlargement debate, see our analysis: EU Enlargement Reform: Brussels Seeks to Regain Control as Member States Drive Debate.

Climate, Custodians, and an Ageing Workforce

Both MEPs acknowledged the challenges posed by climate change, but they pushed back against the narrative that farmers are environmental villains. Toveri, referring to Finnish farmers, said: “They've lived there for centuries, they know the nature, the Finns love nature! They don't want to destroy anything just for farming.” Mulloly echoed this sentiment, describing farmers as “the custodians of the environment. For generations, my family and others have defended the environment. We played our part in the environmental schemes.”

The two also raised alarm about the high average age of farmers across the EU, warning that the sector risks a demographic crisis. Mulloly called for a larger EU farming budget that would “let farmers retire and bring in young farmers.” Without such incentives, he argued, the continent’s agricultural future is uncertain.

As the EU pivots toward defence and global trade, the question remains whether the political shield for farmers can hold. The debate in The Ring highlighted deep divisions, but also a shared recognition that agriculture is too vital to be left behind. For a related discussion on how security concerns are reshaping EU priorities, see: Germany Debates Revoking Temporary Protection for Military-Age Ukrainian Men.

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