The Government of Aragon is stepping in to support farmers facing the harsh realities of an extended drought. Officials warned that the worst may still lie ahead, with the Agriculture and Environment Minister describing the initial measures as a critical relief step. A new scheme is under consideration to ease fundraising requirements tied to the Common Agricultural Policy (CAP), aiming to accelerate access to funds. The plan also includes a subsidized loan program with zero interest to ensure liquidity for producers as they navigate the upcoming farming cycle, safeguarding farm operations into the next year.
Although exact monetary figures were not disclosed by the consultant, they indicated a rise in financial backing, including substantial sums negotiated with agricultural groups. The goal is to provide directors and farmers with what they need to keep farms running, the official asserted. Grants to cover a portion of agricultural insurance costs were also announced, with a view to broadening support. A central government approval last week earmarked 636 million for related measures, and a clear path for further assistance was outlined.
The minister reiterated a commitment to ensure liquidity for farmers, highlighting plans for interest-free financing and stressing that the most damaging effects may still be on the horizon, particularly in irrigation contexts.
The aim behind making CAP payments more flexible is to deliver funds to beneficiaries without stringent eligibility hurdles, a change prompted by drought-induced reductions in crops and partial crop failures. In irrigation areas, typical CAP requirements, such as increasing fallow land to 50% or reducing improved crops from 10% to 5%, would not block access to benefits. Grazing allowances would also be expanded across regions managed under the biodiversity eco-regime.
direct help
Officials stressed that the flexibility measures address the majority of CAP-related questions raised by agricultural groups. Financial support will be deployed with a system of warranties and security to ensure timely payouts, following parliamentary approval anticipated this week, and after clearance from the Ministry of Agriculture.
Once the initial objective is achieved, a decree will guide the industry toward subsidized loans with no financial costs, designed to secure liquidity for the upcoming campaign. Farmers are expected to plant in September and cover that campaign’s costs, with the consultant noting that the funding amount will be finalized in consultation with sector organizations in the near term.
permanent financial instrument
On direct aid, the minister indicated that existing livestock subsidies were sufficient and clearly defined. In Aragon, assistance of 18 euros per sheep will be paid without conditions, while crop-related support faced uncertainties due to earlier unmaterialized circumstances. The directorate-general for agriculture voiced openness to additional funding if conditions change.
The minister urged prioritizing interest-free financing for the sector while losses are assessed across different segments. He did not rule out the possibility of additional direct measures should the severity of crop damage warrant it.
The overarching aim is to speed up assistance and avoid waiting for new regulations whenever climate or market challenges arise. The forthcoming decree will embed a permanent loan mechanism so farmers and ranchers can access these financing options consistently.
The Ministry of Agriculture intends to maintain a stable legal and administrative framework and ensure budgetary support for the new orders that implement it. The commitment is to include ongoing funding within the Autonomous Community’s budgets to sustain permanent support for the sector.