EU farm ministers have agreed to reform agricultural policy by shifting more subsidies away from production and liberalising the dairy market, reported BBC.
The deal on reforming the Common Agricultural Policy came on Thursday after protracted late-night talks.
More subsidies will be transferred to conservation rather than providing a safety net linked to farm production.
Milk quotas will be raised in the short term, but later scrapped. The measures will go into effect during 2009-2013.
The changes build on a major CAP reform enacted in 2003.