Portuguese farmers demand €140 million to close aid gap with Spain
Three major agricultural associations — Portugal Fresh, COTHN and FNOP — have formally demanded a €140 million direct aid package for Portuguese farmers, citing a widening imbalance in public support compared to Spain. In a joint statement issued ahead of a delivery to the Portuguese Parliament and the Prime Minister’s official residence on 12 October, the groups called the current situation unacceptable, arguing that Portuguese producers face identical market conditions and production costs as their Spanish peers, yet receive far less government backing.
The trade deficit with Spain in fruit, vegetables and flowers reached €424 million between January and June 2026, a 20% increase from the same period last year. Exports fell 3.5% in value to €1.226 billion, while imports rose 4.2%, cementing Spain as the source of 57% of Portugal’s imports in this sector — worth €870 million — while receiving 37% of Portuguese exports, or €446 million.
The Confederação dos Agricultores de Portugal (CAP), which led the call for aid, says this gap stems from a stark difference in state interventions. Spain has committed over €1.1 billion in direct support in 2026, including a €500 million programme for fertilisers and a €0.20-per-litre subsidy on agricultural diesel. Portugal’s equivalent diesel subsidy stands at €0.10 per litre, with total fuel and fertiliser aid valued at just €70 million combined — including a €30 million crisis fund and a €40 million compensation package announced earlier in the year.
The associations also highlight Portugal’s recent €25 million fuel subsidy and targeted payments to smallholders — such as €1,050 annually for holdings over two hectares — as insufficient. CAP argues that even with €1.07 billion disbursed by September 2026 across agricultural, forestry and fisheries sectors — including advance EU payments and climate-related aid — the direct support for cost pressures remains structurally inadequate.
On 28 September, CAP’s members voted unanimously to demand the additional €140 million, framing the issue as a matter of survival. Without it, they warn, Portuguese farmers' investment, productivity and effort are being erased by Spain’s more aggressive policy response. The group plans to submit its formal request on 12 October — the very day the 2027 State Budget is tabled in Parliament — and has vowed that coordinated protest measures will follow if no response is delivered.
The Portuguese government has yet to respond publicly to the proposal. Regional governments, including Madeira, have contributed additional funds — such as €22 million — but industry leaders insist only national, targeted intervention can restore competitiveness. Analysts note that while the EU’s Common Agricultural Policy (CAP) provides a baseline, its flexibility allows member states to layer in national support — a tool Spain has used more extensively.
The pressure builds as storms Ingrid, Joseph and Kristin, which struck Portugal in early 2026, damaged crops and irrigation infrastructure — losses not fully compensated under existing schemes. With the 2027 budget under review, the outcome of this demand will shape the future viability of thousands of small and mid-sized farms across the country.
