European Commission allocates $103 million emergency fund to support farmers affected by extreme weather

The European Union member states have endorsed the European Commission’s proposal to allocate €98.6 million from the agricultural reserve to directly assist farmers in Spain, Croatia, Cyprus, Latvia, and Hungary. These funds are meant to counteract the adverse effects of extreme weather events and natural disasters experienced since spring 2024.

Spain is set to receive €68 million as part of this exceptional aid, with Hungary getting €16.2 million, Croatia €6.7 million, Latvia €4.2 million, and Cyprus €3.5 million. This financial support aims to compensate for the production and income losses suffered by farmers in these countries. National authorities can further supplement this aid with up to 200% of national funds.

The national authorities are tasked with distributing these funds starting in October and ensuring that the farmers are the ultimate beneficiaries. The five beneficiary countries must also report to the Commission by June on the execution of these measures. This includes the criteria for awarding individual aids, the expected impact of the measures, monthly payment forecasts until the end of September, and the level of additional support provided. The report must also detail measures taken to prevent market distortion and overcompensation.

Farmers in the affected countries have faced significant economic losses due to extreme weather conditions. Spain experienced a notable drought due to a lack of rainfall and extreme heat during the summer of 2024, which was followed by severe storms causing exceptional rainfall and devastating floods in late October and early November. Cyprus dealt with scarce rainfall and high temperatures in the first half of 2024, affecting cereal, olive, and fruit and vegetable production. Latvia’s agriculture was impacted by a mix of low winter temperatures, spring frosts, and heavy summer rains, while Croatia and Hungary suffered from extreme heat and droughts affecting the production of corn, sunflowers, soybeans, sugar beets, fruits, potatoes, and wine.

This aid package is part of the Common Agricultural Policy (CAP) for the period 2023-2027, which includes an annual agricultural reserve of €450 million to help farmers manage market disruptions or exceptional phenomena affecting agricultural production or distribution. Given the increasing frequency of adverse weather events, the Commission has emphasized the need to strengthen risk management tools and encourage their broader adoption across the EU, along with proactive measures to address underlying causes and enhance the resilience of farms in the medium term.