Full explanation
CAP has two main pillars: (1) DIRECT SUPPORT (Pillar 1) — BISS (Basic Income Support for Sustainability), area-based payments of EUR 180–250/ha depending on country; (2) RURAL DEVELOPMENT (Pillar 2) — land improvement, energy efficiency, processing projects. The 2023–2027 reform introduced: (a) Eco-schemes — 25% of Pillar 1 for climate-friendly practices (cover crops, no-till, biodiversity), additional EUR 40–120/ha; (b) Carbon farming — EUR 40–90/t CO₂-eq payments; (c) Increased support for small farmers (up to 50 ha) and young farmers (+30%). For Ukraine: the 2025 EC Report noted Chapter 11 progress; a transitional access regime is expected in 2027–2028 at 40–60% of CAP rates in the first 5 years. Key challenges: (1) harmonizing DSTU with EU EN standards, (2) building LPIS (Land Parcel Identification System); (3) rolling out eco-schemes across large agri-holdings.