Ecoschemes

Eco-schemes are a set of environmental requirements embedded in the European Union's Common Agricultural Policy (CAP) for direct payments to farmers. Introduced in the 2023 reform, they are a mandatory part of Pillar I funding and are designed to reward farmers for delivering environmental benefits, biodiversity, soil and water protection, and climate action.

Member states design a menu of eco-schemes in their CAP strategic plans. Each farm must participate in at least one eco-scheme or meet equivalent environmental standards to receive direct payments; the exact share of payments allocated to eco-schemes and the specific schemes vary by country. Common examples include crop diversification, maintaining permanent grassland, restricted pesticide use, reduced fertilizer application, preservation of hedgerows, soil-improving practices, and high-diversity rotational cover crops.

Administration and compliance are carried out through standard inspections and cross-checks. Failing to meet the scheme requirements can lead to partial or full loss of the eco-scheme payment, potentially affecting total direct payments. The schemes operate alongside other CAP instruments, particularly agri-environment-climate measures in Pillar II, and complement broader environmental and rural development goals.

Criticism and challenges include administrative complexity, varying design across member states, and concerns about distributive effects among farm types. Proponents argue eco-schemes provide a clearer, more predictable incentive for environmental practices and align agricultural income support with EU environmental objectives.