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The PP proposes new aid to farms in crisis and a reduced VAT when they are not profitable

MADRID, 3 May.

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The PP proposes new aid to farms in crisis and a reduced VAT when they are not profitable


The PP has registered a bill in Congress to declare the food system as an "essential" strategic sector of the economy, which would imply a battery of measures that include new aid for farms in crisis and a reduced VAT when these are not profitable.

In the opinion of the Popular Group, the economic and social crisis derived from the pandemic has caused a "serious" impact on the economic results of agricultural holdings, which face, points out the PP, "constant" increases in factor costs of production "without finding an adequate remuneration in the sales of their products.

For this reason, the PP proposes a law that aims to provide the agri-food sector with "new and more effective" instruments that contribute to guaranteeing its essential strategic nature and is capable of guaranteeing the supply and food security of the Spanish population, especially in crisis situations.

In this context, the proposed law includes an article for the Government to enable annually aid for the owners of farms in those sectors in crisis because they are "seriously affected" in their economic results.

This crisis can occur due to high costs of production factors, such as prices received that are much lower than normal production costs, which put the sustainability of farms and their continuity in the production cycle at risk.

In another article of the proposal, the PP wants that as long as the conditions that entail a risk of cessation of activity due to loss of profitability derived from the excess production cost remain, the minimum permitted VAT rate will be applied to energy and purchases made by the producers of those products that they use in agricultural, livestock or forestry activities as agrarian 'inputs' and raw materials.

In addition, the 'popular' plead for greater monitoring of agricultural markets by the Ministry of Agriculture, Fisheries and Food in conjunction with the Ministry of Industry and the autonomous communities. They also propose creating specific early warning systems that make it easier for sectors and administrations and sectors to adopt preventive measures in the face of unforeseen economic, climatic, environmental, social or any other type of situation.

In order to have the capacity to deal with problems in the agri-food markets, and guarantee the proper functioning of the food supply chains, the Popular Group proposes to study the possibility of promoting, where appropriate, the constitution of strategic reserves of basic foods that are adequate to guarantee food security in the country.

They also propose reinforcing the viability of the Combined Agricultural Insurance System and increasing the protection of the insured; as well as the promotion of the development of agriculture that promotes the absorption of carbon dioxide.

Additionally, the bill includes measures to strengthen the negotiating position of producers in agricultural markets, where transparency is promoted, the incorporation of producers into cooperatives and other development and support measures for direct sales and that help reduce food waste.