Commission approves Spanish extension on payment of insurance premiums to agricultural producers

The European Commission has approved, under EU state aid rules, the extension of a Spanish scheme to help agricultural producers pay insurance premiums. The aim of the scheme is to help ensure that the risk of damage to certain plant products and livestock species is covered.

The measure was initially approved by the Commission on 9 April 2015 (HS.40313), amended in August 2015 (HS.42697), October 2020 (HS.58942) and October 2021 (HS.64784) and was due to expire on 31 December 2022.

Spain notified to the Commission the extension of the scheme until 31 December 2023 with a budget increase of EUR 438 million, bringing the total budget to EUR 2.66 billion. Under this scheme, aid takes the form of direct grants.

The objective of the prolongation is to continue to support the agricultural sector by ensuring adequate insurance cover for the risk of damage to crop products and livestock, especially in the context of the economic and social consequences following Russia’s war of aggression against Ukraine and the volcanic eruption on the island of La Palma on 19 September 2021. The prolongation of the scheme will contribute to economic and social recovery, in particular to address situations of social and economic vulnerability in Spain.

Increased support for EU farmers through rural development funds

The Commission has assessed the prolongation under the Guidelines for state aid in the agriculture and forestry sector and in rural areas, which allow the granting of aid to facilitate the development of certain economic activities, including those in the agricultural sector. The Commission has concluded that the additional funding allocated to the existing Spanish scheme and the extension of its duration do not change the initial assessment of the scheme, which remains in line with EU state aid rules.

The non-confidential version of the decision will be published under the case number SA.104060 in the State Aid Register on the Commission’s Competition website, once possible confidentiality issues have been resolved.

Source: European Commission Representation in Spain