EU approves expanded aid for French farms

The European Commission approved an additional 212 million euros on 30 October for a French aid program targeting agricultural and aquaculture businesses affected by rising non-road diesel (GNR) prices. This brings the total authorized budget to 424 million euros, with the support now covering eligible fuel expenses until the end of December 2026.

Extension of an existing program

The approval relates to a modification of a French program already approved in June. It allows the government to extend its financial support in response to the rising costs of fuel used by farms and related businesses. The 424 million euros represents an authorized budget, not a sum already distributed to recipients.

Modification adds new months to coverage

The original program, approved in June, covered GNR purchases made between May and August 2026. The new approval adds September, October, November, and December to the eligible period. While the budget is now doubled, the extension is not a new program but a modification of the existing one.

Rate for new months not yet confirmed

The initial aid, approved in June, offered direct subsidies at a rate of 0.15 euros per liter of GNR for purchases between May and August. The October announcement confirms the extended period and budget but does not specify a new rate for the added months. Applying the original rate to purchases in the new period would be premature without updated guidelines from France.

Aid targets primary agricultural producers

The measure is intended for companies involved in the primary production of agricultural or aquaculture products. It aims to address rising energy costs linked to the Middle East crisis. The Commission noted in June that GNR prices had increased by 74% between February and May 2026, adding an average cost of 0.41 euros per liter compared to 2025 prices.

Legal basis for the aid approved

The Commission reviewed the extension under Article 107, paragraph 3, point c), of the Treaty on the Functioning of the European Union. It also considered the temporary state aid framework for the Middle East crisis, adopted in April 2026. The approval confirms the aid is necessary, appropriate, and proportionate, without harming trade or the common interest.

Regulatory references for the aid

The modifying decision must be published in the European register of state aid under the number SA.124997, after confidentiality concerns are addressed. The original June decision was listed as SA.123666. These numbers help distinguish the two stages of the aid program for producers' fuel.