• The amendments to the de minimis Regulation came into force last December and will remain in place until 2032.
• The limit per company is increased from 25,000 to 50,000 euros, and the "sectoral cap" is eliminated.

On December 10, 2024, the European Commission (EC) modified the agricultural “de minimis ” Regulation to adjust the limits of aid per company and at the national level.

This regulation, approved in 2013, exempts small-value aid from the scope of State aid control, as it considers that it has no impact on competition and trade in the internal market.

The modifications

The new amendment applies the following changes:

• The maximum "de minimis" limit per company over three years has been increased from €25,000 to €50,000, to reflect factors such as experience, market developments, sector-specific inflation in recent years, and inflation expected up to the expiration date.
• The adjustment of national ceilings , from 1.5% to 2% of each Member State's agricultural production. Furthermore, the reference period is extended from 2012-2017 to 2012-2023, which allows for the increase in the value of agricultural production in recent years to be taken into account.
• It eliminates the “sectoral cap,” which prevented states from allocating more than 50% of the national cap to the same product sector.
• It requires maintaining a central register of aid at the national or European level. This will increase transparency and reduce bureaucracy for farmers. Until now, farmers have had a self-declaration system, and central registration has been optional for Member States.
• Extends the regulations until December 31, 2032 .

The EC indicates that the new system is more efficient for farmers, as these aid measures will not need to be notified to the Commission or approved.

Background

Article108(3 ) of the Treaty on the Functioning of the European Union (TFEU) requires Member States to notify all State aid to the EC and to implement it only after approval. The EU Regulation authorizing State aid empowers the Commission to declare certain categories of State aid compatible with the single market and to exempt them from the notification obligation under the Treaty.

The "de minimis " agricultural regulation was last revised in 2019 and was due to expire in 2027. In May 2024, the EC launched a new review, taking into account factors such as inflationary pressure in recent years and high commodity prices, among others.

The process included a public consultation in June 2024 and meetings with Member States in July and October of the same year. During these meetings, numerous stakeholders called for an increase in the individual and national caps. They also requested greater flexibility to respond to market shocks and those caused by the increasing number of natural disasters due to climate change.