Agricultural insurance: supply and demand are low
Ana Duarte of F. Rego suggests that establishing a catastrophe fund is essential to address the current challenges in the agricultural insurance market.

Latest news and stories about agriculture in Portugal for expats and residents.
Ana Duarte of F. Rego suggests that establishing a catastrophe fund is essential to address the current challenges in the agricultural insurance market.

Azul Empírico, a subsidiary of the Davidson Kempner fund, has proposed a significant investment of 203 million euros to acquire the agricultural company Herdade da Comporta, indicating a strong interest in the agricultural and real estate market in the region.

Every day, justice declares insolvency for 17 individuals, with commerce and workshops leading the charge in business bankruptcies. The crisis is also escalating in sectors such as hospitality, catering, and agriculture, indicating a broader economic downturn.

The recent severe weather in Portugal has devastated agricultural operations, particularly in the West region, but this damage has not yet impacted food supply or prices in supermarkets. However, as major distributors may need to source food from other regions, consumers could eventually feel the financial effects.
Update: Kristin has no impact on food supply, but it may affect consumers' wallets
Officials say the storm named Kristin has not yet altered supermarket availability or retail prices. However, significant damage to agri-food operations in the West — some destroyed or unable to resume production for months — means major distributors may need to source supplies from other regions, potentially pushing up costs for consumers.

A study by the Potsdam Institute for Climate Impact Research (PIK) indicates that by 2100, between one third and 50% of land currently suitable for grazing will lose its capacity due to rising temperatures, highlighting significant implications for agriculture and environmental sustainability.

Portugal faces a mixed outcome from the EU–Mercosur trade agreement. Export-oriented sectors such as wine, olive oil and cheese see expanded market access to Argentina, Brazil, Paraguay and Uruguay as growth opportunities, while domestic meat and rice producers fear increased competition, downward price pressure and quota-driven market disruption. The deal thus creates winners and losers within Portugal’s agricultural and food industries, highlighting the need for safeguards, support measures and sectoral adaptation strategies.
Update: The trade agreement between the European Union and Mercosur is due to be signed this Saturday. The impending signature has intensified debate in Portugal: wine, olive oil and cheese sectors are positioning to capture growth in the four South American markets, while meat and rice producers renew warnings about heightened competition, downward price pressure and quota effects. Stakeholders are pressing for concrete safeguards, transitional support and clear implementation timetables to mitigate adjustment costs and protect sensitive domestic producers.

The decision was approved by the Council of Ministers

The support is intended to combat “challenges with greater robustness” due to bad weather and the war in Iran, explained Luís Montenegro. The executive meeting took place at the Ovibeja fair in Beja.

The Government has approved a support package for agriculture that includes 20 million euros to compensate for the rise in costs for fertilisers and energy, and 60 million euros for irrigation infrastructure affected by “adverse weather phenomena”.
The measure will primarily cover the Algarve and Alentejo regions.

The “exceptional financial support”, intended to rehabilitate agricultural infrastructure affected by bad weather, was described by Montenegro as “support for irrigation”.

The Government, through Prime Minister Luís Montenegro, has announced an 'exceptional' financial support package of 60 million euros for the rehabilitation of irrigation systems affected by adverse weather events, as well as 20 million euros intended to compensate agricultural production systems most exposed to the effects of rising fertiliser and energy costs. 'These are actions...'

60 million euros per year in direct support for viticulture could disappear, warns Luís Carneiro at the Ovibeja agricultural fair. A meeting of the PARCA is demanded to discuss losses and measures.

José Luís Carneiro spoke to journalists on the sidelines of his visit to the Ovibeja agricultural fair in Beja.

For the National Confederation of Agriculture, the Government cannot drag its feet and must support farmers for the losses caused by the severe weather.

The Minister of Agriculture says he has already asked the European Union, more than once, for a support plan to respond to the rise in fertiliser prices.


A group of farmers has launched a public petition against the relocation of the Air Force firing range from Alcochete to Alter do Chão, warning of the potential environmental and economic damage caused by the infrastructure.
This year, the Institute for Nature Conservation and Forests received 326 reports of alleged damages.

This year, the Institute for Nature Conservation and Forests received 326 reports of alleged damages.

The president of the CAP says he does not understand the Government's inaction following storms and the conflict in the Middle East. Regarding labour reform, Álvaro Mendonça e Moura believes there is a “political element” preventing the UGT from approving it.

The Minister of Agriculture called today in Luxembourg for the European Commission to adopt a plan for fertilizers and their respective financing, as the sector faces a significant rise in fertilizer prices.

The Minister of Agriculture advocated for an increase in farmers' income and stressed that Portugal does not accept that retired farmers be excluded from accessing income support.
The Minister of Agriculture appealed this Monday in Luxembourg for the European Commission to adopt a plan for fertilisers and their respective financing, as the sector faces a significant rise in fertiliser prices. “We also addressed the issue of fertilisers; it is essential that the European Commission moves forward not only with a plan, but...”

The areas of Parâmio, Zeive, Carragosa, Salsas, and Salselas could be severely affected by the chestnut gall wasp, which attacks the tree's buds and leaves, preventing it from bearing fruit.

The Portuguese government is advocating for a unified European strategy to provide financial support for the acquisition and production of fertilisers.

The Financial Instrument for Innovation and Competitiveness (IFIC) has opened a tender with a budget of 20 million euros to support modernisation projects for agricultural activity affected by the storms, with applications open until the end of May.
The Financial Instrument for Innovation and Competitiveness (IFIC) has opened a tender aimed at micro, small and medium-sized enterprises engaged in primary agricultural production, providing a non-repayable grant of 50% of the total eligible investment value.

Modernisation projects for agricultural activities affected by storms, flooding, and flash floods will be eligible for non-repayable support covering half of the investment made, up to a maximum of 1.2 million euros. The call for applications was published this Monday through the Financial Instrument for Innovation and Competitiveness (IFIC), managed by the Banco de Fomento.

The association dedicated to promoting dried fruits is organising the fifth edition of the Portugal Nuts Congress.
