Bill proposing aid and protection for Spain's agri-food sector

Automatic summary, not yet reviewed

1. The bill would give the agri-food sector new tools to guarantee food supply and security, especially in crisis situations, and to secure the profitability and future of its farms and companies.
2. It proposes annual state aid, of the minimis type, for owners of farms in sectors in crisis, whose production costs exceed the prices they receive and whose continuity is at risk. The Ministry of Agriculture, together with the autonomous communities, would decide each year which sectors are affected and set the rules for the aid.
3. While there is a risk of activity shutting down due to loss of profitability, it proposes applying the minimum VAT rate allowed to energy and to purchases of products farmers and ranchers use as raw materials.
4. It proposes strengthening the monitoring of agricultural markets and trade with third countries, with early warning systems for serious disruptions, and studying the creation of strategic reserves of basic foods.
5. It proposes reviewing the Combined Agricultural Insurance System to improve coverage, pricing and reinsurance, and amending the agricultural insurance law so insurance also covers risks to farm income. It also provides for irrigated farmers to have hydrological drought coverage in 2025.
6. It proposes promoting carbon farming, so farmers and ranchers can sell on the emissions market the carbon their land and crops absorb, and adjusting the treatment of agricultural and forestry plant waste, allowing burning with authorization for plant health reasons or to prevent fires.

Who it affects

• Farmers and ranchers: They could receive crisis aid, pay less VAT on their inputs, buy insurance covering their income, and sell carbon rights.
• The food industry and distribution: Reduced VAT would apply to their energy and raw materials, and they could market emission reductions.
• Rural areas: Government rules would have to include a report on their impact on rural activities and population.
• The autonomous communities: They would cooperate in market monitoring and authorize the burning of plant waste.

Words worth knowing

Ayudas minimis

Small public aid amounts that the European Union allows without prior authorization.

Seguros agrarios combinados

Combined Agricultural Insurance: a public-private insurance system covering farmers against damage such as hail, drought or frost.

IVA

Value added tax (VAT), a tax paid when buying goods and services.

Mercado de carbono

Carbon market: a system where rights to emit or absorb carbon dioxide are bought and sold.

Jerarquía de residuos

Waste hierarchy: the priority order for handling waste, from prevention and recycling to disposal as a last resort.

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