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Ministry of Agriculture not satisfied with financing Latvian farmers are expected to receive in next EU planning period

BC, Riga, 22.07.2020.Print version
The Ministry of Agriculture is not satisfied with the decisions of the European Council on the European Union's (EU) multi-annual budget funding for Latvian farmers in the 2021-2027 planning period, as Latvian farmers will have a much lower amount of support than farmers from other EU countries, reported LETA.

The ministry acknowledged to LETA that even with a small increase in funding, Latvian farmers, compared to farmers in other EU member states, will still have much lower EU support, reaching only 82% of the EU average in 2027.

The Ministry of Agriculture pointed out that thus also in the next planning period Latvian farmers will be working in unequal conditions of competition compared to farmers of other member states, although the prices of agricultural raw materials, services and technical support are at the same level throughout the EU. The international market and the purchase prices of agricultural goods are also the same for all member states.

The Ministry emphasized that with the decision of the European Council, Latvia will not have reached the average EU level either in direct payments or in rural development funding. During the negotiations, Latvia has managed to slightly reduce the planned reduction in rural development funding initially proposed by the European Commission (EC), instead of the previously planned reduction of 15.3%, the reduction will be 12%, which means EUR 118 million less in funding compared to the current programming period.

However, the Ministry of Agriculture drew attention to the fact that part of the EUR 750 bn from the European Economic Recovery Fund is also planned for Latvia's rural development. On the EU level, EUR 7.5 bn has been allocated to rural development, distributed proportionally to all member states. For Latvia, this will be EUR 86 mln. 

''Unfortunately, it can be concluded that Latvia, despite the slight increase in funding, compared to the previous programming period, will still be among the countries that will receive the lowest direct payments to support farmers," said Minister of Agriculture Kaspars Gerhards (National Alliance).

As reported, more than EUR 10 bn will be available for Latvia in the coming seven years as the EU adopted its multiannual budget and the recovery fund.

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