Investment in the modernisation and adaptation to climate change of agricultural holdings

The project

According to the National Institute of Statistics, agricultural production contributed 0.7% to the Balearic Islands GDP in 2020. This scant contribution to the economy of the archipelago, which is heavily outsourced, is due to the insularity of the conditions under which the farms of the islands have to compete, which involves additional production costs that must be compensated by improving productivity.

Furthermore, it should be noted that 87% of the land in the Balearic Islands comprises agricultural and forestry land. The agricultural sector is therefore responsible for the management of a very substantial percentage. It is therefore important to try to ensure that farmers have access to the subsidies available to help them adapt to climate change and introduce technologies and practices that will help to increase the productivity of their farms, and at the same time promote environmental sustainability.

This project will provide the Balearic Islands Agricultural and Fisheries Guarantee Fund (FOGAIBA) with €8,600,000 to provide subsidies for agricultural holdings that make investments aimed at improving their competitiveness and addressing climate change mitigation and adaptation.

In a context of economic contraction such as the one currently being experienced, this initiative is essential to guarantee the viability of many farms and to facilitate the implementation of investments in the future that will contribute to the stimulation of the economy of the Balearics.