EU clears €500M Spanish farmer aid for fertiliser costs

The European Commission has raised no objections to a €500 million Spanish State aid scheme, METSAF, granting extraordinary support to farmers and livestock producers for the rise in fertiliser costs triggered by the conflict in the Middle East. The decision, adopted on 28 May 2026, was published in the Official Journal of the European Union (C series) on 27 August 2026 under reference C/2026/4551.

The scheme is a direct grant covering crop and animal production, hunting and related service activities across Spain, with a maximum aid intensity of 70% and a duration running until 31 December 2026. The granting authority is the Ministerio de Agricultura, Pesca y Alimentación (Ministry of Agriculture, Fisheries and Food), based at Paseo de la Infanta Isabel 1, 28014 Madrid.

Legal basis and background

The measure is anchored in ORDEN APA/xxxx/2026, which sets out adaptations and specifications of the agricultural and fisheries aid contemplated in Articles 46, 50 and 51 of Real Decreto-ley 7/2026 of 20 March 2026, approving the Comprehensive Response Plan to the Middle East Crisis. The Commission assessed the scheme under Articles 107 and 108 of the Treaty on the Functioning of the European Union.

The approval is part of a broader EU response to the economic fallout of the Middle East conflict on primary production. It follows the Commission’s temporary State aid framework for the crisis, which allows member states to compensate producers for input-cost increases.

Key figures of the scheme

• Budget: €500,000,000 overall
• Intensity: 70%
• Duration: until 31 December 2026
• Form of aid: direct grant
• Beneficiaries: Spanish crop and livestock producers
• Aid number: SA.122723

Related Spanish measures

The METSAF approval sits alongside other Spanish aid cleared under the same framework. A separate scheme (SA.122724, published 26 August 2026) grants €54 million to cover the price of agricultural diesel consumed by producers due to the conflict, also at 70% intensity until end-2026. A further modification (SA.123896, published 21 August 2026) adjusts the original fertiliser regime with an additional €165 million budget.

Why it matters

For Spanish farmers and livestock producers, the approval unlocks a substantial public support line to absorb fertiliser price shocks at a time when input costs remain elevated. The 70% intensity and the end-2026 deadline give producers a defined window to claim compensation, while the Commission’s no-objection decision confirms the measure complies with EU State aid rules.

Source: Official Journal of the European Union, C/2026/4551, 27 August 2026, C series (official reference: SA.122723).