EU approves €90 mn Italian aid for agricultural production

(ANSA) - ROME, MAR 25 - The European Commission has given the green light to a €90 million state aid scheme launched by the Italian government to support primary agricultural production, processing, and marketing of agricultural products. According to the European Commission, the aid will be provided in the form of "direct grants and subsidized services," benefiting an estimated 250-300 recipients, 99% of whom will be micro, small, and medium enterprises (SMEs). The Commission deemed the aid "necessary and appropriate" to encourage investment and support businesses in the agricultural sector at the local level. It also considered it "proportionate" to its purpose, given its time-limited nature.
    The aid will run until December 31, 2029, and, according to the Italian government, aims to reorganize local agricultural supply chains to create better market relationships and benefits for the sector in terms of income, resilience, sustainability, and innovation. Specifically, the program will enable businesses within a defined "food district" to identify their needs and receive support through a "district contract" signed with the Italian Ministry of Agriculture, Food, Forestry, and Tourism Policies.
    This approval comes as Brussels prepares for the post-2027 Common Agricultural Policy (CAP). EU officials are working on a second simplification package to be presented in the spring, aiming to further reduce bureaucratic burdens for small farms.
    Following last year's streamlining efforts—introduced in response to farmer protests that shook the European capital—the new measures are expected to include the suspension of annual performance checks and lump-sum payments for businesses.
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