Farmers struggling for state support

The support promised by the government to farmers affected by the fires has not yet been delivered, despite the Minister of Economy and Territorial Cohesion promising to expedite the process, offering a 10-day deadline. The funding at stake is intended to "enhance agricultural production potential and provide exceptional support to farmers to compensate for losses, even through undocumented expenses," up to a maximum of €10,000.

To Nascer do SOL, the general secretary of CAP (Portuguese Farmers' Confederation), Luís Mira, states that this amount has not yet reached any farmer and questions the way the process is being handled: "So far, nothing has been done. Where is the money? Which farmer received the money? Not one that I know of. What we see is that practice differs from political rhetoric."

"When people make a promise, they need to know they can keep it. These promises were made following a Council of Ministers meeting when everyone is in a tizzy, and they have no idea how it can be implemented," said Luís Mira, adding that CAP made no promises, and three days later, farmers donated food to others, reaching nearly 500 tons, "because the animals have to eat every day."

The CAP secretary-general also criticizes the way support requests are made. "The CCDRs [Regional Coordination and Development Commission] pushed the process to the City Councils, and the City Councils to the Regional Councils. It's true that everything depends on the regions. The Alentejo CCDR does one thing, the Central CCDR another, and the Northern CCDR another—in other words, each has its own modus operandi."

And he goes further in his accusations: "What knowledge do the CCDR and the City Council have to assess the losses? Of course, some more sensible councils have already approached the local association asking for help. So the State is incapable of addressing animal health and has had to delegate this task to organizations scattered throughout Portugal, and now they're going to assess the losses? And with what criteria? So a farmer from Trás-os-Montes will receive a different amount than one from the Center or Alentejo? None of this makes sense."

According to Luís Mira, the problem becomes more complex when municipalities delegate this responsibility to Parish Councils. "So, a government that says it's going to fight bureaucracy creates more problems the first time it has something to do with it? If I have three plots of land belonging to three parish councils, do I have to go through them individually?" he asks.

It should be noted that when Castro Almeida announced the support, he also stated that, in cases of losses under €10,000, the government would not "go around asking for documents" to support those affected by the fires. "We won't be asking for documents. Based on witness testimony, on-site inspection, with someone from the City Council or the Regional Coordination and Development Commission, we'll determine the amount and pay it immediately," the official stated.

But he later said that an application form would need to be completed and submitted to the City Councils. The municipalities, in turn, "forward the application to the CCDR, and the CCDR evaluates and pays in 10 days or less," he emphasized.

When questioned by Nascer do SOL, only the CCDR Norte responded by the time this edition went to press and referred explanations to the decree-law of August 24, which states that municipalities must collect information to report to the Regional Coordination and Development Commission and "in a joint inspection, technicians from the municipalities and the CCDR, IP, which has territorial jurisdiction, define the estimated value of the damage resulting from the fires."

Another headache for CAP concerns the fact that farmers in the Alandroal, Aljustrel, and Castro Verde areas affected by the fires were left out because the fires occurred earlier. In other words, the Council of Ministers' resolution only provides for compensation to farmers affected between 00:00 on July 26, 2025, and 23:59 on August 27, 2025. "It seems like we're in a different country, but this is what's in effect. I can't imagine them not correcting this; however, it was ANEPC [National Emergency and Civil Protection Authority] and the Prime Minister who decided this, which is discriminatory," accuses CAP's secretary-general.

Losses yet to be determined

Although the losses have not yet been calculated, the Minister of Economy and Territorial Cohesion has already admitted that this year's fire losses are already "significantly higher" than last year's, exceeding 30 million euros. "In the northern region, the losses are much greater than the fires of 2024. The number of farmers is much higher—I believe there were a thousand or so last year—and the volume involved is also significantly higher than last year. I would say, confidently, three, four, five times more than last year. We're talking about tens of millions of euros," said Castro Almeida.

These figures led the National Confederation of Agriculture (CNA) to draw attention to the fact that €10,000 per farmer is insufficient to address situations in which stables, warehouses, agricultural facilities and machinery, or permanent crops have burned down, and also called for the creation of storage areas for the collection of burned wood, in order to avoid speculation on wood prices or non-transparent transactions in the purchase and sale of burned wood.

Committed catering and hotel industry

AHRESP (the Portuguese Hotel, Restaurant, and Similar Business Association) has also expressed its concern about the impact of the fires in the most affected regions, with direct and immediate repercussions on tourist accommodation, restaurant, and similar businesses. "The scourge of the fires has led to cancellations of reservations and business closures, with significant drops in accommodation occupancy rates and a reduction in demand across all tourism activities, seriously compromising the sustainability of businesses and jobs," it states.

Ana Jacinto, secretary general of AHRESP, told our newspaper that the sector has three available grants, but contrary to the association's expectations, the non-refundable funds are intended only to restore production capacity. In other words, it implies that there has been concrete damage to infrastructure. This, in her opinion, precludes most business owners from this option. "I'm not saying it hasn't happened, but we're not aware of these situations. The only situations I'm aware of are reservation cancellations," she said, recalling that several industry officials suggested reservations ranging from 99% to 3% after the fires.

Therefore, the overwhelming majority of entrepreneurs will have to resort to the so-called treasury support line. Even so, Ana Jacinto admits that she has special conditions, as it provides interest-free, repayable support of up to 25% of the previous year's turnover, capped at €300,000, over a seven-year period, including a two-year grace period. It's true that this represents more debt for companies, and she warns that they "are already more than indebted."

He adds: "We are very concerned about the sector, particularly the restaurant sector, because in the case of accommodation, we have concrete data that indicates things are going well, especially since there has been a price adjustment, which is easier to do, and we also have to factor in international tourism. However, we cannot forget that this has to do with overnight stays, with guests. The restaurant sector is in a different situation, especially those far from tourist flows, which are facing great difficulties. It's not the same across the country, because it's very asymmetrical, and we have to add the problems arising from all the debt they have, because the COVID lines were debt, because inflation hasn't stopped rising, because raw materials haven't stopped increasing."

Ana Jacinto says she's still waiting for the government's campaign to be launched later this September, along with the promotion already launched by Turismo do Centro, to strengthen the promotion of the affected areas. "The idea is for people to be able to return to these places because there's been a natural loss of confidence, because the territory is devastated and has caused damage inherent to the reservations that were canceled, especially in the sense that people who had booked but stopped going, and future reservations that were scheduled to take place but also stopped," she emphasized.

AHRESP emphasizes that summer is traditionally the most important period for tourism, especially in low-density areas. "Without rapid and effective responses, the fires could compromise not only the 2025 peak season but also the future attractiveness of affected destinations, with serious consequences for the local and national economy," it states.