Speech by the President of the Government of Spain at the launch of the National Fertiliser Plan

SPEECH BY THE PRESIDENT OF THE GOVERNMENT OF SPAIN, PEDRO SÁNCHEZ

Thank you very much indeed, dear Luis; dear Minister for Agriculture, Fisheries and Food; dear Fran, Government Delegate. And also to the mayor of San Martín de la Vega. To the entire team at the Ministry of Agriculture, Fisheries and Food. Of course, to the representatives of the agricultural sector.

I would particularly like to thank Enrique for allowing us to present this state plan, which is so important for the sector, here at his facility. And I would also like to thank both him and Sergio for sharing their knowledge with those of us who lack it, thereby allowing us to learn something new today.

The minister mentioned this earlier. It is true that at the beginning of this year - looking back - few people knew exactly where the Strait of Hormuz was located on the map. And yet, overnight, that geographical feature, situated 6,000 kilometres away from us, became familiar and close to the hearts of all our citizens. As we are well aware, the conflict had a major impact on gas and oil prices. But there was also a potentially even more serious consequence, namely that almost a third of global fertiliser trade passes through that maritime corridor. In other words, the consequences of the war could have affected not only petrol pumps - as indeed they did - but also people's fridges. In short, we realised once again - the minister referred earlier to the war in Ukraine - that geopolitics suddenly bursts in upon our food supply and affects our daily lives.

Fertilisers, as has been said here, are a sort of fuel for the soil.

They are what turn a handful of seeds into a harvest and have a direct impact on farms, as Héctor rightly reminded us earlier. They affect profit margins - that profitability mentioned earlier - and the final price of food. Therefore, without them, what we have come to call "food security" would not be possible.

From the outset, the Government and the Ministry of Agriculture, Fisheries and Food have been fully aware of this; we have addressed the issue at every meeting of the Council of Ministers and, of course, under the leadership of Luis Planas, we have addressed both the cost of the shopping basket and the viability of a sector that already has to contend with a great many uncertainties - such as the climate emergency, droughts, floods and pests - to name but a few of the uncertainties you face on a daily basis.

That is why we have once again decided to take action using the full weight of the General State Administration and with a level of resources which, I would say, minister, is unprecedented. Through initiatives that directly benefit our producers. Today, in fact, we are publishing the first list of 425,000 beneficiaries of the fertiliser purchase subsidy, worth over 600 million euros. More than 600 million euros; 425,000 beneficiaries.

But we are not stopping there; we will carry on. Last Monday, at the Council of Ministers, we increased the fund for the purchase of fertilisers by 165 million euros.

These are certainly not, as the minister said earlier, isolated measures. In total, to give you an idea, we have allocated over 1.1 billion euros in aid to the primary sector to alleviate this crisis. And I would emphasise the point about this crisis. I am referring to the conflict between the United States and Iran. This figure - to give you an idea of the effort being made by the Government of Spain - is more than double the European average; more than double the European average.

What's more, we are maintaining measures that are already proving effective. With a second Royal Decree in response, we are effectively doubling the aid per hectare. We are maintaining the 20-cent-per-litre discount on diesel A. And we are consolidating a specific credit line through our public bank - the Official Credit Institute (ICO) - making up to 300 million euros available to those who need such financing.

I believe this is how we protect the primary sector in our country - farmers and livestock breeders. Through actions, not just words, and whilst, of course, being aware of a dual reality that I would like to share with you all.

Firstly, many farms operate on very tight margins, and I think Héctor's testimony is very telling in this regard, because he has specifically emphasised the profitability of agricultural holdings. Therefore, the first thing we need to realise is that farms are already operating on very tight margins.

And, secondly, once again, the uncertainty in this sector is affecting every single household in our country - every single one.

In any opinion poll, what is one of the main concerns that citizens have, apart from - naturally - access to housing? The cost of living - in particular, the price of food.

For this reason, I believe that supporting our farmers at particularly difficult times, such as those we have been experiencing in recent years, is much more than a moral duty; it is a commitment to society as a whole.

I would also add that if we have learned anything in recent years, it is that these support measures must do more than simply help us overcome crisis scenarios - that is, responding or reacting to sudden crises that stem from factors entirely outside our control, unrelated to Spain's position or, indeed, to any mistakes or successes we might have had in Europe. However, it is not enough simply to respond to urgent matters; we must also tackle the important issues, and these measures must therefore serve to prevent both current and future crises.

That is why I believe what we are presenting today - providing a structural response to immediate challenges - is so important. It will help us anticipate needs and drive the structural transformations required to achieve the level of competitiveness we desire for the primary sector.

We also need to answer the question of where we want this transformation to lead. And I believe we all know the answer - as Sergio also mentioned in his remarks: Towards a more sustainable agriculture sector - one that, evidently, must be more efficient to be more competitive and, as far as possible, less dependent on external sources.

These, ladies and gentlemen, are some of the objectives set out in the European Action Plan on Fertilisers, to which Minister Planas referred earlier and which, incidentally, Spain fully endorses.

But it's not just about heading in the right direction; it's about making progress along that path. And, by the way, we must do so with some speed, as Europe's pace of progress can sometimes be rather slow. That is why the announcement we are making today is so important - and I would like to once again acknowledge the commitment shown by Minister Planas and the entire team at the Ministry of Agriculture, Fisheries and Food. We are presenting our own National Fertiliser Plan. A plan backed by resources and a timeline, featuring concrete measures and a clear commitment to listening, ensuring that the voice of our agricultural sector takes precedence during its development.

The inter-ministerial working group is now up and running. This will be followed by discussions with all the relevant authorities and, of course, with all the stakeholders involved.

What is the goal? The aim is for this Action Plan to belong to everyone, and for it to be ready by the first quarter of 2027. We are setting an ambitious timeline because we have clearly identified the three priority areas for action - areas that I believe are shared by everyone present here today.

Firstly, we must commit, or continue our commitment, to precision agriculture. We saw this today with the demonstration of drones and agronomic monitoring tools applied to maize farming. I believe that technology enables us to achieve things that seemed simply impossible just a few years ago; it enables us to better understand the soil - as Sergio and Enrique explained to me - optimise resources, cut costs and, consequently, increase profitability. And that therefore means lower spending, less environmental impact and greater ability to compete in global markets. So, first of all, precision agriculture.

Secondly, sa point raised by the minister - and one I fully endorse - is strategic autonomy; that is, reducing our dependency. We are not going to isolate ourselves, this is not about slipping into a brand of protectionism that leads nowhere, but we do need to reduce our reliance on, for instance, energy sources that are not our own; take the example of natural gas used to manufacture fertilisers.

It is a choice, then, between remaining dependent and vulnerable, or tackling this agricultural transformation with the same determination we applied to other shifts - such as the energy transition - which has made us price-competitive compared to many other European economies. In other words, I believe we can undertake this agricultural transformation to gain strategic autonomy and - why not say it - achieve agricultural sovereignty.

The third pillar centres on a topic we have discussed frequently in recent years and around which we have built a legislative framework. I am referring to price transparency, specifically a fertiliser market information system that allows us, for instance, to anticipate price trends, detect market strains and respond quickly to sudden inflationary situations, like the ones we have been experiencing recently.

Ultimately, what the Government of Spain proposes, working alongside other authorities and, I hope, the sector itself, is that Spain should produce more and better, of course, but do so while reducing dependency, thereby enabling us to more effectively support those who guarantee our food security.

Consequently, thanks to all of this, I believe there are excellent prospects for us to remain a top-tier agri-food powerhouse, ranking fourth in export volume within Europe and tenth globally. We export in large quantities, but - as the Minister for Agriculture, Fisheries and Food often reminds us - we also export quality, thanks to our farmers' commitment to innovation. We were just talking about innovation a moment ago, and I believe the interest and commitment to innovation demonstrated by those of you working in the agricultural sector serve as an inspiring example, not only to other sectors but also, of course, to the Government of Spain. I would also like to call for the inclusion of women, who already account for 30 per cent of employment in the primary sector.

Now, I believe we must maintain that ambition. We must go further, providing greater and better support for the nearly half a million farmers and livestock breeders who look after us with genuine commitment, and also through much more ambitious policies, because the current situation truly demands it.

I will conclude now. I would like to start by thanking you for your hospitality and for this morning's session, during which I have genuinely learned a great deal. What we are presenting today is not merely a National Fertiliser Plan. It is that, certainly, but it is more; and I do not wish to downplay the fact that we have proposed this State Fertiliser Plan as a complement to accelerate the measures that must come from Brussels. But it is not just a National Fertiliser Plan. As I have said before, it is a plan for food sovereignty and strategic autonomy. It is a plan for a transition that we must all tackle together and which must be fair, with particular regard for workers in the agricultural and livestock sectors. It must also be a plan that embraces innovation and, above all, ensures fair prices and, naturally, more vibrant rural communities.

For, clearly, rural Spain is not a periphery of progress but one of its backbones; that is how we in the Government of Spain view it. It is the sector that produces, that feeds us, and that protects our territory; it preserves our diversity, keeps our land alive, and - given the severity of the situation - helps contain and limit the impact of the difficult events we have witnessed in recent days, such as the wildfires breaking out in parts of Spain.

So, what I want to convey to you is that we are counting on all of you to continue sowing the seeds of our country's future. And once again, congratulations, minister, and let's get down to work.

(Transcript edited by the State Secretariat for Communication)