Economy

Farmers under pressure as agricultural diesel prices soar 45%

The price of agricultural diesel is putting the farming sector under renewed pressure. Fuel has reached 1.405 euros per litre, 45.6% more than at the end of February, when it stood at 0.96 euros. In response, COAG has requested an urgent meeting with the Ministry of Agriculture to seek new support measures and prevent rising costs from jeopardising upcoming farming seasons.
Farmers under pressure as agricultural diesel prices soar 45%

Agricultural diesel prices rise 45%. Photo: COAG

FILLING A TRACTOR COSTS 132 EUROS MORE

The impact is being felt directly on farms. Filling a 300-litre tractor tank currently costs 421.50 euros, compared with 289.50 euros in February, meaning an additional 132 euros. COAG says the extraordinary aid currently in force does not cover the full increase and calculates that farmers continue to bear an extra cost of 22.7 cents per litre after applying the maximum compensation provided for.

The farming organisation warns that this situation comes at an especially delicate time, with the autumn cereal sowing season approaching. Spain has nearly 4.93 million hectares of rain-fed grain cereals, and COAG fears that high fuel costs will reduce the profitability of land preparation and sowing work. Its secretary-general, Andrés Góngora, warns that the rising cost could also end up affecting cereal production, animal feed and the entire agri-food chain.

COAG CALLS FOR AID TO BE EXTENDED

This situation is compounded by the fact that the support measures currently in place end on 30 September and, according to the organisation, no published regulation yet guarantees their continuation. COAG is calling for agricultural diesel subsidies and reduced taxation to be extended until the end of the year, as well as for the current limit of 20 cents per litre to be raised or removed so that compensation better reflects the actual increase in fuel prices.

The organisation is also calling for the aid to be applied directly when refuelling through a professional agricultural card, rather than being claimed afterwards, and is demanding more information about distribution margins. COAG considers it urgent to act before campaigns such as the olive harvest and cereal sowing begin, warning that maintaining these costs could jeopardise the activities of farmers and livestock breeders.