Latvian farmers may receive aid from EU to compensate losses from war in Ukraine

Latvian farmers may receive aid from the European Union due to the war in Ukraine in the form of EUR 4.2 million, as noted by Latvian Minister of Agriculture Kaspars Gerhards during a meeting of the Latvian Farmers Federation on Wednesday, 30 March.
Officials of the Ministry of Agriculture are now working on settling this financing.
According to Gerhards, additional aid from the EU would be possible to combine with state aid, which will allow the state to allocate necessary funding to sectors impacted by this situation the most. This includes the increase of prices of mineral fertilizers, animal feed and energy resources.
Prime Minister Krišjānis Kariņš’s parliamentary secretary Evika Siliņa mentioned that the total aid from the EU in this situation will be EUR 500 million. Latvia is eligible to receive a small portion of this amount.
«This may not seem like much, but it it something,» said Siliņa, adding that there will be other kinds of aid that will, for example, allow expanding arable land areas.
She also mentioned this crisis is different to Covid-19, because while during Covid-19 crisis restrictions were imposed by the government, which also compensated losses to residents, this time aid will not be as expansive. At the same time, she stressed that the cost increase and market switch from Russia and Belarus to other countries is the smallest price Latvia can pay for its security and freedom.
Gerhards said he is confident that Latvian farmers will be able to overcome these problems despite price increase and changes, adding that it is important to think about focused state aid. There is a possibility that part of the state budget’s allocated EUR 50 million could be distributed towards aid for farmers.
«We will look which sector needs it the most and consider conditions, but we will definitely achieve this support,» said Gerhards.
He also said the ministry has received many requests for investments into material assets. The discussion between Ministry of Agriculture and Ministry of Finance continues about possible over-commitments.
«We will offer multiple options and will do all we can to ensure as many farmers as possible are satisfied. Currently it is too soon to say how big the amount could be. We continue working on that,» said the minister.