New Agriculture Minister Joins Forces with Farm Groups to Tackle Crisis of High Costs and Low Cereal Prices

Castilla y León’s new agriculture minister Joaquín Antonio Pino has pledged to address the cereal sector’s crisis through dialogue with farming groups, marking his first major move in the role. The sector faces a double squeeze of soaring production costs and stagnant grain prices, according to regional officials and industry representatives.

Pino met with representatives of the Organizaciones Profesionales Agrarias (OPAs) on June 16, 2026, his first day in office, to outline an approach centered on collaboration. “We will seek effective solutions to the cereal industry’s dire situation,” Pino told the groups, emphasizing the need for joint efforts to mitigate rising input costs and depressed market returns. The comments reflect growing urgency among farmers, who have long warned of unsustainable margins.

The sector’s struggles are quantified in regional data: Castilla y León accounts for nearly 40% of Spain’s cereal output, with wheat and barley prices averaging €150–€160 per tonne in early 2026—down 12% year-over-year—while fertilizer costs climbed 28% in the same period, according to the Asociación Española de Cooperativas Agrarias (AEC). Pino’s focus on dialogue comes as protests by farming collectives intensified in May, with blockades of key highways and calls for direct government intervention.

Why is this crisis worse than past downturns?
Unlike previous years, when farmers relied on EU subsidies to offset losses, current support mechanisms are €300 million short of covering 2026’s estimated €1.2 billion in expected shortfalls, per a June 2026 report by the Ministerio de Agricultura, Pesca y Alimentación. Pino’s commitment to “efficient solutions” may hinge on accelerating pending subsidies and renegotiating trade agreements that limit export revenues, particularly for barley and maize.

The OPAs, which include Asaja, COAG, and UPA, have demanded direct cost subsidies and a price-floor guarantee for cereals. Pino’s office declined to specify immediate policy tools but noted that “structural reforms” would require cross-party cooperation in Spain’s regional parliament. The next critical test will be the July 10 meeting of the Consejo Asesor Agrario, where the minister is expected to present a preliminary action plan.

How does this compare to other regions?
While Castilla y León’s cereal crisis mirrors challenges in France and Romania—where grain farmers also face €50–€80/tonne price drops—Spain’s situation is exacerbated by its reliance on export markets, particularly for feed grains. The EU’s Common Agricultural Policy (CAP) reforms, set to take full effect in 2027, may offer long-term relief but provide little immediate support. Pino’s emphasis on dialogue contrasts with France’s direct income guarantees for farmers, a model some OPAs have pressed him to adopt.

Industry analysts warn that without intervention, Castilla y León could see 15–20% fewer planted acres in 2027, reversing decades of expansion. The region’s Junta de Castilla y León has allocated €50 million in emergency funds, but farming groups argue this is insufficient. Pino’s ability to secure additional resources will depend on his success in rallying both regional and national political support—a process that could take months.

What happens next?
The timeline for concrete measures remains unclear, but sources close to the OPAs expect:

• A draft subsidy package by August 2026, targeting fertilizer and fuel costs.
• Trade negotiations with the EU to ease export barriers, particularly for barley.
• Legislative proposals in late 2026 to reform Castilla y León’s agricultural tax structure.

Pino’s first 100 days will be critical in determining whether the sector’s decline stabilizes or accelerates. “The window for action is narrow,” said Asaja president Luis Miguel Fernández, adding that “without urgent measures, we risk losing entire generations of farmers.”