The agreement follows two days of intense talks in Brussels chaired by Simon Coveney.
The deal will now have to be finalised by the EU Council, the European Parliament and the European Commission - with an agreement set to be reached by June.
The Irish Farmers Association has said the deal contains "important flexibilities" - but the group maintain that farmers will still lose a significant amount of money.
Independent MEP Marian Harkin. She says Minister Coveney's proposals don't go far enough to ensure a fairer distribution of EU funds in Donegal.
She says with more discussions due in the coming weeks, agreement can be found...........