The European Commission has sent a draft proposal to member states for a limited extension to the state aid Temporary Crisis and Transition Framework to further support the agricultural sector.
The commission has proposed an extension to grant limited amounts of aid for the agricultural sector under the framework until June 30 this year.
The prolongation will allow member states to continue providing limited amounts of aid to farmers where needed and ensure that crisis support measures are implemented effectively.
It will not affect remaining provisions in the Temporary Crisis and Transition Framework.
A consultation is now taking place, whereby member states have the possibility to comment on the commission’s draft proposal.
The commission stated that it intends to adopt the amendments as soon as possible, taking into account the feedback.
State aid
The announcement follows response to the EU Commission’s survey that looked at the expiry part of the framework.
Member states underlined that market disturbances “persist”, which particularly has affects on the agricultural sector.
In the EU Council’s latest meeting, the council also called for an extension to the framework and underlined the importance of a resilient and sustainable agricultural sector for food security.
For companies affected by sanctions and countersanctions during Russia’s war against Ukraine, aid of up to €280,000 and €335,000 in the agriculture sector is available, and up to €2.25 million in all other sectors.
The aid, which can be granted in any form in principle until June 2024, will partially compensate companies, in particular intensive energy users, for additional costs due to exceptional gas and electricity price increases.
Member states can set up schemes for investments in all renewable energy sources, including renewable hydrogen, biogas and biomethane, storage and renewable heat, including through heat pumps.
Under these measures in particular, aid can be granted up until December 31, 2025.