The EU Commissioner for Agriculture is moving to reassure Irish farmers amid concerns over the future of CAP funding.
The Commission is proposing a reduction in direct support payments by around €30 billion beyond 2020.
The Irish Farmers Association has previously described the move as a major threat to the sector and insists farmers are already struggling on low incomes.
Phil Hogan insists the negotiations are still at an early stage but admits Brexit is already having an impact on the budget.
"It's the first time that a member state has left the European Union," he said.
"Because it is a big member state it has generated a big problem in terms of our finances, by €12 billion.