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Agriculture: EU approves EUR 400 million Romanian state-aid scheme for farmers affected by severe drought

November 27, 2024

The European Commission on Thursday approved, an EUR 400 million (RON 2 billion) Romanian scheme to compensate farmers for damages suffered due to the severe drought in the period between September 2023 and August 2024, according to a press statement released by the commission on Thursday.The scheme is open to agricultural producers of 39 selected crops (such as wheat, triticale, rye, barley, oats, rapeseed, peas, sunflower and maize) that were directly affected by the severe drought. To benefit from the aid, the agricultural producers must have lost more than 30% of their autumn 2023 - summer 2024 crops as a result of the drought.Under the scheme, the aid will take the form of direct grants. The maximum amount of aid is EUR 200 (RON 1,000) per hectare for a 100% loss, not exceeding 30% of the eligible costs. The scheme will run until December 31, 2024.The commission found that the scheme is necessary and appropriate to compensate Romanian farmers for the losses incurred due to this extreme climatic event.Furthermore, the commission found that the scheme is proportionate, as it is limited to the minimum necessary, and has a limited impact on competition and trade between member states. On this basis, the commission approved the Romanian scheme under EU state aid rules.    

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