Estonian farmers worried by possible drop in EU subsidies
Farmers are concerned the government may allocate them less European Union funding in the future, as the European Commission mulls allowing member states to have greater flexibility when distributing support.
Under the existing rules, Brussels mostly decides how member states distribute the funding they receive from the budget. Estonian farmers received about €2.1 billion for the current budget period under this system.
However, under the next budget period (2028-2034), EU funds will be distributed differently. Approximately €1.5 billion has been earmarked for Estonian agriculture, around 20 percent less.
The government will be able to decide how to allocate the rest of the money.
"Ministries, in cooperation with the sector, are preparing their plans — what challenges will be addressed, what actions will be taken, and their budgets. Then, presumably, the Ministry of Finance and the Government Office will assess how these align with our broader national goals in areas like security, the 'Estonia 2035' program, and other strategic documents," said Madis Pärtel, deputy secretary general for bioeconomy at the Ministry of Regional Affairs and Agriculture.
Pärtel said the ministry wants farmers to receive the same amount of funding in the next period as in the current one (2021-2027). This would mean the amount would only decrease by the rate of inflation.
"Of course, some decimal points will change, but broadly speaking, that's a fair way to put it," he said.
Exactly how much funding will be allocated to farmers will be revealed sometime toward the end of next year.
Ants-Hannes Viira from the Estonian Chamber of Agriculture and Commerce said the government's decision will affect their competitiveness.
"Countries that do not wish to provide more support or are unable to provide more support place their food producers at a competitive disadvantage compared to countries where the resources and political will are different," Viira said.
He added that if support is reduced, agricultural producers would become more vulnerable to the effects of weather and market fluctuations. This, in turn, could force companies to exit the sector and make domestic food production less stable.
"As we saw this year, the agricultural sector faces many challenges: we've had weather-related damage in grain and vegetable cultivation, and African swine fever. This year, the sector has suffered more than €100 million in damages," he stated.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Helen Wright
