Farmer's views wanted as review of state aid takes place
Current de minimis rules for the agriculture sector allow exemptions from state aid control for small aid amounts as they are deemed to have no impact on competition and trade in the single market.
The EU Commission is holding a public consultation on a review of rules on exemptions for small amounts of aid (de minimis aid) in agriculture.
Current de minimis rules for the agriculture sector allow exemptions from state aid control for small aid amounts as they are deemed to have no impact on competition and trade in the single market.
The commission is now revising the agricultural de minimis regulation to react to increasing inflationary pressure in the sector.
It is proposing to adjust the de minimis threshold to inflation and to also increase the national caps.
It also proposes to improve transparency by introducing a mandatory de minimis register, which aims to reduce administrative burden on farmers who currently use a self-declaration system.
All citizens, organisations and public authorities are encouraged to contribute to this consultation on the commission's website, up to July 21.
Following its last revision in 2019, member states can currently grant support to the agricultural sector of up to €20,000 per beneficiary over a period of three fiscal years without prior notification for commission approval.
If a member state has a central register at national level to register de minimis aid, a higher ceiling applies of €25,000 over a period of three fiscal years.
Besides these ceilings per beneficiary, each EU member state has a maximum national amount for such support (a so-called ‘national cap'), in order to avoid any potential distortion of competition.
The agricultural de minimis regulation is set to expire on December 31, 2027.
The draft amendments include the following changes:
- Increase of the maximum de minimis ceiling over three years, from €25,000 to €37,000, to account for inflation;
- Adjustment to the ‘national caps', which are calculated based on the value of agricultural output. The current rules take into account the reference period 2012-2017 for this calculation. This reference period would be expanded to 2012-2023;
- The introduction of a mandatory central register of de minimis aid at national or European level.
