On Monday and Tuesday, June 26 and 27, Minister for Agriculture, Didzis Šmits attended a meeting of the European Union (EU) Council of Agriculture and Fisheries in Luxembourg. Ministers discussed situation on the EU agricultural market following Russia's aggressive invasion of Ukraine and the adverse weather conditions for agricultural production in many EU Member States. Discussions also took place on the new Regulation on the sustainable use of plant protection products (AAL) prepared by the European Commission (EC).
The work and revenues of Latvian farmers were negatively affected by heavy frosts already in spring, and the drought and heat that followed them now, in summer. Prolonged drought conditions have a negative impact on most crops and their development, including the yield of forage crops. Therefore, the Minister for Agriculture, Didzis Šmits called on the EC to authorize a number of exceptional measures in the Strategic Plan of the Common Agricultural Policy of Latvia for 2023-2027, such as allowing derogations from EU requirements for non-productive areas to help farmers overcome difficulties and stabilize the situation while maintaining the resilience of the agricultural sector.
“Due to extreme weather conditions that have affected farmers from both Latvia and other European countries, we urge the Commission to apply certain derogations from CAP requirements,” Didzis Šmits emphasized. “This would allow non-productive areas of agricultural land (buffer strips, arable margins, fallow land) to be used for food production and forage production.”
Most Member States expressed support for Latvia's proposals to apply such derogations to the Common Agricultural Policy, calling on the EC to support the proposed flexibilities for farmers in such difficult circumstances.
Food producers have been under pressure for a long time, already from COVID-19 restrictive measures to the situation, caused by ongoing Russian military aggression in Ukraine. The EC has therefore proposed to allocate EUR 330 million for farmers in 22 EU Member States, affected by adverse climatic conditions, high costs of resource and various market and trade issues. It is planned to allocate EUR 6.8 million to Latvia as a support. At the beginning of July there will be discussions between Member States on the proposal prepared by the EC and a vote on its approval.
In discussing trade aspects, related to agriculture, the Minister for Agriculture stressed the need to continue supporting Ukraine, while inviting the EC to assess the availability of key inputs and their price correlation with the development of agricultural prices. The Minister also drew attention to the need to assess unequal market competition in relation to the increase of imports into the EU from third countries and stressed the need to achieve balanced results of trade negotiations, taking into account the interests of our producers and ensuring fair competition.
During the meeting, the Minister for Agriculture, Didzis Šmits met Luis Planas Puchades, Minister for Agriculture, Fisheries and Food of Spain, they discussed priorities of Spain as the Presidency of the Council of the EU for the next half a year and stressed Latvia's interests.
In the discussion on reduction of the use of PPP, Latvia, like other EU Member States, emphasized that it is looking forward to an additional impact assessment carried out by the EC, which should provide answers, regarding the impact of reduction of the use of PPP on food production and sufficiency, prices, impact on forestry and biodiversity, risk of spreading harmful organisms, impact on competitiveness and profitability of producers.