This Thursday, farmers and ranchers in the Community of Madrid once again mobilized against the rise in the price of agricultural diesel, which is causing an increase in production costs and, therefore, threatening the viability of many farms.
One of the attendees was Cipri, a livestock farmer, who has made clear the high price they are paying and its possible consequences: “If we don’t produce, you are not going to eat.” This is what he bluntly warned for the media ‘Telemadrid’, describing this increase as “shameful”: “today taking this tractor out to the street costs us around 250 euros more per day working. Multiply it by 10 days, 2,500 by 20 days, 5,000 euros more diesel in a month and a half just because of this increase.”
But that’s not all. As if that were not enough, the sector is facing an increase in the price of fertilizers, which “have risen twice in price”: “We are talking about them being worth 300 euros per ton and right now it is practically 500 euros.” Thus, if you add that agricultural diesel has risen 66%, the verdict for Cipri is clear: “you cannot work in these circumstances. It is better to leave the tractor stopped and wait for this situation to pass because what you are seeing is pure and simple speculation and usury.”
“The diesel that was sold to us was already purchased 6 months ago”
For Cipri, like for many other ranchers and farmers, this sharp increase in fuel prices is unjustified and responds to mere speculation: “The diesel that has been sold to us was already purchased 6 months ago.”
Thus, he has pointed out tax collection as the reason for it: “The VAT that has been collected, the hydrocarbon tax that has been collected in these 20 days, the State has to be this happy every time it says ‘no to war’. But for me it has been wonderful, because the collection it has done is brutal.”
In the same terms, he has criticized that the Government of Spain, for the moment, has not adopted any measure. It was yesterday, Thursday, when the Minister of Economy, Carlos Body, announced that they are preparing a royal decree law to deal with the effects of the war in the Middle East, which will include fiscal measures as well as specific aid for the rural and road transport sectors.
However, the minister did not detail any measure or the exact date of approval, stating only that “the priority is to close the text as quickly as possible, in the coming days so that it is prepared for approval.” An intention that, for Cipri, is insufficient: “While Portugal and other countries have already taken measures a few days ago, here in Spain we are still going on television and saying, ‘No, if we have it ready, we have it ready’, but in the meantime, cash in.”
In this situation, this rancher has urged to make a “historic demand in Europe” for professional diesel, while defending that a tax reduction is not only possible, but could even be beneficial for the State coffers.
“‘The thing is that if we lower taxes on hydrocarbons and VAT on professional diesel, we will collect less.’ Lie. Because if transportation costs less and agriculture costs less, the product in the market will cost less. If the product in the market costs less, people will be able to buy more. And every time people buy in the store they are already paying VAT,” he says, denouncing that VAT is paid on everything. “We pay VAT to produce, we pay VAT to produce, we pay VAT to sell, and we pay VAT to buy,” he concludes.