Bill proposes aid for farmers hit by drought

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1. The bill would allow farm companies and farm workers to defer payment of their Social Security contributions, with a reduced 0.5 percent interest rate and repayment terms of up to 12 monthly installments.
2. It would reduce from 35 to 20 the required contributions days for seasonal farm workers in Andalusia and Extremadura to receive unemployment benefits or the farm income subsidy, through December 31, 2022.
3. It would set a 20 percent reduction in net income under the objective method for farm activities in 2021, and exempt farm property from the rural property tax (IBI) in 2022 for those who lost at least 20 percent or 30 percent of income, depending on the area.
4. It would create the LINEA ICO MAPA SAECA aid line: subsidized, non-repayable credits capped at 10 percent of the loan or 10,000 euros, with an initial budget of 10 million euros.
5. It would set maximum 2022 rates for desalinated water and for the Júcar-Vinalopó pipeline for irrigation, between 0.295 and 0.475 euros per cubic meter, so that irrigators in the southeast can afford the cost.
6. It would give the Guadalquivir River Basin Authority extraordinary powers to cut water supplies, change use priorities, replace water allocations and create user boards, with measures in force until December 31, 2022.
7. It would partially or fully exempt irrigators in the Guadalquivir and Guadiana basins from the regulation fee and water use fee if their water allocation was cut by at least 40 percent.
8. It would strengthen the penalty system: violating the measures would be an offense, provisional measures such as sealing facilities or suspending activities could be adopted, and the measures adopted would not be eligible for compensation.

Who it affects

• Owners of farms affected by drought and rising costs: They could apply for contribution deferrals, financial aid, income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. reductions and exemptions from taxes and water fees.
• Seasonal farm workers in Andalusia and Extremadura: They would need fewer contribution days (20 instead of 35) to receive the subsidy or farm income benefit.
• Irrigators in southeastern Spain: They would pay legally set rates for desalinated water and water from the Júcar-Vinalopó pipeline.
• Irrigators in the Guadalquivir and Guadiana basins: They would face water restrictions and fee exemptions depending on how much their water allocation was cut.
• Municipalities and other local entities: The rural property tax exemption would reduce their revenue, which the State would compensate for.

Words worth knowing

Real decreto-ley (royal decree-law)

A rule with the force of law that the Government can adopt immediately in situations of extraordinary and urgent need; it must later be validated by the Congress of Deputies.

Estimación objetiva (objective method)

A way of calculating business income using fixed indexes instead of actual income and expenses.

Canon de regulación (regulation fee)

A payment made by those who use water from public regulation works, such as reservoirs.

UTE (Unidad Territorial de Escasez)

A zone of a river basin classified by its water scarcity level: normal, pre-alert, alert or emergency.

Ayuda de minimis (de minimis aid)

A small public aid that the European Union allows without prior authorization.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries