Paris, September 04 (QNA) - France has announced the allocation of more than EUR 1 billion to support the agricultural sector, which was severely affected by the heatwaves and drought that hit the country during the summer.

French Minister of Agriculture Annie Genevard said at a press conference today that the funding was aimed at supporting farms' liquidity and preventing bankruptcies, as well as restarting production. She noted that EUR 1 billion in new funding had been allocated as part of a major support effort.

She added that the cost of the National Solidarity Compensation mechanism (ISN) was estimated at around EUR 520 million, pledging to accelerate the disbursement of payments and compensation.

Under the government plan, the funding will be primarily channeled through the National Solidarity Compensation mechanism to compensate for crop losses caused by exceptional weather conditions, alongside compensation for uninsured losses and tax exemptions for the hardest-hit farms.

The plan also includes establishing a fund to support the continuity of agricultural activity, increasing support for social security contributions and accelerating the disbursement of Common Agricultural Policy aid, providing farmers with around EUR 420 million in liquidity. It also extends assistance for the purchase of fertilizers and agricultural diesel fuel. (QNA)