Author: Ilona Bērziņa
On Monday, the 5th of February, farmer protests are expected in various Latvian regions. Various farm equipment will be used for those protests. Farmers demand a ban on imports of Russian and Belarusian grains, reduction of bureaucracy in the agricultural sector, more accessibility for insurance and working capital programmes, as well as a reduction of VAT to 5% for Latvian fruits, vegetables and berries.
Minister of Agriculture Armands Krauze mentioned in a conversation with BNN that most of these demands are already being worked on.
The immediate ban on Russian and Belarusian products and animal feeds was mentioned as the first demand of Latvian farmers. Armands Krauze stresses that the ruling coalition has already reached an agreement on the prohibition of imports of Russian and Belarusian grains. On Monday, the 5th of January, a legislative draft will be handed to coalition partners and Saeima deputies. “The rest is in the Saeima’s hands.” Krauze says. He also stressed that regulations of the Cabinet of Ministers already include a section that states how businesses that want to receive public financing from any state support programmes, will not be allowed to procure raw materials from Russia or Belarus.
The Food and Veterinary Service will tighten monitoring of freight passing through Latvia’s borders.
The minster said that European legislation provides Latvia the right to ban imports of goods from any country based on risk assessment. However, the situation with transit is different.
By unilaterally banning the transit of Russian grains through Latvia, we will not only act opposite to principles of the United Nations on the delivery of food to countries at risk of famine but also breach the European Union’s market principles.
“An absolute majority of Russian grains is exported through other ports, not Latvia,” says Armands Krauze. According to him, the decision to ban the transit of grains can only be made if all EU member states agree.
Latvian farmers’ demands also include the promotion of transit of Ukrainian grain for third countries. Armands Krauze admits that the Ministry of Agriculture can only carefully monitor to make sure there are no obstacles for the freight that passes through Latvia, because its not economically sound to carry Ukrainian grains in transit. “These grains cannot be brought to our sea ports. If there was such a plan, it would be necessary to load and unload grains twice because of the difference of railway track gauge. This would not be economically sound. What we can do is aid Ukraine with legal advice on ways to promote the transit of Ukrainian grains in Europe.”
When asked about the improvement of the reporting system for agricultural land to make it user-friendly and so that it doesn’t create farmers more problems, Krauze said that improvements are on the way and farmers actively participate in the testing process. “Everything is is motion, and I believe the task will be completed by autumn and farmers will not have to use this system too early.”
When asked about the fractured state and illogical requirements for farmers listed in the General agriculture policy of Latvia’s Strategic Plan, Krauze said the responsibility largely lies with his predecessors. It’s not easy to fix this situation either. “We need approval from Brussels for amendments to this plan, as it has ties to the European Union’s general agriculture policy. A minister cannot do this on his own,” he said.
As for farmers demand on a wider accessibility to insurance and working capital programmes, Krauze stresses that the state has allocated an additional EUR 12 million for interest rates and insurance this ear. The funding for both positions has reached EUR 39.7 million.
“EUR 24 million is planned to go towards covering farmers interest rates as part of Rural Support Service. Compared to 2023, it is an increase of 85.1%,” says Krauze. “A couple of days ago some farmer from Latgale mentioned in a TV interview that it is tough to deal with all leasing contracts and loans, but this programme exists so that we can help overcome the crisis. Considering last year’s experience with the frost, drought, floods and hail, we have accomplished an increase of financing by more than fifteen and a half million euros to help partially cover insurance policy costs. This is targeted support,” says Krauze.
As for farmers’ demand to restore 5% VAT rate for fruits, vegetables and berries typical for Latvia, the minister said that this is not just an issue for the Ministry of Agriculture. This topic will be discussed by the ruling coalition’s tax policy review group. The minister said he supports the idea of lowering VAT for food and catering.
BNN reminds that the biggest protests by Latvian farmers to date took place in 2009, when farmers protested against the crisis in the dairy sector, as well as the government’s inability to provide support to farmers who suffered from the financial crisis. Farmers came to Riga from all over Latvia in tractors and demanded the dismissal of then the Minister of Agriculture Mārtiņš Roze, which was done in the end. The decision to take farming equipment from all over Latvia for a protest in Riga was also made by Latvian Agricultural Organisation Cooperation Council, and Armands Krauze was this organisation’s chairman.
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