Droughts and costs hitting Spanish farms

Production costs and droughts were the biggest issues facing the Spanish farming industry, but the sector remains competitive despite the challenges it faced

Alex Black
clock • 1 min read
Droughts and costs hitting Spanish farms

A report on the state of the Spanish agricultural sector from CaixaBank showed the prolonged drought which affected much of the Iberian Peninsula in 2022 has continued so far in 2023, impacting top soils and providing poor conditions for crops.

Spanish yields

As a result, crop yields - which were already severely down last season - were estimated to have fallen further this year.

See more: Scottish farmers expected to face 'severe' flooding and disruption from Storm Babet

According to the preliminary figures for agricultural area and production, the production of winter cereals was estimated at 9 million tonnes in 2023, compared with 14.4mt in 2022 and 19.3mt in 2021. Summer crops were less affected by the ravages of climate change.

However, Spanish exports were still performing well compared to its main European rivals. The value of exports continued to increase, although volumes declined.

Europe

Compared to its European neighbours, the Spanish agricultural sector was characterised by a substantial number of small farms; more than half have five hectares or less, with 94 per cent being owned by individuals who are usually the head of the farm.

Watch now: Scottish farmers count cost of severe flooding

However, the sector was becoming more concentrated with fewer but increasingly larger and more productive farms. According to the 2020 agricultural census, farms of 100ha or more - although they account for only 6 per cent of total farms - represent 58 per cent of the utilised agricultural area and almost 30 per cent of total production.

2021 Massey Ferguson 8S.225 EFD7

2021 Massey Ferguson 8S.225 EFD7

VIEW ADVERT
£POA

2021 Massey Ferguson 8S.225 EFD7

2021 Massey Ferguson 8S.225 EFD7

VIEW ADVERT
£POA

2021 Massey Ferguson 8S.205 EXD7

2021 Massey Ferguson 8S.205 EXD7

VIEW ADVERT
£POA

More on Farm Business

School meal policy shift could offer once-in-a-generation £600m boost for British farmers

School meal policy shift could offer once-in-a-generation £600m boost for British farmers

A new report has urged the Government to commit to its procurement pledge in order to put more fresh produce in schools

clock 12 September 2025 • 2 min read
Succession conversations can no longer be avoided

Succession conversations can no longer be avoided

As tax rules tighten and economic pressures mount, Willem Puddy from Old Mill takes a look at a practical approach to succession planning

Alex Black
clock 12 September 2025 • 3 min read
Defra issues FETF grants as record 9,500 farm businesses apply

Defra issues FETF grants as record 9,500 farm businesses apply

Gov says response to animal health award is delayed owing to volume of applications

clock 12 September 2025 • 1 min read