The Cypriot government has introduced a €60 million investment initiative aimed at enhancing the competitiveness and sustainability of its agricultural sector. The New CAP Investment Strategic Plan referred to as the "Big Investment Plan," serves as the primary mechanism for fortifying the primary sector amidst evolving climate challenges.
This plan emphasizes farm modernization, crop protection infrastructure, smart farming technologies, and greenhouse operation enhancements. A notable feature is the streamlined licensing process, facilitating farmer investments and expansions.
Maria Panagiotou, the Agriculture Minister, launched the plan, initiating a consultation phase with farmers and agricultural professionals, concluding on February 28. Feedback will refine the plan for final approvals within the first half of the year. Panagiotou stated, "From the very beginning, we recognized that our financial tools must be targeted, effective, and responsive to the real needs of farmers," highlighting the plan's role in modernizing Cyprus' agricultural sector.
The plan's funding is categorized into three main areas: Modernization & Competitiveness Upgrades (Intervention 4.1.1), Environmental Protection & Animal Welfare Improvements (Intervention 4.1.2), and Animal Waste Management Solutions (Intervention 4.1.3). Maximum grant amounts have increased, with farmers eligible for up to €400,000, or €600,000 for young farmers. Animal waste management projects can receive up to €800,000, and pig farm relocation aid can reach €1.5 million. Environmental projects will receive up to 80% funding, similar to prior smaller-scale programs.
Additionally, €7.5 million is allocated for new farmers, with €3 million for sheep and goat farming. Grants range from €20,000 to €50,000, aiming to attract younger generations to agriculture.
The €60 million budget is divided among 10 priority areas, focusing on renewable energy, crop protection, smart irrigation, and industry-specific modernization. Highlights include €6 million for renewable energy measures, €3 million for crop protection infrastructure, and €29.5 million for modernizing sheep and goat farms, crucial for PDO Halloumi production. Other allocations include €3 million for cereal and fodder production, €6 million for greenhouse farming, €5 million for cow farms, €2 million for viticulture and fruit farming, and €1.5 million for smart irrigation projects.
The plan also simplifies licensing procedures for agricultural and livestock-related construction, reducing delays for farmers seeking to expand or modernize operations. A "Small Investment Plan" was initially budgeted at €10 million but expanded to €13 million, mobilizing a total investment of €20 million.
This investment plan is part of Cyprus' broader agricultural strategy, approved by the Council of Ministers in October 2024, which includes 11 key actions worth €109.3 million, prioritizing professional farmers. The overarching goal is to increase agriculture's contribution to the economy, currently at 1.3% of GDP (€369 million in 2023). The broader CAP Strategic Plan for 2023-2027, approved by the European Commission, will channel €454 million into Cyprus' agriculture sector, with €373 million from EU funds.
Source: KNews