• The de minimis regulation in the agricultural sector will cease to apply on 31 December 2027. A review of the regulation is planned before this deadline.
• The changes contemplated include extending the maximum de minimis limit per company over three years, as well as creating a registry that will avoid administrative tasks for farmers.
• In view of this review, the European Commission has made a survey available to the public, which can be completed until July 21.

De minimis aid in the agri-food sector, or small State aid, refers to small amounts that Member States can grant in the European Union (EU). These aids are generally used in times of crisis and do not require approval from the European Commission (EC) because they are considered to have no impact on competition and trade within the internal market.

Currently, Member States can grant aid to the agricultural sector worth up to €20,000 per beneficiary over a period of three fiscal years. If a Member State has a national central register for de minimis aid (currently, such state registers are voluntary for Member States), up to €25,000 can be granted over a period of three fiscal years. In addition to these maximum limits per beneficiary, each EU Member State has a national maximum amount (the so-called "national cap") that cannot be exceeded, in order to avoid any potential distortions of competition.

Changes to the de minimis regulation

The de minimis regulation in the agricultural sector will cease to apply on December 31, 2027. A review of the regulation was planned before this deadline, but it has been accelerated in the face of rising inflationary prices in the agri-food sector. Therefore, the EC has brought forward the following changes:

1. The increase in the maximum de minimis limit per company over three years, which would increase from €25,000 to €37,000 , to account for inflation.
2. The adjustment of national ceilings , which are calculated based on the value of agricultural production. The current rules take into account the 2012-2017 reference period for this calculation. Now, this period has been extended to cover the 2012-2023 period, allowing for the increase in the value of agricultural production, particularly in recent years, to be taken into account, thus extending the national ceiling for all Member States.
3. The maximum aid amount will be calculated over a period of three calendar years instead of three fiscal years.
4. The introduction of a mandatory register of de minimis aid at national or European level to increase transparency and reduce the administrative burden for farmers, given that they currently use a self-declaration system and will no longer have to monitor compliance themselves (currently, such central registers are voluntary for Member States).

Survey

Following the changes to this regulation, the EC launched a public consultation on June 7th inviting all interested parties to comment on the proposed amendments to the "De Minimis Regulation in the Agricultural Sector." All interested parties can respond to this consultation until July 21, 2024 .

In addition to the consultation, the draft proposal will also be discussed in meetings between the Commission and Member States, ensuring that EU countries and stakeholders have sufficient opportunities to comment on it.

The Commission intends to adopt the amendments to the de minimis agricultural regulation as soon as possible, taking into account the comments received from Member States and stakeholders.

Further information on state aid in the agricultural sector can be found on the dedicated website .