This financial support comes in response to the crisis in the Middle East, which has led to a significant increase in fertilizer costs. Spain had previously informed Brussels of its intention to implement this support plan for agricultural sector companies.

The subsidies will be distributed as direct grants, with a maximum of €22 per hectare for non-irrigated land and up to €55 for irrigated land. These aids are intended to cover up to 70% of the cost increases resulting from the geopolitical situation.

The approval is part of the state aid framework reform introduced by the European Commission in April, which allows member states to mitigate immediate adverse effects on the most exposed companies while preserving fair competition in the single market.

Additionally, the Commission has announced plans to increase flexibility for funds from the Common Agricultural Policy (CAP) to release more aid for farmers. Proposals include redirecting European funds to bolster the agricultural reserve and modifying the CAP to introduce a new liquidity system, offering advance payments and promoting the use of bio-based fertilizers or their optimization.

These support measures are expected to last at least until the end of the year, although their final duration will depend on the crisis's progression.