Agriculture, Estonia, Financial Services, Funds, Markets and Companies

Estonian Prime Minister Juri Ratas said  that if at present direct support amounts to 177-178 euros per hectare, equaling 66% of the EU average, it is set to rise to 200 euros per hectare by 2022 and to 215 euros per hectare, or 80% of the EU average, by 2027. 

EU leaders struck a deal on the union's new budget and a fund for economic recovery on the night between Monday and Tuesday, according to which Estonia stands to get 6.8 bn euros under the EU's long-term budget for 2021-2027. Besides, it is about to get over 1.5 bn euros in support from the plan for restarting the economy over the next three years, in addition to the main budget.

According to the original proposal, the size of direct agricultural support per hectare for Estonia would have increased from 66% to 76% of the EU average by the end of the budget period. In the negotiations, an even better result was achieved with Estonia to reach the level of 76% of the EU average in direct agricultural support not in 2027, but already in 2022.

Leveling off will continue beyond 2022, and by 2027 direct support for Estonian farmers will reach 80 % of the EU average. 

Ratas added that the agreement also contains the possibility to assign additional support from the rural development fund on top of the direct support already allocated, and it is the government's wish to definitely reach at least the level of Poland by the end of the upcoming budget period. The level of direct farm support in Poland is 83 % of the EU average.

For the next budgetary period 1.35 bn euros has been earmarked in direct support for Estonian farmers, 35 % more than in the current period. In addition, 638 mln euros will be added in support for rural life under the long-term budget and 64 mln euros under the plan for restarting the economy.