Business · Economy · 2 hrs ago
Spain proposes tax relief for farmers ahead of Madrid tractor protest
Spanish farmers and livestock breeders plan a tractor protest in Madrid on October 28.
They say rising energy and production costs, low prices for their goods, paperwork and possible cuts to EU farm funding are putting pressure on their businesses.
The government has proposed special tax reductions for agriculture in 2027, including a general 10% reduction in the taxable net income used to calculate income tax.
The proposal also includes reductions linked to purchases of agricultural diesel and fertilisers, whose prices have risen.
The government estimates the measures will reduce the income-tax base by about 860 million euros and could benefit 800,000 farmers and livestock breeders using the tax system known as modules.
The draft is now open for public consultation, while the protest is still planned; the farmers’ groups say an extension of the diesel discount is not enough.
Spain’s government has proposed tax reductions for farmers and livestock breeders in 2027, including a general 10% cut in taxable net income for agricultural activities.
The proposal also includes tax reductions linked to purchases of agricultural diesel and fertilisers.
The government estimates the measures will reduce the income-tax base by about €860 million and benefit 800,000 farmers and livestock breeders who use the objective-estimation system.
Farmers and livestock breeders plan to hold a tractor protest in Madrid on 28 October.
Their stated concerns include rising production costs, low farm-gate prices, possible cuts to European Union agricultural funds, trade rules and bureaucracy.
- Who
- Spain’s government and farmers and livestock breeders, including groups Asaja, Coag and Unión de Uniones.
- What
- The government proposed tax reductions for the agricultural sector in 2027 ahead of a planned tractor protest.
- When
- The proposal was announced on 21 October 2026, according to the article’s “yesterday” reference and publication date. The protest is planned for 28 October.
- Where
- The protest is planned for the streets of Madrid, Spain.
- Why
- The government says the measures aim to ease the effect of higher diesel and fertiliser prices on farm profitability. Protesters cite rising costs and other problems facing the sector.
Spanish government
Farmers and livestock breeders
Response to pressures
Spanish government
The government proposed tax reductions for 2027, including cuts linked to diesel and fertiliser purchases.
Farmers and livestock breeders
The groups are maintaining a Madrid tractor protest, saying the sector faces rising costs and other problems.
Farm support
Spanish government
The government estimates the measures will benefit 800,000 farmers and livestock breeders who pay tax under the objective-estimation system.
Farmers and livestock breeders
The main agricultural organisations consider the extension of the 20-cent-per-litre agricultural diesel discount insufficient.
The government opened a public-information period for its draft 2027 income-tax modules order.
The Ministry of Agriculture announced that the draft included exceptional tax reductions for farmers and livestock breeders.
Asaja, Coag and Unión de Uniones plan to hold a tractor protest in Madrid.
- General agricultural reduction
- 10% of taxable net income in 2027
- Diesel purchase reduction
- 35% in income tax
- Fertiliser purchase reduction
- 15% in income tax
- Estimated tax-base reduction
- About €860 million
- Potential beneficiaries
- 800,000 farmers and livestock breeders
- Protest date and place
- 28 October 2026, Madrid
What people are saying
includes exceptional tax reductions for farmers and livestock breeders
to alleviate the effects on the profitability of agricultural holdings of the increase in diesel and fertiliser prices as a consequence of the conflict in the Middle East
We produce your food; we deserve to make a living from our work.