€10.2 million in compensation paid in 2025
The Department of Agriculture has announced that compensation payments totalling €10.2 million were completed within 2025, providing financial support to farmers and producer groups affected by severe drought conditions.
According to the announcement by the Department of Agriculture of the Ministry of Agriculture, Rural Development and Environment, a total of 2,516 applications for compensation were approved during 2025. The payments relate to applications submitted and assessed within the year and aim to offer meaningful financial relief to producers impacted by extreme drought recorded in the previous year.
Part of broader support scheme
The compensation forms part of a wider Support Scheme designed and implemented by the Ministry following consultations with the agricultural sector.
The Department noted that the aid was granted under Measure 23 of the Rural Development Programme 2014–2020, which provides lump-sum financial assistance to affected producers. The measure covers a wide range of sectors, including cereals, citrus fruits, olives, vegetables, potatoes, vineyards, avocados, beekeeping, and producer organisations.
Beneficiary selection was based on official assessments, data from district offices, and registries. The support was available to both professional and non-professional farmers, subject to specific terms and conditions.
Distribution of support
According to the Department of Agriculture, professional farmers accounted for the largest share of beneficiaries and formed the majority of applicants.
It was also noted that for approximately 50% of eligible areas involving deciduous trees, walnut and almond crops, no applications were submitted.
The year 2024, for which the compensation was paid, was described as one of the most challenging in the history of Cypriot agriculture. Cyprus experienced one of the driest periods in recent years, with low rainfall and unusually high temperatures leading to reduced productive capacity.
The impact was particularly evident in crops such as cereals, olives, fruit, vegetables and vineyards, with declines observed in both yield and product quality.
Water shortages and pressure on the sector
The Department further highlighted that reduced water reserves in dams and extreme weather conditions placed significant pressure on the agricultural sector, directly affecting farmers’ income and underscoring the need for timely and targeted state intervention to sustain production activity.
State response and emergency measures
The authorities officially recognised the situation as a natural disaster, and Cabinet decisions 1540/2024 and 1383/2024 approved compensation payments to affected farmers, alongside a series of water management measures for irrigation and water supply purposes.
As part of the process, the Department examined all production sectors to confirm minimum production losses of 30% or more, assessing both actual production loss and potential loss of productive capacity attributable to drought.
Farmers were also given the opportunity, through consultations, to submit additional data for review before final decisions were made.
EU emergency aid
In addition, the European Commission approved emergency aid of €3.5 million from the agricultural reserve, which was paid in September 2025 to support the sector and limit broader economic impacts.
The Department stated that the activation of both national and EU support tools resulted from Cyprus’s systematic and well-documented efforts to highlight the drought issue at European level, as well as coordination with other member states facing similar challenges, within the broader EU response to climate change impacts.
The prolonged drought, which began in December 2023, is now entering its fourth consecutive year. The Department of Agriculture confirmed it remains in continuous communication with farming organisations and closely monitors damage assessments, with the possibility of activating additional support measures where necessary, to safeguard the sustainability of agricultural production and support producers affected by the climate crisis.
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