Agricultural insurance policyholders can claim up to 70% premium coverage

Real Decreto 849/2026, of October 21, has been published in the BOE (BOE-A-2026-21948), regulating the direct granting of subsidies to support policyholders within the Combined Agricultural Insurance System due to damages caused by the 2026 wildfires. This extraordinary measure responds to the devastating impact of recent fires, which have affected over 60,000 hectares of agricultural land across various Spanish provinces, including Huelva, Ávila, Toledo, and Madrid.

What changes

The regulation introduces two primary financial support mechanisms designed to mitigate the economic impact of the 2026 wildfire season. First, it establishes a subsidy aimed at reducing the cost of insurance premiums. Under this provision, the State will provide additional support to the existing Combined Agricultural Insurance System, allowing the total coverage of the premium cost to reach up to 70%. This threshold has been specifically chosen to align with European Union regulations regarding agricultural insurance and livestock production coverage for accidents and diseases.

Second, the Royal Decree introduces a direct support mechanism for primary sector workers. This is intended to cover damages that fall outside the standard scope of insurance, such as those resulting from deductibles (franquicias) or indirect losses. These indirect damages include the costs of removing damaged elements, disruption of commercial relationships, food chain disturbances, and distortions in the supply of inputs. By providing this secondary layer of support, the administration seeks to address the holistic economic damage caused by the fires, which often extends beyond the immediate destruction of crops or livestock.

Context

This Royal Decree is enacted in response to an exceptional environmental crisis. The 2026 season has seen a record number of "large fires" (gran incendio), defined by Royal Decree 716/2025 as those affecting more than 500 hectares of forest land. With 42 large fires recorded, the current situation doubles the recent historical average, necessitating extraordinary intervention by the public authorities.

The legal framework for this measure is multifaceted. It is issued in accordance with the regulations approved by Royal Decree 887/2006 (BOE-A-2006-13371) and complies with Articles 22.2.c) and 28 of Law 38/2003. Furthermore, the measure modifies Section 10 of the Plan published by the Resolution of December 23, 2025 (BOE-A-2025-27098). To ensure legal certainty and prevent fragmentation, the State is exercising its competence under Article 149.1.13.ª of the Spanish Constitution, which allows the State to set global guidelines and singular measures for specific economic sectors. This centralized management is crucial to ensure that all affected producers, regardless of their Autonomous Community, receive uniform treatment and to stay within the limits of European Union public aid regulations.

Who is affected and how

Agricultural Policyholders (Individuals and SMEs)
The primary beneficiaries are holders of policies within the Combined Agricultural Insurance System who have suffered damages to their agricultural or livestock activities due to the 2026 wildfires. This includes both individual farmers (autónomos) and small to medium-sized enterprises (pymes) operating agricultural holdings. These holders gain access to a significant reduction in their financial burden through the 70% premium subsidy and the potential for direct aid for non-insured damages.

Livestock Producers
Producers involved in livestock activities are specifically included, particularly regarding coverage for accidents and diseases. The measure is designed to protect the sustainability of the rural environment and the continuity of the food supply chain, which have been severely threatened by the scale of the 2026 fires.

Professional Organizations and Cooperatives
While not direct recipients of the subsidy, agricultural organizations, cooperatives, and professional entities are affected as they can act as legal representatives. Under Article 14.2 of Law 39/2015, these entities can facilitate the electronic processing of aid on behalf of their members, acting as a bridge between the producers and the Ministry.

An example

Consider an agricultural SME that holds a policy under the Combined Agricultural Insurance System. If the total cost of their annual premium is €10,000, and the existing insurance system and regional measures previously covered only a portion of it, this Royal Decree allows for a subsidy that can bring the total state/system support up to 70% of that premium. In this scenario, the effective cost of the premium for the producer could be reduced to as low as €3,000, provided they meet all the criteria established in the regulation. Additionally, if the fire caused a disruption in their supply chain that was not covered by the insurance policy, they may apply for the secondary direct aid mechanism to cover those specific indirect costs.

What to do and when

This regulation does not establish a fixed, universal deadline for all applicants within the text itself, as the specific application windows are typically determined by the administrative call for applications (convocatoria) issued by the Ministry. However, the following actions are necessary:

• Verify Policy Status: Ensure that your agricultural activity is covered under the Combined Agricultural Insurance System.
• Document Damages: Gather all evidence of damage caused by the 2026 fires, including both direct damage to crops/livestock and indirect economic losses (e.g., supply chain disruptions).
• Electronic Submission: Prepare to submit applications through the Ministry's electronic office. As per Law 39/2015, applications can be made directly or through a legal representative such as a cooperative or professional organization.
• Monitor Official Announcements: Keep a close watch on the Ministry's official communications for the specific opening and closing dates of the subsidy application period.

We recommend contacting the relevant department at BMC to evaluate your specific situation and ensure that your documentation meets the rigorous requirements for these extraordinary subsidies.