The initiative, detailed in the Official State Gazette (BOE), is part of a government package designed to support primary sectors following severe damage caused by adverse weather. The primary goal is to restore the operation and viability of farms and operators that have suffered significant material and economic losses.
Of the total 100 million euros, 75 million will subsidize up to 15% of the principal of loans granted by the Official Credit Institute (ICO). The remaining 25 million will cover guarantees provided by the State Agricultural Guarantee Company (SAECA), which are essential for obtaining these credits.
ICO loans, with a repayment period of up to 15 years and potential grace periods of up to three years, have a maximum subsidy of 15,000 euros per beneficiary. This structure aims to alleviate immediate financial burdens and allow for economic reorganization among those affected.
It is essential that applicants have an insurance policy contracted within the Agricultural Insurance Plan or, failing that, commit to contracting one during the year of application submission and the following year.
To access this financing, applicants must meet several specific requirements. Farm holders must derive at least 50% of their income from agricultural activity. Additionally, it is mandatory to have an agricultural insurance policy or commit to contracting one in the year of application and the subsequent year. The subsidized loan must be guaranteed by SAECA, with its cost covered by a specific 25 million euro aid line.
Applications can be submitted starting from April 8, 2025, and the deadline will extend until September 30, 2027. This ample period aims to ensure that all potential beneficiaries can prepare their documentation and formalize their requests. The aid will be granted directly in order of application and is considered de minimis, subject to European State aid regulations.
