The introduction of the next Common Agricultural Policy (CAP) looks set to be delayed for up to two years, with the EU’s budget for the next seven years the major sticking point.

The next CAP was due to start in 2021, but the European Commission has proposed a year-long transition period.

However, it is unlikely the necessary work can be completed within a year, with a two-year transition period looking increasingly probable.

Finnish MEP Elsi Katainen, who is overseeing the agriculture committee’s input, said a one-year transition would only be possible if there was a provisional agreement on the CAP budget by June 2020.

She said this would allow member states 12 months to design their CAP strategic plans and give the Commission six months to approve the plans.

A number of member states, including Ireland, share a similar position

However, the EU is locked in budget negotiations. The Commission has proposed a 5% cut to the CAP budget, which for Irish farmers would translate to €100m less per year.

The parliament and MEPs have rejected the proposed cut, saying the budget must be maintained at a minimum.

A number of member states, including Ireland, share a similar position. However, there are a number of countries unwilling to increase their contribution.

Budget talks are expected to come to a head in the second half of 2020 under the German presidency of the European Council.

The Commission said the 5% cut had been included because it was the only budget reference point it had

However, the 5% cut is included in the transition regulations.

The proposed transition period would apply an “old rules, new money” approach, with existing CAP rules rolled over but subject to the reduced budget.

The Commission said the 5% cut had been included because it was the only budget reference point it had when designing the transitional rules. MEPs were told last week that once the EU’s overall budget was agreed, the proposal could be adapted.