The Department of Agriculture, Food and the Marine (DAFM) has reminded farmers about a public consultation which is currently underway on state aid rules for the EU agricultural sector.
The European Commission is seeking opinions on a review of rules on exemptions for small amounts of aid (de minimis aid) in agriculture.
The EU Agricultural de minimis Regulation exempts small amounts from state aid control as they are deemed to have no impact on competition and trade in the single market.
Member states can currently grant support to the agricultural sector of up to €20,000 per beneficiary over a period of three fiscal years without prior notification for commission approval.
If a member state has a central register at national level to register de minimis aid, a higher ceiling applies, of €25,000 over a period of three fiscal years.
State aid
The commission is now revising the regulation in response to increasing inflationary pressure in the sector.
It is proposing to adjust the threshold for small amounts of aid to inflation and to also increase the national caps, which are calculated based on the value of agricultural output.
The draft amendments include increasing the maximum de minimis ceiling per company over three years, from €25,000 to €37,000, to account for inflation.
The maximum aid amount would be calculated over a period of three years instead of three fiscal years, in line with general de minimis rules.
The commission is also proposing to improve transparency by introducing a mandatory de minimis register.
It said that this will reduce administrative burden on farmers who currently use a self-declaration system, particularly small and medium-sized farmers.
The commission said that the proposed amendments will widen the possibilities for member states to provide support to farmers in a “simpler, faster, more direct and efficient manner”.
The revision will also prolong the regulation until 2032, the commission added.
All citizens, organisations and public authorities are welcome to contribute to this consultation through the EU Commission website.
The closing date for submissions is Sunday, July 21, 2024