EU clears Spanish 165-million-euro fertilizer aid for farmers

The European Commission has decided not to raise objections to the Spanish aid scheme METSAF, an extraordinary direct-grant programme worth 165 million euros designed to compensate farmers for the rise in fertilizer costs caused by the crisis in the Middle East. The decision, adopted on 23 July 2026, was published in the Official Journal of the European Union (C series) on 21 August 2026 under reference C/2026/4535 (aid number SA.123896).

The scheme is a modification of the earlier regime SA.122723 (2026/N) and is framed as a sectoral development measure. It is financed through Real Decreto-ley 7/2026, of 20 March, which approves the Comprehensive Plan for Response to the Middle East Crisis, together with ORDEN APA/568/2026, which sets out the adaptations and specifications of the aid for the agricultural and fisheries sectors.

Scope and beneficiaries

The aid is aimed at crop and animal production, hunting and related service activities, and is managed by the Ministerio de Agricultura, Pesca y Alimentación, based at Paseo de la Infanta Isabel 1, 28014 Madrid. The scheme is designed to offset the higher input costs that farmers face as a result of the regional crisis.

• Budget: 165,000,000 euros overall
• Form of aid: direct grant
• Intensity: 70%
• Duration: until 31 December 2026
• Objective: sectoral development

Legal basis and procedure

The measure rests on the legal framework of Real Decreto-ley 7/2026, of 20 March, which establishes the Plan Integral de Respuesta a la Crisis en Oriente Medio, complemented by ORDEN APA/568/2026 covering the agricultural and fisheries aid set out in articles 46, 50 and 51 of that decree. A draft amendment to the decree is also cited as part of the legal basis.

The publication follows the standard procedure under Articles 107 and 108 of the Treaty on the Functioning of the European Union, in which the Commission assesses whether notified aid is compatible with the internal market. Because no objections were raised, the scheme can be implemented as notified.

Impact

For Spanish farmers, the clearance means the extraordinary compensation can be deployed before the end of the year, easing the pressure of higher fertilizer prices on production costs. The decision also confirms that the measure is considered compatible with EU competition rules, giving legal certainty to the granting authority and to the beneficiaries who will receive the direct grants.

Source: Official Journal of the European Union, C series, C/2026/4535, 21 August 2026, notices (official reference: C/2026/4535, aid number SA.123896).