The main point of this paper was to explore the impact of the Common Agricultural Policy of the EU in the Republic of Croatia and its impact on agricultural activity. CAP is one of the oldest polices of the EU, created in 1962. when the food supplies were insufficient. It is a political sector in which the EU invests the most financial resources. The main objectives today are to provide a stable and sustainably produced supply of food at affordable prices, while also ensuring a decent standard of living for hardworking farmers. All of the CAP reforms have led to the CAP that we know today. The latest reform of 2013 was a kind of support to producers, based on the land and sustainable agriculture based 'green' direct payments. By entering the Republic of Croatia in the EU, CAP becomes relevant also for Croatian farmers. Croatian farmers in terms of attitudes were actually in fear of an uncertain future towards accession to the European Union. However, those with higher agricultural income were more sure in their competitive advantage on the European market. In the Republic of Croatia, today direct payments already provide some good guidelines for a Single Payment Scheme and the Good Agricultural and Environmental Conditions, and on the other side the Rural development policy is based on a national strategy. Within the framework of European programs based on the analysis of strengths, weaknesses, opportunities and threats, the Republic of Croatia and the Member States can decide about appropriate measures from the list of measures agreed at EU level, and on that way they are helping to achieve common EU goals for smart, sustainable and inclusive growth.