International Internet Magazine. Baltic States news & analytics
Monday, 30.03.2015, 01:18
Cutting agricultural subsidies will increase food prices in Estonia
The opposition party issued a statement, noting that the Reform Party’s proposal demonstrates their economic ignorance, lack of respect towards agricultural enterprises and their attitude towards development in the rural areas. The Reform Party seems to forget that direct subsidies are mostly consumer subsidies and cutting them would sooner or later mean a significant price growth for consumers, read the statement.
“Just as elsewhere in Europe, 90 per cent of farmers in Estonia will also not be able to make ends meet without direct subsidies paid in the framework of the European Common Agricultural Policy,” said the chairman of the party Jaanus Marrandi.
He noted that the area subsidies paid in Estonia per hectare are already 2-3 times smaller than those paid in the old European Union Member States and paying approximately a total of 750 million kroons of promised additional direct subsidies is crucial for rural entrepreneurs to remain competitive.