Minister of Agriculture requests from European Commission measures to minimize drought effects

The Portuguese Minister of Agriculture, Maria do Céu Antunes, requested a series of measures to minimise the effects of the drought in Portugal from the Agrifish council in Brussels, namely with regard to animal feed and drinking water.

"The measures that Portugal and Spain put forward for the European Commission’s appraisal with the aim of minimising the impacts this drought is having on the Iberian Peninsula are particularly relevant if we take into account that the situation is worsened by the high prices of raw materials for animal feed", the Minister stated.

Maria do Céu Antunes added that "we are talking about a scenario that poses a large number of farms at risks, not just because they may run out of pastures for their cattle to graze on, but also because they may no longer have the capacity to use animal feed". 

"As such, it is important to support livestock farmers in managing their cattle, as well as tending to the financial situation of farms under added financial pressure. And that is what we are trying to assure with the measures proposed today", she added. 

Measures put forward

The measures put forward were:

• Increase the percentage of direct payments in advance and rural development measures

• Enforce the force majeure clause, so as to:

o Introduce exceptions in crop diversification

o Allow pasture in fallow lands declared as such for crop diversification

o Revoke the percentage of lands of environmental interest. 

• Allow a new temporary and exceptional measure, using funds allocated to rural development to support farmers / livestock farmers most affected by the cost crisis and the effects of the drought

• Study specific measures to compensate farmers for the drought, under the Common Organisation of the Markets in agricultural products

• Gather the Expert Group referred to in the European Food Security Crisis Preparedness and Response Mechanism, in compliance with the Contingency Plan.

New instruments

Several Member States were sympathetic with the drought in Portugal and Spain and the European Commissioner for Agriculture Janusz Wojciechowski acknowledged the urgency of the situation and was receptive to analysing the proposals put forward and take the necessary immediate measures to support farmers on the Iberian Peninsula. He added that it is important for the CAP strategic plans to include initiatives that mitigate the effects of climate change.

To this end, the Minister of Agriculture noted that today she will meet with the European Commissioner to analyse the Portuguese CAP strategic plan, submitted to the Commission on 30 December 2021, which envisages concrete measures to create new risk management instruments, as well as how to improve managing resources, namely water. 

On the 22nd, Maria do Céu will meet with the European Commissioner for Cohesion and Reforms, Elisa Ferreira to discuss the importance of efficient irrigation systems, as this is a subject that has warranted the attention of the Portuguese Government. This was shown clearly in the study presented recently by the Ministry of Agriculture, "Irrigation 20|30 – Survey of the Potential to Develop Public Initiative Irrigation within a Decade." 

The Minister stated this study shows that "the adaptation to climate change and its effects implies adopting medium- and long-term public policies, that allow water to be stored and used more sustainably, stopping the physical and human desertification of rural lands".

Measures implemented

At the press conference, Maria do Céu Antunes recalled that Portugal already implements several measures to mitigate the effects of the drought and that new measures are being prepared to respond to producers’ needs, to wit:

• As for animal drinking water, food and crop status, the Ministry of Agriculture is following the evolution of the status of crops currently set by the Regional Directorates for Agriculture and Fisheries

• The notice PDR2020 is open until 1 April to support small investments in farming in vulnerable lands, which allows the funding, to around 70%, of investments relating to extensive grazing and water storage and distribution (water tanks, deposits, troughs, the recovery of tanks, pipes et …). A similar support initiative will open in the next few days, under PDR2020, for the remainder of national soil.

• Two credit lines are available to support farmers’ cash-flow: a short-term credit line with subsidised interest rates for all farmers, which envisages a greater top-up of interest rates subsidised (50 %) for farmers who hold the Agricultural Status, to an annual ceiling of €5,000 in loans; and a credit line set up the European Investment Bank /European Investment Fund, guaranteed by the Portuguese State, which includes financing a rolling fund on investment, with a 300-million-euro allocation.   

• The Ministry of Agriculture has created incentives on electricity generation to face the rising costs of energy and to contribute to the sector’s self-sufficiency and decarbonization: in 2021, it made 25 million euros available for the installation of photovoltaic panels in farms and 10 million euros for installing photovoltaic panels / solar collectors in Agroindustry; the applications for the purchase and installation of photovoltaic panels in farms were resumed on 7 February with a 10-million-euro allocation. 

• A new guaranteed credit line to support cash-flow costs for affected farmers and producers is being drafted.

• A Notice under Measure 3.4.2 of PDR2020 will be open by the end of February (initially set for 2.5 million euros but it was decided to boost it to 6 million euros) for the purchase and installation of photovoltaic panels in hydroponic farms.

• If the scenario of severe drought is confirmed, the Ministry of Agriculture will allow animals for biological production to have access to conventional feed. 

The Ministry of Agriculture has been monitoring the situation of drought in the country right from the start, in order to take the necessary measures to support Portuguese farmers. A meeting of the Drought Permanent Committee is scheduled for 1 March.