Urgent drought aid for Spanish farmers and livestock breeders

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1. The law provides aid and support to farms that have lost at least 20% of their normal production in disadvantaged areas, or 30% in other areas, because of drought. The Government may apply these measures to other drought situations during the 2017-2018 hydrological year.
2. Irrigation rights holders in areas with a declared drought, plus the Mancomunidad de los Canales del Taibilla and Almería supplies served by the Tajo-Segura aqueduct, are exempt from the water use tariff, the regulation levy and other fees. Those who already paid can request a refund.
3. Contract suspensions, reduced hours and collective dismissals directly caused by drought count as force majeure, and the Social Security Treasury may exempt the employer from paying contributions. Affected farm companies and self-employed workers may also request a one-year, interest-free deferral of Social Security contributions from July 2017 to July 2018.
4. An Extraordinary Fund to fight drought is created with 1,000 million euros for 2017, which can subsidize up to 70% of uninsurable damage, capped at 8,000 euros per beneficiary. A 1,000-million-euro ICO loan line is also set up, with a maximum rate of 1.50% APR and a five-year term.
5. The levy on the use of continental waters to produce electricity rises from 22% to 25.5% of the tax base, to fund protection of public water assets. Hydroelectric plants of up to 50 MW and pumped-storage plants above 50 MW receive rebates of 92% and 90% respectively.
6. Seasonal farm workers in Andalusia and Extremadura may receive unemployment benefits or the farm income subsidy with only 20 paid workdays in the previous twelve months, instead of the usual minimum. Farmers and livestock breeders with uninsured damage are also exempt from the rural property tax (IBI) for 2017 and 2018.

Who it affects

• Farmers and livestock breeders in drought-affected areas: They receive water fee exemptions, rural property tax exemption, ICO loans, Extraordinary Fund aid and Social Security deferrals.
• Seasonal farm workers in Andalusia and Extremadura: They can access unemployment benefits or the farm income subsidy with only 20 paid workdays.
• Companies and workers of affected farms: Drought-related dismissals and suspensions are treated as force majeure, and Social Security contributions can be deferred.
• Electricity producers using continental waters: They pay a higher levy (25.5%), although small hydroelectric plants get a larger rebate.
• Mancomunidad de los Canales del Taibilla and Almería supplies: They are exempt from Tajo-Segura aqueduct fees while a drought is declared.

Words worth knowing

Canon

A levy or fee paid for using a public asset, such as water to produce electricity.

Dominio público hidráulico

Rivers, lakes, riverbeds and waters that belong to everyone and are managed by the State.

Fuerza mayor (force majeure)

An extraordinary, unforeseeable cause that justifies exceptional measures, such as suspending employment contracts.

Demarcación hidrográfica

A territory grouping the waters of one or more river basins, managed jointly.

TAE (APR)

The real interest rate of a loan, including interest and fees.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries