The government in Spain has announced a package worth over €2 billion to help offset the impact of an ongoing drought on the country’s farmers.
The country’s environment ministry will use €1.4 billion of the funds to build new water infrastructure, increase the use of urban waste water and reduce water tariffs for farmers.
The funding package will include over €636 million in direct state aid to support farmers and ranchers.
The government said that the lack of rainfall has impacted pastures and has forced farmers, who are already suffering the consequences of the war in Ukraine, to buy expensive feed for their animals.
Farmers
€355 million has been earmarked for the meat and dairy farming sectors to compensate them for the increase in production costs, such as feed and other inputs.
Farmers will receive payments of €100/cow and €15/sheep and goat reared for meat, while milk producers will be allocated €40/cow and €10/sheep and goat.
A further €276.7 million will be allocated to the agriculture sector to identify crops and areas most impacted by the drought, while country’s beekeeping sector will also receive €5 million.
The government will also subsidise up to 70% the cost of insurance policies already in place which include coverage for the risk of drought in crops.
Spain is also considering flexibility measures in the application of the Common Agricultural Policy (CAP) such as the extension until June 30 for submitting aid applications.
Drought
Between October 1, 2022 and last week, rainfall in Spain has been 27.5% below average.
Last month, the country requested the use of crisis funds from the EU to deal with the drought conditions the country is currently experiencing.
According to COAG, Spain’s largest farmers’ association, the drought has already impacted 60% of the Spanish countryside and has resulted in “irreversible losses” in more than 3.5 million hectares of cereals.
Orders have been given in some parts of the country to stop the planting of industrial tomatoes and other vegetables like carrots, broccoli and cauliflower due to the lack of water supply and restrictions.