8 million for cheaper irrigation water in the Canary Islands: key points for farmers

Key data

Canary Island farmers who obtain irrigation water through desalination, wells or galleries bear a structural energy surcharge that does not exist on the mainland. The Royal Decree 733/2026, published on 18 September 2026, responds to this imbalance with a direct subsidy of 8 million euros to the Autonomous Community of the Canary Islands. The objective is to equalize the price of agricultural water on the islands with that of the rest of the national territory, fulfilling the mandate of article 14 bis of Law 19/1994 on the Economic and Tax Regime of the Canary Islands.

What does this regulation establish?

Royal Decree 733/2026 regulates two distinct matters:

• Direct subsidy to the Canary Islands: 8 million euros are granted to the Autonomous Community of the Canary Islands to compensate for the energy surcharge borne by farmers when obtaining irrigation water through desalination, well extraction and galleries. The aid is channeled through the Department of Agriculture, Livestock, Fisheries and Food Sovereignty, which distributes the funds among the final beneficiaries.
• Amendment to RD 1159/2020: The execution deadline is extended for various works and actions to improve the socioeconomic environment of the nuclei adjacent to the Entrepeñas and Buendía reservoirs, in Castilla-La Mancha, managed by the Water Agency of Castilla-La Mancha, O.A.

The subsidy to the Canary Islands responds to a prior legal mandate: article 14 bis of the Law 19/1994, on the Economic and Tax Regime of the Canary Islands, which obliges the State to compensate for the water surcharge of the archipelago to guarantee the competitiveness of the island agricultural sector against the mainland.

Economic and operational impact

The energy surcharge for water in the Canary Islands is a structural reality: desalinating seawater or extracting it from wells and galleries consumes far more energy than conventional irrigation systems on the mainland require. This differential translates directly into higher operating costs for the Canary Island farmer.

With this subsidy, the State assumes this differential, so that the final price paid by the Canary Island farmer for irrigation water approaches what their mainland competitors pay. This has a direct impact on the profitability of agricultural operations in the archipelago, especially in intensive crops with high water demand such as tomatoes, bananas or greenhouse crops.

Additionally, the amendment to RD 1159/2020 extends the execution deadline for works on the Entrepeñas and Buendía reservoirs in Castilla-La Mancha, which affects the planning of water infrastructure projects in that autonomous community, although it has no direct economic impact on Canary Island farmers.

Who does it affect?

• Farmers in the Canary Islands who use water from desalination facilities for irrigation of their operations.
• Farmers in the Canary Islands who extract water from wells or galleries for agricultural use.
• Department of Agriculture, Livestock, Fisheries and Food Sovereignty of the Government of the Canary Islands, as the managing body and distributor of funds.
• Water Agency of Castilla-La Mancha, O.A., regarding the amendment to the execution deadline for works on the Entrepeñas and Buendía reservoirs.

Mainland farmers and those from other island autonomous communities that do not depend on desalination, wells or galleries for irrigation are not affected.

Practical example

A farmer in Tenerife who manages a banana plantation and obtains all his irrigation water from a desalination plant currently pays a price per cubic meter significantly higher than a farmer in Murcia with access to surface water or transfer water. This differential is precisely the "surcharge" covered by this subsidy.

Thanks to RD 733/2026, the Department of Agriculture, Livestock, Fisheries and Food Sovereignty of the Canary Islands will receive the 8 million euros from the State and distribute them among eligible farmers. The Tenerife farmer must submit his application electronically to that Department, providing documentation that proves the use of desalinated or well water for agricultural irrigation. Once the aid is approved, the amount received compensates partially or fully for the energy surcharge borne during the subsidized period, directly improving the margin of his operation.

What should farmers do now?

1. Verify if you are a beneficiary: Check that your agricultural operation in the Canary Islands uses water from desalination, wells or galleries for irrigation. These are the only water sources subsidized by this decree.
2. Contact the regional department: Contact the Department of Agriculture, Livestock, Fisheries and Food Sovereignty of the Government of the Canary Islands to learn about the application procedure, deadlines and required documentation.
3. Prepare electronic processing: The application is made exclusively electronically. Make sure you have a digital certificate or equivalent identification system to operate with the regional administration.
4. Gather supporting documentation: Prepare proof of consumption of desalinated water, wells or galleries and their use for agricultural irrigation, as these will be necessary to prove the right to aid.
5. Follow official calls: Although the decree enters into force on 18/09/2026, the specific distribution among beneficiaries is managed by the Department. Stay alert to official publications from the Government of the Canary Islands to learn about specific deadlines and conditions.

Official source

Consult complete regulation in official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-19422