Spain's Farmers Face Ruin as Diesel Hits €1.40 a Litre

Spain's agricultural diesel price has surged to €1.405 per litre on average, a 45.6% jump since late February. Filling a 300-litre tractor tank now costs €421.50, up from €289.50 just months ago. The price spike follows rising energy costs linked to the conflict in Iran. For farmers across Spain, the timing could not be worse. The cereal campaign—the season that demands the most machinery—is about to begin. "This is devastating," said Francisco, a farmer from Ciudad Real, after paying €1.588 per litre at the pump. He used to pay around €1 per litre just six months ago. The problem extends beyond individual farmers. Félix and Vicente, two young entrepreneurs in Aragón who provide machinery services to farmers, say they may have to raise their hourly rates. "Without fuel, we cannot go into the fields. It is essential," Vicente said. **Aid Ends September 30** An emergency government subsidy for agricultural diesel expires on September 30. The aid covers up to 70% of the price difference, capped at 20 cents per litre. If it is not extended, farmers will pay an additional 9.2 cents per litre starting October 1. The COAG farmers' union has requested an urgent meeting with the Ministry of Agriculture. It wants the aid extended until at least the end of the year and the 20-cent cap revised. **Cereal Farmers Hit Hardest** Spain has 5.75 million hectares of grain cereal, with 4.93 million in dryland areas. The diesel price increase adds between €7.15 and €10 per hectare in fuel costs. Across all dryland cereal fields, that means €35 million to €49 million in extra spending. Some farmers expect costs to rise even higher—up to €70 or €80 more per hectare. ASAJA, another farming organization, estimates that an average farm consuming 15,000 litres of diesel per year now spends about €24,000 annually, compared to €12,000 in 2021. **Nationwide Concern** The issue has sparked protests across Spain. In March, Madrid farmers warned of €4,000 in additional annual costs. In Castilla y León, diesel prices exceeded €1.50 per litre in some areas in April. COAG Secretary General Andrés Góngora warned that if farmers cannot afford to plant, the problem could affect cereal production and the entire food supply chain. The sector now faces two uncertainties: how high diesel prices will go, and what support will remain after September 30.