Spain increases budget earmarked for agricultural insurance by €60 million

Thanks to Spain’s Ministry of Agriculture farmers and stockbreeders who take out agricultural insurance will benefit from an increase in the state premium subsidy.

Spain’s Ministry of Agriculture, Fisheries and Food has increased agricultural insurance by €60 million to raise the state subsidy on the total cost of the premium by 10 percentage points to 40 per cent.

Agricultural insurance is a key agricultural policy tool, especially in the current context of climate change, as it protects producers’ incomes.

The first insurance lines to benefit from this higher subsidy will be nuts, extensive arable crops, persimmon, wine grapes and fruit, among others.

The Minister of Agriculture, Fisheries and Food, Luis Planas, highlighted the key role of the Spanish agricultural insurance system as another tool that contributes to maintaining agricultural income and the viability of farms.

The budget increase for agricultural insurance is included in Royal Decree-Law 11/2022, approved by the extraordinary Council of Ministers on 25 June, which extends and approves new measures to support the agricultural sector in the current context of rising costs on farms.

The news follows reports that Spain will reportedly lower the VAT on gas from the current 21 per cent to 5 per cent so that citizens will see a reduction in the amount they have to pay this coming winter.

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