The scheme is open to agricultural producers of 39 selected crops, including wheat, triticale, rye, barley, oats, rapeseed, peas, sunflower, and corn, who were directly impacted by the severe drought. To qualify for aid, farmers must have lost more than 30% of their crops from the autumn of 2023 through the summer of 2024 due to drought.
Compensation will be provided in the form of direct grants. The maximum aid amount is EUR 200 (RON 1,000) per hectare for a total loss, not exceeding 30% of eligible costs.
The scheme will be in place until December 31, 2024.
State Aid Rules and Justification
EU state aid rules allow member states to support the development of certain economic activities only under specific conditions. In this case, the Commission found the aid necessary, proportionate, and with a limited impact on competition and trade between member states. The commission approved the scheme under EU state aid rules, and found that the scheme is necessary and appropriate to compensate Romanian farmers for the losses incurred due to this “extreme climatic event”.
Impact on Romanian Agriculture
Romania is the country with the highest number of farmers in the EU, amounting to almost 3.5 million. It is the biggest producer of cereals in the EU and the largest producer of sunflower seeds, according to the commission. This aid package is expected to provide much-needed relief to Romanian farmers, many of whom have been struggling to cope with the effects of the drought.
EU Aid for Other Affected Regions
The Commission's approval of this aid scheme comes amid a growing trend of extreme weather events across Europe. The commission recently approved a €1 billion scheme to support Italian farmers affected by the flood and landslide events in May 2023 in the regions of Emilia-Romagna, Tuscany and Marche. This scheme will provide investment support aimed at restoring the agricultural production potential damaged, and compensate companies active in primary agricultural production, processing and marketing of agricultural products.
The commission found that the floods and landside events in the regions were classified as a “natural disaster”, and that the scheme serves only to compensate for the damages effectively caused by the events.
Supporting Romanian Farmers
The EU's commitment to supporting Romanian farmers affected by drought is a significant step towards ensuring the resilience of the agricultural sector in the face of climate change. The aid package will provide much-needed financial assistance to farmers, enabling them to recover from losses and continue to produce food for the country and the EU. This support reflects the importance of the agricultural sector to the Romanian economy and the need to address the challenges posed by extreme weather events. The EU's decision to provide state aid is a positive signal that it is committed to supporting its member states in tackling the challenges of climate change and ensuring the sustainability of the agricultural sector.
