The EU's multiannual budget offer is still unacceptable to Latvian farmers

On Thursday, June 11, representatives of the association “Farmers' Council” (ZSA), the Cooperation Council of Farmers' Organizations (LOSP), and the Latvian Association of Agricultural Cooperatives (LLKA) met remotely with Prime Minister Krišjānis Kariņš, to renegotiate the European Union's (EU) multiannual budget 2021-2027 and the Common Agricultural Policy (CAP).

Prime Minister of Latvia Krišjānis Kariņš: "I will continue to advocate for the interests of the Latvian agricultural sector in discussions with my colleagues in the European Union. It is regrettable that the latest multiannual budget framework proposal also provides for lower direct payments for Latvian farmers than for farmers in Western Europe. This is not fair, because our producing farmers and exporters also have to compete with their products on the global market. In preparation for the upcoming negotiations on the next multiannual budget framework of the European Union, today's conversation with representatives of the agricultural sector was truly valuable."

ZSA Board Chairman Juris Lazdins: "On May 27, the European Commission came up with a new budget proposal, but it must be admitted that this proposal is also unacceptable to Latvian farmers. It seems that the 15% reduction in the Rural Development Fund is no longer in danger, which will allow at least for this period to support small, medium-sized, organic farms, invest in rural infrastructure, processing, and environmentally friendly technologies. However, it is disappointing that no progress is being observed in the direct payments section, and at this rate, we could only reach the average level in 2069.

Also at the beginning of the COVID crisis, the primary promise from the Latvian farmers was to provide the Latvian population with food in the required amount, which we have done in good faith. Unfortunately, observing trends in European politics, we cannot guarantee such efficiency of farmers in the future. We discussed with the Prime Minister that the new EU strategies related to agriculture no longer come from an economically justified and balanced position, but, unfortunately, they are rooted in utopian, ideological visions. We highly appreciate Mr. Kariņš's pragmatism and support for the fact that the development of any specific farming methods should be based not on political assumptions, but on market demand.”

LOSP Chairman Edgars Treibergs: "We got the impression that the Prime Minister is aware of the shortcomings of the EU 2021-2027 multi-annual budget draft, is not satisfied with the support payments allocated to Latvian farmers and is ready to prove Latvia's rightness in the European Council with arguments and figures. Direct payments to farmers still do not reach 90% of the average support level of EU countries and if this continues, Latvia could only receive equivalent payments in 2069. With such a non-solidaristic attitude of EU countries, the competitiveness of Latvian farmers and food producers in the open food market is threatened. Then it is not surprising that Latvian products are more expensive or in a smaller assortment on store shelves!

In connection with the exit from the Covid-19 crisis, we agreed that the regulations MK219 adopted by the government in April, which provide for support for farmers, should be improved together with the Ministry of Agriculture, because it is not possible for the dairy industry to let a cow idle and then return it to the herd. We received confirmation that this issue will be considered by the government on Tuesday..

Chairman of the Board of the Latvian Football Association Indulis Jansons: "I am pleased that the Prime Minister understands the farmers' problem of the unequal distribution of direct payments and is ready to express his opinion in the European Council that Latvian farmers want to live and work on an equal footing with farmers in other European Union member states. In the future, Latvian agriculture must be developed as a competitive sector on which our entire national economy is based."