The European Union provides farmers with income support or “direct payments” to: function as a safety net and make farming more profitable; guarantee food security in Europe; assist them in the production of safe, healthy and affordable food; reward farmers for delivering public goods not normally paid for by markets, such as taking care of the countryside and the environment.

Farmers generally receive income support based on their farm’s size in hectares. All EU countries have to offer a basic payment, a payment for the climate, environment and animal welfare to promote sustainable farming practices (eco-schemes). As it is compulsory for EU countries to provide these payments, they are often referred to as obligatory payments. Eco-schemes are obligatory for EU countries to provide to farmers, but voluntary for farmers.

Additionally, EU countries can choose to offer other payments that focus on specific sectors or types of farming. There are specific schemes designed to provide further help to small and medium sized farms, young farmers, farmers who operate in areas of natural constraint and/or sectors undergoing difficulties.