Requirements to obtain priority exploitation qualification
The Law 19/1995, of July 4, on the Modernization of Agricultural Exploitations, in its explanatory statement, states that the modernization of agricultural exploitations, necessary for the adaptation from agriculture to changes in the PAC and to the multilateral agreements adopted, it must consider the restructuring of production.
The Law uses the concept of priority exploitation as a basic reference for action, defined by objective criteria, so as to ensure the economic viability of exploitation and justify the granting of public support in a preferential way.
Based on the insufficient size of many farms as one of the problems that condition their viability in the future, the Law proposes measures to boost the markets for land, to allow easier access to ownership and leasing. In this way, tax incentives are proposed for the transfer of rural properties by purchase, succession or donation, in the case of constitution or consolidation of priority exploitations, while special incentives are contemplated in the full transfer of farms, or when they are carried out for the benefit of young farmers.
Requirements for granting priority exploitation qualification
The requirements for granting priority exploitation qualification, in the case of an individual, are included in article 4 of the Law and are the following:
- Be between 18 and 65 years old.
- Be a professional farmer.
The status of professional farmer requires, according to the transcribed legal precept, the fulfillment of three requirements: -ownership of a farm; -That the income received from agricultural activities or other complementary activities exceeds 50% of the total, as long as the part of the income coming directly from the agricultural activity is not less than 35% of their total income; -That the volume of employment dedicated to agricultural or complementary activities is equal to or greater than half of an Agricultural Work Unit.
- Have sufficient agricultural training.
- Be registered in the corresponding RETA.
- That the farm is previously registered and updated in the Register of Agricultural Exploitations.
- That makes possible the occupation of at least one agricultural work unit.
- That the unit work income obtained from it is equal to or greater than 35% of the reference income and less than 120% of this, the reference income being the indicator relative to gross wages not farms in Spain. Law 19/1995, of July 4, on the Modernization of Agricultural Exploitations, in its sixth final provision, establishes that the Ministry of Agriculture, Fisheries and Food will periodically determine the amount of the reference income in accordance with the provisions of section 12 of article 2 of this Law.
This precept provides that it will be carried out in accordance with the provisions of the European Union regulations and taking into account the salary data published by the National Institute of Statistics . Thus, it is set for the year 2021 in the amount of 30,622.23 euros. For the year 2022, the reference unit income has been set at 31,502.93 euros, effective as of January 1.
The classification of a farm as a priority implies a series of relevant advantages for agricultural and livestock companies, since it entails a series of tax advantages and benefits in loans, exemption from the payment of certain taxes and gives priority when accessing certain subsidies such as the modernization of farms.
It may interest you: “Department specialized in Agrarian Law ”