The farmers and ranchers affected by the drought will be able to access credits to alleviate their losses that will be guaranteed by the Ministry of Agriculture and Fisheries, Food and Environment (Mapama), while the interest generated by these loans will be financed by the Junta de Castilla and Leon.
For this, this Wednesday the advisors of Economy and Finance, Pilar del Olmo, and Agriculture and Livestock, Milagros Marcos, have signed a collaboration agreement with 15 financial institutions to implement the management and payment of interest subsidy subsidies that generate the preferential loans that the holders of agricultural holdings of Castilla y León can sign.
These loans can be requested from the signatory entities after the urgent support measures to the agrarian sector that have adopted the Mapama and the regional government due to the drought that affects the current agricultural campaign.
According to Marcos, in statements collected by Europa Press, this aid line contributes to providing liquidity to agricultural holdings by rewarding one hundred percent of the interest to professional farmers, who contribute to the agrarian social security and with income from agricultural activities. they suppose more than 50 percent and that they have subscribed to an agrarian insurance and the 50 to those that do not have contracted a policy. In both cases, in addition, there must be a commitment to maintain agricultural insurance for the next three years.
However, the counselor has warned that those who do not have agricultural insurance but endow one before October may also benefit from one hundred percent financing. The aid may be requested until September 21. In total, for the almost 42,000 farmers and ranchers that will be eligible, a liquidity of 920 million euros will be enabled, of which 90 will be provided by the Board.
The agreements adopted on Wednesday will provide professionals in the field with the perception of regulated aid in Order AYG / 546/2017 that was published in the Official Gazette of Castilla y León (Bocyl) on June 30.
The loans that can be subsidized are those endorsed by the State Corporation of Agricultural Insurance (Saeca) under the terms established by the Ministry of Agriculture and Fisheries, Food and Environment in the Ministerial Order of May 29.
Thus, loans of up to 40,000 euros, with five years of duration, of which one will be a deficiency, will be made available. In this case, the State will be in charge of one hundred percent of the guarantees and the Junta de Castilla y León of one hundred percent of the interest, as long as the beneficiary is a professional farmer and has subscribed an insurance.
It also opens a deadline until October 15 to contract any type of agricultural insurance and have this consideration for the purposes of the coverage of interest and guarantees. If you do not have it, the bonuses will be 50 percent, both by the regional and state governments. So far 1,200 requests have already been registered.
The loan can reach 80,000 euros for holders of farms or members of associations that carry out their activity in the field of dairy production, swine, cunícula or fruit, and vegetables or those other sectors that could be incorporated by virtue of the ministerial order. The subsidy must be devoted mainly to fully or partially amortizing other credits that the applicant has in force. This type of loan will have ten years of amortization, of which one may be a deficiency.
As a novelty, a new loan modality of up to 60,000 euros with five years of duration and two years of grace will be enabled, and new sectors will be incorporated, such as hops, vineyards and extensive crops.
In the case of young people, one hundred percent of the guarantees and interest will be financed by the State and the Junta de Castilla y León, respectively, if they have an insurance, and 50 if they do not. In this case, the requirement of being a professional farmer with regard to income is not required.
In the Leon region of El Bierzo, especially hit by the weather, loans are also set up to 80,000 euros and will not require the condition of 50 percent participation in an agricultural activity in Income Tax, or Agrarian Social Security, that is, The requirement of being a professional farmer is not required.
The Governing Council of June 22 agreed to qualify the 2016-2017 agricultural season as an exceptional situation throughout the territory of Castilla y León, due to the adverse effects suffered by the agricultural holdings of the Community, following the extreme climatic conditions of the last months. At the same time, authorized the Ministry of Agriculture and Livestock to adopt measures in the form of lines of aid with which to minimize the effects that are triggering the situation of prolonged drought in the economy of many regions of the Community.
This decision of the regional executive has allowed the Ministry of Agriculture and Livestock to convene two lines of aid: one to ensure the supply of water to farms in an extensive regime of pasture use whose call was published on Monday in the Official Gazette of Castilla and Leon and can already be requested, and another, with which the interests generated by the preferential loans that farmers and ranchers hire to have the financial availability that allows them to face the new agricultural campaign with liquidity will be rewarded. The agreements that are signed today will streamline the management of this last aid.
ADVANCES OF THE CAP
All signatory financial institutions have also offered to anticipate, under preferential conditions, CAP payments in variable percentages that range between 80 and one hundred percent of the amount they received last year. This will mean some 720 million euros of liquidity for the sector.
They have also committed to advancing the payments of Agroseguro compensation from tomorrow after all the assessments have been expedited by express request of the Ministry of Agriculture and Livestock.
The entities with which the collaboration agreement has been signed are SpainDuero, Caja Rural de Salamanca, Caja Rural de Soria, Caja Viva Rural, Caja Rural de Zamora, Santander Bank, Banco Popular, Sabadell, Caixabank, Cajamar, Ibercaja, BBVA, Bankinter, Bankia and Abanca.
Regarding the petition for the appearance of the counselor requested by Ciudadanos to explain the process of granting aid, Milagros Marcos has shown herself to be favorable and has even assured that she already intended to do so, but she has asked to wait for “definitive data”.