Panayiotis Rougalas
The Cypriot government has rolled out a €60 million investment plan designed to boost the competitiveness and sustainability of the country’s agricultural sector. The New CAP Investment Strategic Plan, also known as the "Big Investment Plan," is the government’s primary tool for strengthening the primary sector, especially as climate change presents new challenges.
The plan focuses on modernizing farms, improving crop protection infrastructure, embracing smart farming technologies, and enhancing greenhouse operations. A major innovation in the plan is the simplification of licensing procedures, making it easier for farmers to invest and expand.
Engaging with Farmers
Agriculture Minister Maria Panagiotou presented the plan, kicking off a consultation period with farmers and agricultural professionals that will run until February 28. The feedback gathered will help fine-tune the plan before final approvals in the first half of the year.
“From the very beginning, we recognized that our financial tools must be targeted, effective, and responsive to the real needs of farmers,” Panagiotou said, emphasizing that this plan is the key to modernizing Cyprus’ agricultural sector.
Bigger Investments, More Support
The plan includes three major funding categories:
- Modernization & Competitiveness Upgrades (Intervention 4.1.1)
- Environmental Protection & Animal Welfare Improvements (Intervention 4.1.2)
- Animal Waste Management Solutions (Intervention 4.1.3)
The maximum grant amounts have been significantly increased:
- Farmers can apply for up to €400,000 in funding, or €600,000 if they are young farmers.
- Animal waste management projects can now receive up to €800,000, double the previous cap of €400,000.
- Special support is available for pig farms relocating under the demolition plan, with aid reaching €1.5 million.
- Environmental projects will receive up to 80% funding, similar to previous smaller-scale investment programs.
Additionally, €7.5 million is earmarked for new farmers, with €3 million allocated specifically for sheep and goat farming. The grants range from €20,000 to €50,000, reflecting the government’s effort to attract younger generations to agriculture.
10 Key Investment Priorities
The €60 million budget will be divided among 10 priority areas, targeting renewable energy, crop protection, smart irrigation, and industry-specific modernization. Some highlights include:
- €6 million for renewable energy and energy-saving measures for professional farmers.
- €3 million for crop protection infrastructure, including hail and rain protection systems.
- €29.5 million to modernize sheep and goat farms, which play a crucial role in producing PDO Halloumi.
- €3 million to improve cereal and fodder production.
- €6 million for greenhouse farming of vegetables and aromatic plants.
- €5 million for cow farms, including waste processing improvements.
- €2 million for viticulture and fruit farming.
- €1.5 million to support smart irrigation projects.
Faster Licensing for Agricultural Projects
One of the biggest improvements in the plan is the simplification of licensing procedures for agricultural and livestock-related construction. The Ministry of Agriculture has worked closely with the Ministry of Interior, Urban Planning Department, and other agencies to streamline approvals, significantly reducing delays for farmers looking to expand or modernize their operations.
The Ministry has already rolled out a "Small Investment Plan", initially budgeted at €10 million but expanded to €13 million, mobilizing a total investment of €20 million.
Part of a Broader Agricultural Strategy
This investment plan aligns with Cyprus' wider agricultural strategy, approved by the Council of Ministers in October 2024. The strategy includes 11 key actions worth €109.3 million, prioritizing professional farmers for the first time.
The ultimate goal is to increase agriculture’s contribution to the economy, which currently stands at just 1.3% of GDP (€369 million in 2023). The broader Common Agricultural Policy (CAP) Strategic Plan for 2023-2027, which was approved by the European Commission, will channel €454 million into Cyprus’ agriculture sector, with €373 million coming from EU funds.
A Boost for Cyprus’ Farming Future
With funding for modernization, sustainability, and youth engagement, the new plan aims to stabilize the agricultural sector, improve farmer incomes, and position Cyprus as a leader in Mediterranean farming. The consultation period will ensure that investments are tailored to real-world challenges, giving farmers the tools they need to thrive in a changing climate.
*This article was translated and sumarized from its Greek original. To read more of Panayiotis Rougalas' article and gain full access to in-depth reports (in Greek), subscribe now to Kathimerini's print edition and stay informed with comprehensive coverage on this and more!
