The European Union’s agricultural and food system is in urgent need of transformation to improve environmental sustainability and farmers’ economic well-being, while remaining competitive. IFOAM Organics Europe calls for an ambitious reform of the Common Agriculture Policy (CAP), that will enable an agroecological transition of the agri-food system benefiting all actors of society, farmers and citizens. The vision proposed by IFOAM Organics Europe insists on the need to adequately reward farmers engaged in sustainability systems, such as organic farmers, for the benefits they deliver to the environment and society. As the agri-food sector is faced with multiple challenges, the CAP must undergo an ambitious reform to stay relevant and deliver environmental and socio-economic sustainability. Representing a significant share of the EU budget, this tool has the potential to steer the transition towards sustainability of the agri-food system. To do so, the CAP must take a systemic approach of agricultural production and have a budget dedicated for socio-economic criteria. IFOAM Organics Europe proposes a three-stage approach to ensure proportionality between a farm’s level of environmental ambition and the funding it receives, based on the four key areas of soil protection, water and climate impact, and biodiversity. This structure would maintain a high-level of environmental ambitions and introduce a coherent approach at farm level, facilitating the administration for farmers and national authorities. This vision meets two objectives: rewarding farmers already engaged in sustainable methods of production and supporting farmers in the gradual transition towards agroecology. IFOAM Organics Europe also emphasizes the key role of the CAP when it comes to ensuring a stronger and fairer market regulation. This aspect should be developed, in order to at strengthen the role of farmers in the agri-food supply chain, increase their resilience to economic crisis and ensure a decent income. In complement of this, targeted measures should support farmers based on socio-economic criteria.