The Cabinet has given farmers using state forest land one more year to secure valid licences before they lose access to agricultural subsidies.
Agriculture Minister Maria Panayiotou’s proposal pushes the deadline to 1 January 2026 after the number of issued licences crashed, leaving hundreds of farmers at risk of losing payments from the Agricultural Payments Organisation (CAPO).
The government’s original 2022 decision required farmers to hold official Department of Forests licences from 2023 to receive per-hectare subsidies. But whilst 1,257 licences were issued in 2023 from a potential 1,495, the number collapsed to just 555 in 2025 as delays in renewals left hundreds exposed.
Without the extension, those farmers would have lost their Single Area Payment and compensation from the Risk Management Scheme.
The Agriculture Ministry chose flexibility, allowing CAPO to proceed with 2025 payments even for farmers without secured licences.
But Panayiotou’s message is clear: this is the last extension. “This arrangement will not be repeated. Those who don’t comply with the obligation to secure a licence for 2026 will be permanently excluded from subsidies,” the proposal states.
From 1 January 2026, holding a valid lease or licence to use state forest land becomes mandatory for submitting applications to CAPO for subsidies under the Single Area Payment Scheme or measures of the Rural Development Programme.
The Department of Forests is expected to launch a guidance campaign for affected farmers. Requirements for new licences remain: no serious interventions on forest land, immediate settlement of debts owed to the Department of Forests, and, for those not in the registers, certification from CAPO proving they held and cultivated the specific land.