State support to agricultural and food sectors

Government approved amendments drafted by the Ministry of Agriculture to the procedures for granting, administering and monitoring state aid to agriculture in order to reduce the negative impact of the spread of Covid-19.

Even after the termination of the first emergency situation, Latvia is exposed to the negative effects of Covid-19 in the sectors of agriculture and food, causing financial difficulties and endangering the viability not only of the manufacturers initially included in the support activities, but other manufacturers as well.

The income of farmers representing dairy sector has decreased, therefore amendments to the regulations provide for the granting of support to dairy producers (for dairy cows) in the July – September period as well, if the income of the manufacturers of the sector in this period have been at least by 5% lower than their average income over the period of the previous three years. The support funding for dairy cows in July-September will be ensured by redistributing the funds unused for the needs of other activities.

The amendments to the regulations provide for support for all eligible animals (beef varieties, as well as cattle obtained as hybrids of such varieties, or male cattle obtained as hybrids of dairy varieties or dairy and beef varieties) from the age of six months that were sold from April to September this year, as well as support for sows during the period from April to June this year.

Meanwhile, in other areas of agriculture and food, the turnover reduction threshold was reduced from 25 to 15 percent. This means that companies will be able to apply for support, if their net turnover has declined by more
than 15 percent.
Amendments provide for individual changes of specifying nature as well.

Information source: Rural Support Service