Brussels, 10 April 2025
The European Commission has approved, under EU State aid rules, a €35 million French scheme to support farmers in the Artois-Picardie basin in the Hauts-de-France region as they transition to crops and practices that sustainably protect water resources.
Agriculture in the Artois-Picardie basin is mostly intensive and requires a significant use of pesticides and nitrogen fertilisers, which poses a challenge to water resources. The scheme is based on an experiment targeting 13 areas characterised by a significant deterioration in water quality.
Under the scheme, which farmers can join until 31 December 2027, the aid will take the form of direct grants to compensate the additional costs and profits lost following the change in agricultural practices. The scheme is based on five-year contracts between the Artois-Picardie Water Agency and small and medium-sized enterprises (SMEs) active in the primary agricultural production sector. This will provide an incentive for farmers to (i) replace some crops with others that need less pesticides and fertilizers; and/or (ii) use less pesticides and nitrogen fertilisers on their existing crops.
The Commission assessed the French scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to encourage farmers to adopt measures to better preserve water resources and to develop their activity more sustainably. In addition, the Commission considered that the scheme is proportionate, as it is limited to the minimum necessary, and has a limited impact on competition and trade between Member States. On this basis, the Commission approved the French scheme under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.116275 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.