Minimum prices in the food chain and farm support measures

Automatic summary, not yet reviewed

1. Every operator in the food chain must pay the previous one a price equal to or higher than that operator's actual production cost, and the operator selling to the final consumer cannot pass on to earlier operators the business risk from its pricing policy.
2. Food contracts must include production cost as a minimum price element, using objective and verifiable factors such as seeds, fertilizers, energy or machinery, and circular references to other operators' prices are banned. Commercial promotions are also regulated and must not mislead about the price or image of products.
3. Sanctions for serious and very serious offenses in food contracting will be published periodically once final, and in the case of State-imposed ones, on the website of the Ministry of Agriculture, Fisheries and Food.
4. Public aid for the first installation of young farmers can be taxed under personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. in four parts: in the year it is received and the following three, instead of paying the whole tax at once.
5. Seasonal farm workers in Andalusia and Extremadura can access the unemployment subsidy or the farm income benefit with only 20 contributions days in the previous twelve months, instead of the generally required number.
6. Companies that convert seasonal farm workers' temporary contracts into permanent ones before January 1, 2021 will get rebates on employer Social Security contributions for two years, with higher amounts for women workers. In addition, the Labor Inspectorate can now monitor housing provided to workers even when it is outside the workplace.

Who it affects

• Farmers, livestock breeders and other primary producers: Their contracts must show a price that covers at least their production cost.
• Food chain companies: They cannot sell below their cost or run misleading promotions; they risk published sanctions.
• Young farmers receiving installation aid: They can spread the income tax on the aid over four years.
• Seasonal farm workers in Andalusia and Extremadura: They need only 20 contribution days to receive the subsidy or farm income benefit.
• Farm companies and workers housed because of their job: The former can get rebates for converting contracts into permanent ones; the latter's housing can now be inspected.

Words worth knowing

Cadena alimentaria (food chain)

The set of steps a product goes through from the producer (farmer, livestock breeder) to the final consumer, through intermediaries and distributors.

Coste efectivo de producción (actual production cost)

The money a producer actually spends to obtain the product: seeds, fertilizers, energy, machinery, labor, etc.

Subsidio por desempleo agrario (farm unemployment subsidy)

A benefit for seasonal farm workers who have a minimum number of contribution days and are unemployed.

Bonificación (rebate)

A discount Social Security applies to the contribution a company pays for each worker.

Firmeza (finality)

That a sanction can no longer be reviewed or appealed, because all possible appeals have been used up.

income tax

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

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