Understanding the CAP: A Guide for Young Farmers

Introduction

For young farmers in Ireland, breaking into the industry feels like hitting a moving target. Land costs are steep, inputs aren’t cheap, and there’s a lot to figure out. Yet, alongside the challenges sits a genuine opportunity, the Common Agricultural Policy (CAP). This has specific support for people in your shoes.

But here’s the truth, it’s not a magic wand, it’s a helping hand, one that can give you breathing room but doesn’t replace a solid, sustainable strategy. Here’s what it offers, what it doesn’t, and how to make it work without illusions.

What’s on Offer

Let’s start with the good news. If you’re under 40 and just setting up as the head of a farm, the CAP has a few things designed specifically for you.

The Young Farmer Top‑Up
For up to five years, you can claim an extra €145–€180 per hectare, up to 50 hectares, on top of your Basic Income Support. On a 40‑hectare farm at €160 per hectare, that works out to roughly €6,400 a year, or €32,000 over five years.

The Start‑Up Grant
There’s also a one‑off grant of up to €70,000 to help you invest in machinery, buildings, livestock or land improvements. You’ll need to co‑fund about 40 per cent, so it’s not entirely free, but it takes a big chunk out of your set‑up costs.

Priority Access & Higher Rates
Young farmers often jump the queue and enjoy higher grant rates, up to 60 per cent, on schemes like TAMS (farm modernisation) and ACRES (environmental improvements).

Eco‑Schemes
On top of everything else, you can earn around €77 per hectare per year for meeting sustainability measures like planting pollinator strips, maintaining hedgerows, rotating crops or improving soil health. These payments matter, and they align your business with where the market and policy are heading.

The Reality Check

The Age Problem
Here’s why young farmers matter, and why the CAP is geared towards you. The average age of Irish farm holders is now 59.4 years. Around 38 per cent of Irish farmers are over 65, while just 4.3 per cent are under 35.

That makes young entrants rare, and vital, in an industry that badly needs new blood.

Land
CAP helps, but it can’t make land more affordable. With farmland prices hovering around €11,000–15,000 per acre, and rental markets extremely competitive, finding a viable piece of ground remains the biggest barrier for many.

Paperwork
Be prepared. The paperwork is heavy. Keeping detailed records and staying compliant can feel like a full‑time job. Inspections are part of the deal, and errors can cost you money.

Budgets & Competition
These schemes don’t have endless money. Many are first‑come, first‑served, and the more applicants there are, the less each person might get.

Productivity Trade‑Offs
Some eco‑schemes require you to take land out of production or reduce stocking rates. The payments soften the blow, but the reality is you might see a dip in output.

Making the CAP Work for You

The CAP can be a real boost when you’re starting out, but only if you approach it with a clear head.

• Get the basics in place early: Don’t leave your Green Cert, herd number or business plan to the last minute. Most applicants already have them sorted.
• Be honest about the land situation: Only about 14 per cent of young farmers own all their land. The rest lease or patch it together. Nothing wrong with that, but be realistic about costs and competition for ground.
• Pick schemes that fit your system: I’ve seen farmers jump at eco‑schemes that ended up hurting their output because they didn’t match their enterprise. If you’re intensive dairying, avoid measures that cut stocking rates. If you’re on heavier or marginal land, lean into biodiversity and carbon‑focused options.
• Run the numbers properly: That €77 per hectare eco‑scheme payment can look good, but if the required practice costs you more in lost production, you’re worse off. Do the sums before signing.
• Plan past the five‑year mark: The young farmer top‑up doesn’t last forever. Use it to invest wisely and build a system that works without it.
• Find your network: Farmers in discussion groups and mentorships consistently perform better. Teagasc data backs that up. Learn from others so you don’t have to make all the mistakes yourself.

What’s Next?

The next round of CAP, due after 2027, is already taking shape and it’s clear that the rules are tightening, not loosening.

• More tied to real results: At least a quarter of the budget is already earmarked for eco‑schemes, and that share is expected to rise. Farmers will need to show actual improvements in soil health, biodiversity and emissions, not just tick boxes.
• Fewer free rides: Payments will focus more on active farmers, not absentee landowners. If you’re hands‑on and farming properly, that’s a big positive.
• More support for smaller, sustainable farms: Big operators will continue to face caps, freeing funds for younger and greener farmers who are willing to adapt.
• Stricter compliance: More proof, more audits, and higher expectations. Younger farmers generally adapt better, but you’ll still need to keep good records and stay on top of your obligations.

Bottom line: if you’re willing to farm actively and sustainably, and prove it, the direction of travel is very much in your favour.

Conclusion

Starting out in farming today isn’t easy, but the CAP can give you the breathing space to get your feet under you and build something lasting. Use the support wisely, make decisions that suit your farm and your goals, and don’t be afraid to ask for help along the way. The future of Irish farming needs young farmers,  and you’ve got what it takes to make it work.

If you need guidance on navigating the schemes or planning your next steps, The Informed Farmer Consultancy is here to help you make the most of the opportunities.

*By Anne Hayden MSc., Founder, The Informed Farmer Consultancy.