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LV Farmers disappointed by government's hesitation in guaranteeing support stability
Yesterday, September 16, the Cabinet of Ministers conceptually supported the information report prepared by the Ministry of Agriculture, which, among other things, provides for 50 million euros for transitional state support (PPVA) for the future planning period, however, no final decision was made, leaving it to the next government to decide. The Association "Farmers' Parliament" and the Latvian Agricultural Cooperative Association express disappointment at such a government hesitation to guarantee the stability of support at such a difficult time. The decision was urgently needed by farmers, so that at a time when the purchase prices of agricultural products are falling dramatically, farmers could rely at least on this stable state support.
Juris Lazdins, Chairman of the Association "Farmers' Council": “The right to pay transitional state aid to the sector in the negotiations on the European Union's Common Agricultural Policy reform on the multi-annual budget was one of the most significant successes, which was achieved as a result of great efforts. It is commendable that a conceptual decision on support for farmers was made yesterday, but it is absurd that it does not create any stability and sense of security for us about the future. What point would it have been in that case to fight for the opportunity to pay additional state aid if the state is not ready to provide it financially. The government had such an opportunity yesterday, but it was not used. It is not at all clear why so much time and discussion should be devoted to such basic matters. If the next government, when forming the budget, chooses not to support farmers, from 2015 to 2017 farmers will receive smaller support payments than before. In that case, the public self-praise of the parties, presenting the results of the negotiations on the Common Agricultural Policy reform as a huge achievement, and the current conceptual support may turn out to be empty and useless.”
Indulis Jansons, Chairman of the Board of the Latvian Association of Agricultural Cooperatives: "In relation to the PPVA, the government had to make a very specific decision, because it is even more important now, taking into account the consequences of the Russian food embargo for farmers. Almost all agricultural products currently have low purchase prices, next year the milk quota regime also ends – the coming years are not expected to be particularly bright for agriculture, and the stability of state support is very important. The government should remember that agricultural enterprises in the regions are among the largest employers and taxpayers.”
We remind you that on August 18, representatives of farmers' organizations met with Prime Minister Laimdota Straujums to discuss the role of state support in Latvian agriculture. During the meeting, an agreement was reached to maintain state support at least at the 2013 level and to provide for transitional state support in accordance with the European Commission's guidelines, so that Latvian farmers can compete with farmers from other European Union member states. The Prime Minister's promise in August did not ensure that the PPVA would fully compensate for the low direct payments, but at least in 2015 and 2016 they would not decrease.