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12° Nicosia,
03 May, 2026
 
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€454m CAP plan and new funding calls target young farmers and rural development

Desalination expansion and water infrastructure projects aim to secure supply for agriculture and households.

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Cyprus is rolling out a mix of funding programs, infrastructure projects, and market reforms aimed at strengthening rural communities and supporting farmers, according to Maria Panayiotou, the country’s Minister of Agriculture, Rural Development and Environment, who outlined the plans during remarks at the revival of the Famagusta Orange Festival.

At the core of the strategy is the 2023–2027 Strategic Plan under the EU’s Common Agricultural Policy, backed by €454 million. The plan focuses on improving farm income, boosting productivity, and encouraging more sustainable practices.

Several funding opportunities are currently open. A €60 million investment scheme targets agricultural development, while a separate €7.5 million program is designed to help young farmers establish themselves. The application deadline for both is May 29, 2026.

Support is also being directed into local economies through the LEADER program, which finances community-led development projects. In the Larnaca and Famagusta districts, €3 million has been allocated for regional initiatives. Current calls include €650,000 for agritourism businesses such as small accommodations and dining spaces, as well as €100,000 for cultural activities that promote local heritage and expertise.

Beyond funding, the government is trying to improve how agricultural markets function. One approach is encouraging the creation of producer groups so farmers can negotiate better prices and rely less on intermediaries. In Famagusta, three fruit and vegetable producer organizations are already operating, with another in the process of being approved. A digital platform, “e-Kofini,” has also been introduced to improve price transparency across the supply chain, alongside enforcement of rules targeting unfair trading practices.

Water supply remains a major concern due to ongoing dry conditions. Cyprus has expanded its desalination capacity, increasing the number of plants in operation from five to eight since 2023, with another expected soon. The aim is to reduce dependence on rainfall and stabilize water availability for both households and agriculture.

A new permanent desalination plant is planned for the Ayia Napa–Ayia Thekla area, with an initial capacity of 30,000 cubic meters per day and the option to expand to 40,000. Other infrastructure projects, including the Kokkinokremmos system, are intended to improve water distribution reliability across municipalities, rural communities, and tourist areas.

Efforts are also underway to reduce water losses in supply networks. In Famagusta, €2.3 million has been allocated for repairs in Paralimni, Deryneia, and Ayia Napa under the “THALEIA 2021–2027” program.

Environmental measures are progressing in parallel. The expansion of Green Points, facilities aimed at improving recycling and waste management, is ongoing. Sites have already been completed in Avgorou and Ayia Napa, while additional locations in Sotira and Deryneia are expected to be finished later in 2026.

At the European level, recent changes to agricultural market rules are expected to benefit Cyprus’s largely small-scale and family-run farming sector by improving income stability, strengthening collective bargaining, and increasing the value of local products.

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