The proposals aim to severe the traditional link between aid from Brussels and what farmers actually produce, which Fischler said would lower the cost of marketing farm produce.

"If we are paying a premium per cow then we have supplementary costs when it comes to selling that cow. If we get rid of the pressure to produce more, then the cost of marketing the cow is lower," he said.

The European Union's farm policy, worth 40 billion euros ($39.31 billion) a year, is coming under mounting pressure as the 15-nation bloc prepares to admit up to 10 new members and enter new talks aimed at breaking down global trade barriers.

Fischler wants to impose tough environmental, animal welfare and food safety standards on farmers. There will be less money for market subsidies but more spent on rural development.

"In some cases we still have incentives, where a farmer receives grants for producing more goods. We want to get rid of these incentives," Fischler said.

A draft, seen by Reuters, shows their most radical element is an end to production-related subsidies, a mainstay of the current CAP. Farmers would get a single payment from Brussels based on money received in the past - regardless of whether they continue production on the same scale.

Fischler said the reform would not affect small farmers.

"This is really just about the really big farms, most are not affected by this reform. The money we are trying to save will not take anything away from agriculture. The reform is about more money for certified production, more money for measures to help the environment," he said.

"We have to decide whether we want total industrialisation of farms or something else. I believe when it comes to wheat, milk and meat, people want a healthy environment."

Fischler has support from countries including Britain, which have been pushing for a shake-up of farm policy for years but the reform plans are likely to face a rough ride from countries like France, the traditional defender of the CAP.

"We have not convinced the French...but there will be negotiations," he said.