Farmers' organizations: Farmers give bread to the new government

Today, August 18, representatives of the Cooperation Council of Farmers' Organizations (LOSP), the Farmers' Saeima (ZSA), and the Latvian Association of Agricultural Cooperatives (LLKA) met with Prime Minister Laimdota Straujums to discuss the importance of state support in Latvian agriculture.

Until now, state support for agriculture has been paid out in several programs: national subsidies, support for breeding in livestock farming and additional state direct payments (which since 2013 have been called transitional state support (TSA)). Currently, there is a risk that in the future, subsidies and transitional state support will not be granted in the amount allowed by the European Commission guidelines until 2020.

During the negotiations, we called on the Prime Minister to maintain state support (national subsidies, support for breeding) at least at the 2013 level in the coming years and to provide for transitional state support (TSA) in accordance with the guidelines of the European Commission, so that Latvian farmers can compete with farmers from other European Union Member States.

LOSP representative, Chairwoman of the Board of the Association of Agricultural Statutory Companies, Aija Balode: " As a result of the negotiations, the figures for the transitional state support payments for 2015 and 2016 were outlined. However, they are smaller than the farmers had calculated in their business plans and this can in no way satisfy those working in the livestock sector. Of course, negotiations on the payments will have to be continued with the new government. Thanks to the insistence of the Minister of Agriculture J.Dūklavas, Prime Minister L.Straujuma promised the necessary increase for excise-free diesel fuel. I invite farmers to listen carefully to the pre-election promises and evaluate them.

Juris Lazdins, Chairman of the Association "Farmers' Council": "During the meeting with Prime Minister Laimdota Straujums, we agreed on the operational action of the Ministry of Agriculture so that farmers would be granted all the liters of excise-free diesel fuel planned for this financial year as soon as possible. 100 liters of excise-free diesel fuel are not enough to process one hectare, but this year fuel is especially important because in the spring we had to re-sow the frozen winter crops with spring crops. Farmers have to harvest the new crop, cultivate the fields and sow winter crops, and they cannot wait for the new government's decision, so it must be made immediately. It is also important for farmers to know the government's decision on state support so that they can plan the cash flow on the farm."

Uldis Krievārs, member of the board of the Latvian Academy of Sciences: "Overall, we are satisfied with the outcome of today's negotiations on state support payments for the next two years. Although these decisions will be made by the next government, we expect continuity of decisions from politicians, because only in this way is it possible to plan and ensure the long-term development of agriculture. When deciding on support, of course, the current economic growth indicators and prospects of Latvia and the entire European Union will also have to be taken into account."

Armands Krauze, LOSP Board Vice-Chairman for EU Affairs and External Relations: "In the conversation with the Prime Minister, we managed to fulfill the promises regarding the allocation of the necessary amounts for excise-free fuel immediately and without waiting for the Saeima elections and a new government. However, the understanding of the promises made in the past to the Prime Minister and the farmers' organizations was different, as well as the amount offered was very significantly different. The current Prime Minister's offer does not ensure that additional direct state payments fully compensate for the low direct payments that the then Prime Minister Valdis Dombrovskis achieved in Brussels. The payments in 2015 and 2016 will compensate so that the amount of payments does not decrease, but in no way will bring Latvia closer to the level of farmers in the Baltic countries (Estonia, Lithuania). LOSP member organizations are not satisfied with the result of today's negotiations."