Eco-schemes and Cereal Sustainability: Opportunities and Challenges in Italy’s PSN 2023–2027

The new National Strategic Plan (PSN) 2023–2027, which implements the Common Agricultural Policy (CAP) in Italy, marks a turning point for cereal crops — especially wheat.
For the first time, sustainability is not an option but a requirement for accessing European funds. At the heart of this new approach are eco-schemes, instruments that reward farmers who adopt environmentally beneficial practices.

What Eco-schemes Are

Eco-schemes are annual payments granted to farmers who voluntarily adopt sustainable practices.
Each EU country has designed its own system according to national priorities. In Italy, the challenge is to balance productivity with environmental protection in a landscape dominated by cereal crops.

Italy’s PSN includes five main eco-schemes, at least three of which directly affect wheat:

  • Eco-scheme 1: maintenance of permanent grasslands in Natura 2000 and vulnerable areas;
  • Eco-scheme 2: grass cover in orchards and vineyards;
  • Eco-scheme 3: integrated and organic farming practices;
  • Eco-scheme 4: conservation tillage and minimal soil disturbance;
  • Eco-scheme 5: biodiversity enhancement through flower strips and crop rotations.

Impact on Cereal Systems

Eco-schemes are not limited to pastures or vineyards. Cereal farms can benefit by adopting longer rotations, winter cover crops, or reduced tillage.
According to CREA (2024), around 40% of durum wheat in southern Italy and 25% of soft wheat in the north are potentially eligible for eco-schemes 3, 4, and 5.

Such practices improve:

  • soil health by reducing erosion and increasing organic matter;
  • water efficiency, thanks to better retention capacity;
  • climate resilience, by mitigating yield losses during drought;
  • biodiversity, encouraging pollinators and beneficial insects.

Opportunities and Economic Limits

Participation in eco-schemes brings environmental benefits and financial incentives. Payments range from €60 to €120 per hectare, depending on region and practice.
However, studies by ISMEA (2024) and CREA (2025) show that transition costs — new machinery, seeds, and monitoring systems — can offset early gains.

Larger farms with technical support or digital tools can treat eco-schemes as medium-term investments. Smaller producers, however, still face obstacles from bureaucracy and fragmented rules.

Implementation Challenges

The main issues observed during 2023–2024 include:

  • regional disparities in implementation and control;
  • payment delays;
  • uncertainty about compatibility with other subsidies (organic, rural development, supply chains);
  • difficulty in measuring environmental outcomes.

The key challenge is impact verification. Without measurable indicators, eco-schemes risk becoming more administrative than transformative.

Future Outlook: Toward Eco-schemes 2.0

In 2025, the European Commission will launch a mid-term review of the CAP.
Proposals include:

  • integrating carbon and biodiversity credits into CAP payments;
  • simplifying procedures through data sharing and blockchain tools;
  • creating adaptive climate eco-schemes linked to measurable results (e.g., organic matter increase, input reduction).

The future of sustainable wheat production will depend on transforming eco-schemes from an administrative requirement into a driver of genuine innovation.
With proper training and digital integration, these tools could make Italian cereal farming greener, more efficient, and more resilient.

Sources:

  • Ministry of Agriculture (Italy), PSN 2023–2027 Update (2024)
  • CREA (2024–2025). Evaluation of CAP Eco-schemes in Cereal Farming
  • ISMEA (2024). Economic Impact of Eco-schemes on Italian Farms
  • European Commission (2024). CAP Strategic Plans: Mid-term Review
  • FAO (2024). Agroecological Practices and Policy Instruments for Cereal Sustainability