Planas presents a "solid" package of 43 measures responding to the main concerns of the agricultural sector

The Minister for Agriculture, Fisheries and Food, Luis Planas, after the meeting of the EU Agriculture and Fisheries Council of Ministers (Pool Moncloa)

The minister explained that these measures - grouped into seven areas - respond to the concerns put on the table at the various meetings he has held with the three agricultural organisations representing the sector, the Agricultural Association of Young Farmers (Asaja), the Coordinator of Farmers' and Stockbreeders' Organisations (COAG) and the Union of Small Farmers (UPA).

This initiative was presented by the ministry after the EU Agriculture Ministers Council, which last Tuesday approved the proposals to simplify and make the Common Agricultural Policy (CAP) more flexible, as well as other measures presented by the European Commission, which must now be ratified by the Parliament. The minister reiterated that the Council was "tremendously relevant for the scope of the measures adopted and for the urgency with which the European institutions have responded" to the mobilisations of farmers and stockbreeders in different Member States, which he acknowledged "have led to a change in the European Commission's position".

The proposals submitted already include those contained in the European Commission's proposal, which was endorsed by the Council of Ministers of the European Union last week and has been sent to the European Parliament under the urgency procedure.

The 43 proposals are grouped into seven blocks: simplifying and making the CAP more flexible; issues relating to cross-border trade in agri-food products; reinforcing the application of the chain law; improving the agricultural insurance system; tax, financing and labour measures; support for animal health and extensive stockbreeding; and reinforcing policies to facilitate generational change in coordination with the regional governments.

Luis Planas recalled that these proposed measures are in addition to the largest state aid ever given to the agricultural sector in Spain outside the CAP, with a total of 1.38 billion euros in direct support in the last two years. Just last week saw the resolution for the payment of the last line of aid published; 252 million euros for more than 131,000 producers of rain-fed land, rice and tomatoes for industry.

CAP simplification measures

The 15 proposals in this block include measures to make the application of the Good Agricultural and Environmental Conditions (GAEC) on tillage management (GAEC 5), soil cover (GAEC 6), crop rotation (GAEC 7) and set-aside (GAEC 8) more flexible, which can be applied retroactively from 1 January 2024, so that it is already effective for aid applications for which the deadline is currently open.

In addition, farms of under 10 hectares are exempted from controls, benefiting some 345,000 farmers, 55% of CAP recipients in Spain.

Likewise, the criteria for the application of eco-regimes are made more flexible and simplified; measures are adopted to encourage the application of the digital farm logbook, which is now voluntary, and a proposal is made to the European Commission that the obligation to submit geo-referenced photos with aid applications to demonstrate the state of the crops be eliminated. The application of the Royal Decree on soil nutrition is also made more flexible and the principle of a single inspection is established, in coordination with the Regional Governments, to prevent the same farm being subjected to more than one inspection in a year.

In the stockbreeding sector, the date for the obligation to have a comprehensive health plan on farms and for the electronic identification of cattle is extended, and certain requirements of the cattle management decree are made more flexible.

Issues relating to international trade in goods

The Government undertakes to defend in all EU forums that trade agreements with third countries include the application of mirror clauses so that imported products are subject to the same production conditions that the EU requires of its member states.

In this respect, Minister Planas pointed out that the European Union is getting closer and closer to this objective, which is a long-standing demand of states such as Spain and France, and which already has a majority in the European Parliament, although not in the Council. He pointed out that the EU already applies the deforestation regulation or border carbon taxes for countries that do not reduce CO2 emissions, which are measures equivalent to the application of the rules on the use of phytosanitary products, which is what the mirror clauses consist of.

The measures proposed by the ministry include a commitment to require imported food to have a zero residue limit for products not authorised in the EU. In addition, border controls on imports are to be strengthened and a permanent working group is to be set up with agricultural organisations to monitor imports and exports.

Strengthening the implementation of the Chain Law

The government will improve and strengthen the inspection capacity of the existing Food Information and Control Agency by converting it into a state agency, thus providing it with more structure to increase the trade relations subject to control.

The minister highlighted that the proposals being considered by the European Commission to reform the regulation on unfair commercial practices include the introduction of elements already applied in Spain, which is evidence of the pioneering nature of the law on the chain reformed in 2021.

Agricultural insurance

The Government undertakes to take the necessary measures, in dialogue with agricultural organisations, to guarantee the future of the agricultural insurance system in a situation in which the adversities caused by climate change have increased the number of claims and the level of compensation in the last two years. The ministry will continue to support the contracting of policies and hopes that with the contribution also made by the regional governments, it will be possible to reach the maximum eligible amount allowed by the European Union (75% of the commercial premium).

Tax, financing and labour measures

In this area, Minister Planas emphasised the ministry's contributions to the different lines of support for financing the agricultural sector, which would make it possible to mobilise credits amounting to 700 million euros.

Thus, the extraordinary allocation of 20 million euros, plus another 7 million euros for guarantees in the ICO-MAPA-SAECA credit facility, will make it possible to mobilise 200 million euros in loans for young farmers. In addition, the ministry will provide 50 million euros to guarantee credit operations of between 100,000 and 200,000 euros, which, according to estimates, could generate 500 million euros in loans.

The minister recalled that the reduced rate for hydrocarbons for agricultural use is maintained, in addition to the 35% deduction in Personal Income Tax (IRPF) for fuels and 15% for fertilisers. In light of the current situation in the agricultural sector, a 15% reduction will be established in the net yield for the tax return under the module system and the calculation of income for the application of the maximum limit for taxation under this system will be adapted, among other measures.

Animal health and extensive stockbreeding

The ministry will provide funding for the costs of campaigns under the tuberculosis action plan that cannot be covered by EU funds and for veterinary costs arising from the control of emerging animal diseases, such as epizootic haemorrhagic disease.

In the first fortnight of April, the forum on extensive stockbreeding will be set up to analyse the main problems and challenges affecting this type of production, in terms of health, economics and profitability.

Initiative with the regional governments for the generational changeover

The ministry will convene an extraordinary monographic sectoral conference to address the problem of the need for generational replacement in agricultural activities with the regional governments so as to draw up a joint proposal for actions that favour it, as well as the most efficient use of CAP resources.

Non official translation