At a European Commission (EC) working group vote on an EC regulation providing emergency financial support to farmers facing economic viability problems caused by the crisis in the Middle East, Latvia was allocated EUR 5.5 million. The regulation aims to support farmers facing significant increases in production input costs, particularly energy and fertilisers, as a result of prolonged instability in the Middle East. Rising costs are creating liquidity problems for farmers and threatening the economic viability of many farms. The EC has therefore proposed emergency support to ease the cost burden and prevent a further deterioration in farmers’ economic situation.
In the vote, 24 Member States supported the EC proposal, two abstained, while Latvia voted against it. Latvia stressed that emergency support for farmers is essential and necessary under the current circumstances, but could not support the proposed regulation and allocation of funding. Latvia, together with Bulgaria and Estonia, prepared and submitted a joint statement to the EC objecting to the proposed approach for distributing the support.
The Ministry of Agriculture considers that the methodology for allocating the funding is not sufficiently transparent or objective, as it does not fully reflect differences in the actual impact of the crisis among Member States. Greater consideration should have been given to the impact of rising production costs and the increased economic vulnerability of eastern border Member States, which are particularly affected by the geopolitical situation and Russia’s war in Ukraine. The Ministry also believes that the allocation of emergency support should have reflected the actual impact of the crisis on farmers rather than being based primarily on the historical principles used to distribute Common Agricultural Policy direct payments. Member States that continue to receive the lowest direct payments are particularly vulnerable in the current crisis, yet their specific situation has not been adequately reflected in the allocation of support.
The regulation will enter into force on July 31st this year. The total amount of emergency support in the EU is EUR 540 million, of which Latvia has been allocated EUR 5.5 million. Member States must distribute the support to the farmers most affected by the crisis by the end of February 2027, using objective and non-discriminatory criteria.