"We agreed on the need to introduce a cap of 100,000 euros on direct payments starting in 2022," Jaroslav Neverovic, a presidential advisor, told reporters after Nauseda's meeting with Palionis.

The measure is aimed at increasing transparency in the agricultural sector, he added.

Nauseda called for a cap on direct payments as soon as EU leaders approved the bloc's 2021-2027 budget in late July. His team initially said these payments could be capped at around 60,000 euros per farm.

The conclusions of the European Council of July 17-21 read that the capping of direct payments for large beneficiaries will be introduced on a voluntary basis at the level of 100,000 euros.

Under the 2021-2027 budget approved by EU leaders, direct payments to Lithuanian farmers are set to grow to 200 euros per hectare in 2022, from 177 euros currently. The minimum payment should reach 215 euros per hectare in 2027.

The Baltic states secured a better deal on agricultural subsidies at the end of the marathon summit in late July.