The Ministry of Agriculture, Fisheries and Food announced a call this week about disputes among major unions and protests planned in Spain over the coming weeks. The farmers’ concerns echo those of their European peers, though Spain’s production system brings distinctive features and reasons behind the unrest.
food chain law
Farmers and ranchers see a growing tension in the system. They point to persistent non-compliance with the food chain law, a regulation approved in December 2021 that aims to recognize rural activities and the value of food while ensuring producers can cover their production costs. A representative from Unió de Pagesos (UP) argues that the ministry should set clear criteria to determine production costs and guarantee that the prices farmers receive, particularly the origin price, are enough to sustain livelihoods. The Food Information and Control Agency (AICA) is urged to conduct ex officio inspections in cases where prices stay abnormally low, such as the current situation with lemons, according to campaign organizers.
Diesel for professional use
Industry groups are calling for faster and more direct support for diesel used in agriculture. The request is to implement the discount that has been extended in Spain since January 1 at the point of sale. Opponents instead prefer maintaining the end-of-year tax deduction system, which aligns with post-Covid practices for individuals. Government plans laid out last December envisioned maintaining the prior net return amount for the 2024 tax year to offset rising costs in inputs for farming and livestock activities. In practice, a discount of 35% on diesel purchases and a 15% reduction in the price of agricultural inputs and fertilizers are at stake.
Import from third countries
Managers call for action against unfair import competition. They argue that non-EU products do not meet the same production conditions required of EU members, creating downward pressure on prices in Spain within a deregulated market. These imports from countries such as Morocco, which enjoy favorable terms under trade arrangements, are scrutinized for potential misalignment with EU internal regulations and tariff schedules. The debate includes whether to review or renew contracts with major competitors like New Zealand, Chile, Mexico, Kenya, and India. Critics urge robust EU border controls to ensure imported goods comply with EU standards and tariff terms determined by free trade agreements.
Effect of drought
The Catalonia and Andalusia protests highlight drought-related grievances. Unió de Pagesos calls for immediate payments of promised aid to help offset costs for seed, diesel, fertilizer application, soil management, and planting in the grain and herbaceous sectors affected by dry spells. Andalusian farmers demand urgent improvements to hydraulic infrastructure, noting that water constraints in provinces such as Huelva account for about half of the challenges faced by farmers in the region.
Agricultural insurance reform
Farmers, especially those hit by extreme weather, advocate reform of agricultural insurance to better reflect the realities of climate change. They argue for a stronger budget to adapt insurance to droughts and more frequent severe weather events, which are intensifying and becoming more common. A government minister recently signaled consideration of rural insurance reform in parliament, but specific budget allocations or timelines were not provided. The unions stress that insurance must shield producers from heightened volatility and yield losses linked to climate patterns.
bureaucratic burden
Unions demand greater flexibility and simplification of existing farm policies. They argue that excessive bureaucracy raises costs for professional farmers and ranchers and makes it harder to meet environmental targets. Proposals include a moratorium on certain administrative requirements and the phasing out of a digital documentation system viewed by some as cumbersome. Regional authorities are urged to implement swift reforms to streamline procedures and accelerate aid distribution, which is currently beset by delays.
How did Brussels react?
The European Commission has so far responded to the French countryside’s call to suspend some CAP rules that encourage leaving land fallow. For Spanish farmers, this is not a top priority because crops like cereals and herbaceous species have long been left fallow to align with CAP expectations. The commission also supports placing limits on contract extensions and is exploring the stance on free trade with Ukraine to reassure farmers facing stiff competition in Eastern markets. Additional debates touch on a possible free trade agreement with Mercosur, which could offer advantages and challenges for Spanish producers; while exports may gain, other sectors such as livestock and citrus might remain more protected.