For Growth on the Earth

Latvian government announces measures to contain coronavirus

The World Health Organization in January declared the coronavirus outbreak a “global health emergency”, it is highest level of alarm, which it reserves for the most serious, sudden, unexpected outbreaks that cross international borders and might require a coordinated response between countries. Few weeks later on March 11 the Organization declared the novel coronavirus a pandemic on as it spreads in more than 100 countries around the world. 

This is the first time the pandemic designation has been used for a coronavirus. The virus causes mild respiratory infections in about 80% of those infected, though about half will have pneumonia. Another 15% develop severe illness, and 5% need critical care. Europe is the epicenter of the first pandemic of COVID-19 and every country, with no exceptions, needs to take their boldest actions to stop or slow down the spread of this virus. 

The government of Latvia has decided to extend the precautionary and security measures during the emergency situation in order to prevent more effectively the spread of COVID-19. These measures will stay in place until April 14. 

International passenger transport through airports, ports, by bus and rail transport is cancelled as of 17 March. In addition, the movement of persons and vehicles through airport, port, railway and road border crossing points at the European Union’s external border, as well as at border crossing points intended for local border traffic is banned from 17 March 2020. This prohibition will not apply to the carriage of goods. 

The above-mentioned restrictions shall not apply to nationals of the Republic of Latvia who wish to return to Latvia. Nor do they apply to foreign nationals whose permanent place of residence is in Latvia and who want to return here or to foreign nationals who want to leave Latvia. 

Child care facilities provide on-call service from March 16 to parents who cannot provide childcare themselves. Parents will be required to submit a written statement to the preschool once a week that the child and family have not been abroad for the past 14 days and have not been in contact with Covid-19 sufferers or contacts, and parents are not otherwise able to provide childcare. 

The on-site learning process will be interrupted at all educational institutions and training will be provided remotely. In addition, all public events and activities are prohibited irrespective of the number of visitors. Meetings, demonstrations, pickets and religious activities involving the assembly are also prohibited. Unorganized gatherings in cultural, entertainment, recreation, sports and religious venues for more than 50 people at the same time is limited. The office hours of cultural, entertainment, sports and other recreational areas will be no longer than until 23.00. 

Due to the state-declared emergency in the country due to the COVID-19 virus, face-to-face visitor reception and other restrictions have been suspended in almost all state and municipal structures, institutions and companies all over the country. All institutions continue to operate remotely and provide services online, by telephone or by email. Consequently, slower progress in the provision of services is to be expected at the moment. 

Many companies and local businesses also continue to work, part of them remotely and, if possible, employees are working from home. 

Information source: Cabinet of Ministers, Ministry of Finance, World Health Organization

Provisional applications for area payments can be filled in

As of 14 February, this year, any agriculturist may start filling out the information on the unified area payment application. This year, Rural Support Service (RSS) for the first time offers the opportunity to fill the aforementioned applications more comfortably by using Electronic Application System (EAS) – now this can be done gradually by promptly calculating, whether the greening and other requirements are going to be met. This form is indicated as Provisional Application on the EAS system. 

The submission of applications for area payments will be available form 8 April to 22 May, and payment reduction coefficient for each day of delay will be applied on applications submitted until 15 June.

There are no significant changes in the conditions for the receipt of support in the area payment season of 2020. It must be taken into consideration that only liabilities in the activity Maintenance of biological diversity in grasslands may be assumed anew, in the rest of the activities, no new liabilities can be assumed, but the existing liabilities can be extended by one year. 

The Rural Support Service also reminds that the specification of rural blocks is taking place at the moment, it can be done until 1 April. 

Information source: Rural Support Service 

Grain crops reached record level last year

The total crop of cereals harvested in Latvia last year, according to provisional data, has increased by 53.8% or 1.1. million tonnes from 2018 and amounted to 3.163 million tonnes, which is the highest total cereal crop in the history of Latvia, the data of Central Statistical Bureau of Latvia show. 

The average cereal productivity from one hectare in 2019 reached 42.6 quintals, which is the second highest cereal productivity in the history of Latvia since 2015, when the productivity reached 44.9 quintals from a hectare. A record high export of cereal products of 2.8 million tonnes to the value of EUR 518 million was also reached. 

The Central statistical Bureau indicates that the total crop of 2019 was facilitated not only by the high productivity figures, but the increase in cereal areas – cereals were grown in 742,300 hectares, which is a 51,400 hectares or 7.5% increase from the previous year, which is the largest area under cereals in the history of Latvian agriculture. 

The data shows that the total amount of cereals purchased in 2019 was 2.4 million tonnes, which is by 699,200 tonnes or 40.1% more than in the previous year. The average purchase price of cereals decreased at the same time – from EUR 168.34 per tonne in 2018 to EUR 155.97 per tonne in 2019 or by 7.3%. 

Information source: LETA, Central Statistical Bureau of Latvia

Latvia avoids being included in international money-laundering “gray list”

On Friday, February 21, the Financial Action Task Force (FATF) announced that Latvia has established a strong and robust financial crime prevention system and will not be subject to “enhanced supervision” or included in the so-called “gray list”.

“The ambitious work on adjusting the regulation of financial sector, as well as its supervision and control, has paid off! The decision not to be the subject to enhanced supervision will serve as an incentive for us to continue our work aimed at economic development and supporting business. Credit institutions are provided with all the prerequisites to continue to work with a clear awareness of specific risks for Latvia and to contribute to the growth of our country,” says Jānis Reirs, Minister of Finance.

The financial sector needed a “major overhaul” in order to strengthen the prevention of money laundering and terrorist financing and to achieve full compliance with the international standards in this area. The arrangement of the financial sector and further work on financial crime prevention would not be possible without the efforts of all parties involved.

In order to ensure a transparent, sustainable and safe operation of the financial sector in Latvia, laws on the financial sector’s “major overhaul” – amendments to the Financial and Capital Market Law and the Law on Credit Institutions – were drafted and approved. These legislative changes are considered to be one of the most ambitious financial sector reform programs in Europe to date, and they confirm Latvia’s commitment to a stable and transparent financial sector as a basis for sustainable growth and prosperity for all the citizens of Latvia.


Information source: Ministry of Finance

Girts Krumins will lead Rural Support Service

In November 5th, the Latvian government approved the transfer of the Deputy Director of the Rural Support Service (RSS), Girts Krumins, to the position of the RSS director from November 7th, 2019.

Minister of Agriculture Kaspars Gerhards justifies this choice: “The primary is to ensure the continuity of the RSS work, as our Rural Support Service, as a farmer money management authority, is one of the best in the European Union. Girts Krumins has proven his ability to lead this complex and responsible institution. Precise and targeted management of European and national budget money, using the latest technologies, is the right way started and must be continued.

Girts Krumins has been working at the RSS since 2002. He has worked in the EU Direct Payment Department, was also its director, and since 2007 – the deputy director of the RSS. Girts Krumins has more than 10 year experience in leading a large team, and has good organizational and team management skills. He is interested in management of changes and supports innovations in the RSS.

Under the guidance of Girts Krumins, RSS in 2017 received the world-class award “WSIS Prize 2017” for the RSS Electronic Application System, which was approved as the world’s best IT tool for farmers. Also in 2015, the RSS received the 2nd place at the contest “2015 United Nations Public Service Award” for the Electronic Application System, in the category “Promoting Access to Public Services in the Information Age”.

Information source: Ministry of Agriculture

The amount of milk delivered in Latvia is growing

The volume of raw milk delivered to Latvia in the first nine months of this year has increased by 0.4% compared to the same period last year and was 600 626 tons, according to the data of the Agricultural Data Centre.

Of this, the volume of raw milk delivered in September 2019 in Latvia has increased by 1.5%, reaching 69 756 tons.

Meanwhile, the number of dairy cows continued to decline in September this year, as in all previous months. In September this year 142 190 dairy cows were registered in the country, which is 4.3% less than in September 2018, when 148 641 dairy cows were registered. At the same time, milk from 126 709 dairy cows for processing was sold in September this year, which is 3.8% less than a month earlier.

Information from the Agricultural Data Centre also shows that in September 2019 there were 13 543 herds registered in Latvia, which is 10.7% less than in September 2018. Of which, milk for processing was transferred in September this year from 6 620 herds, which is 5.9% less than the previous month when there were 7 034 herds.

European Commission (Dairy Market Observatory) data on preliminary milk purchase price data of European Union (EU) Member States show that in Latvia the price in September was 285 EUR/ton, which is 0.5% more than a month before, when it was 283.7 EUR/ton.

By contrast, the EU average preliminary purchase price for milk in September this year was 337.8 EUR/ton, up 0.4% from the previous month.

Information source: LETA

Latvia appoints Purgaile as new financial watchdog head

Saeima on 24th of October approved the appointment of Santa Purgaile, a former board member at Citadele Bank, as the next head of the Financial and Capital Market Commission (FCMC).

Purgaile’s candidacy was approved by 55 votes to four, with 21 abstentions. In the vote, Purgaile’s appointment was supported by coalition lawmakers and four MPs of the opposition Union of Greens and Farmers. Voting against the candidate were four independent MPs – Linda Liepina, Karina Sprude, Julija Stepanenko and Didzis Smits. MPs of the opposition Harmony group abstained from voting. Another five lawmakers did not register for the vote.

As reported, Purgaile was selected for FCMC chairperson in a tender and the Cabinet of Ministers approved her nomination for the position.

Purgaile has been working at Citadele bank since 2012 – as the business development director, and since 2017 as the corporate business director. Purgaile has also been a member of the management board at Citadele bank. Prior to joining Citadele’s Management Board, Purgaile ran SEB Bank’s private banking business in Latvia and the Baltic states. She has also served as director of SEB Bank’s SME Business Support and before that as director of Vidzeme region. Santa holds a master’s degree in international economics and business.

Prime Minister Krisjanis Karins (New Unity) told journalists earlier that he has full confidence in the selection procedure and trust in Purgaile as the nominee for FCMC head.

Information source: Baltictimes.com; BNN-NEWS.COM

Higher advance for area payments

The Ministry of Agriculture informs that in order to reduce the burden of financial hardship for farmers affected by the adverse summer weather conditions, it has been decided to pay an advance on the single area payment and the organic farming payment more than 50%. Accordingly, the single area payment advance will be paid at 70% and the advance payment for organic farming at 85%.

Advance payments will be made gradually by the Rural Support Service (RSS) after 16 October and will be received by farmers whose farms have completed the eligibility check. The Ministry of Agriculture and the RSS invite farmers to check in the electronic application system whether all necessary answers have been provided to the Rural Support Service.

Funding for the Single Area Payment has increased by 11% in 2019 compared to the previous year and the provisional advance rate will be around 58 EUR/ha, while organic farming payment rates will remain unchanged, as in previous years from 97 to 485 EUR/ha.

On 2 August the Ministry of Agriculture submitted a proposal to the European Commission to allow Latvian farmers to receive an advance on the single area payment in excess of the amount provided for in the Regulation. On 17 September this year, in response to the request from Latvia and other countries and the insistence on justification or clarification of the situation, the European Commission adopted a decision to depart from the normal procedure for advance payments and to allow several Member States, including also Latvia, to pay a higher advance payment.

Information source: Ministry of Agriculture

Financing for investments in material assets

From November 4 until December 4, 2019, applications will be accepted for support for investments in farms and investments in processing. 

The objective of the measure “Support for investment in farms” is to support farms with a view to improve their economic performance and competitiveness, and promoting the development of cooperation by ensuring sustainable management of natural resources and supporting a climate change sustainable economy.

The sixth round of public funding available for agricultural service cooperatives is EUR 7.5 million and for farms – EUR 29 million.

Projects will be evaluated by March 1, 2021, taking into account the released public funding.

The objective of the measure “Support for investment in processing” is to increase the efficiency and added value of the processing of agricultural products by promoting the development of competitive cooperation and the development of sustainable agricultural production and innovation in enterprises. The sub-measure supports activities related to the processing of agricultural products and related packaging and pre-processing. The available public funding for the eighth round is EUR 15.7 million.

Submitted project implementation deadlines:

  • for investment in fixed assets – one year from the decision of the RSS;
  • for approved project applications for construction, reconstruction, perennial plantations and purchase of fixed assets – two years from the decision of the RSS of approval of the project application.

Information source: Rural Support Service

Increased criteria for the purchase of labeled diesel

On October 1, the government approved amendments to the Ministry of Agriculture’s (MF) amendments to the procedure for applying a reduced rate of excise duty on labelled (marked) diesel for agricultural and forest land or swamp where cultivation of cranberries or blueberries is done and for land under fish ponds.

The regulations stipulate that from 2020/2021. agricultural producers, eligible to purchase a reduced excise duty on diesel will need to have a higher minimum income criterion for the financial year. The minimum income requirement for conventional farms is raised from EUR 285/ha to EUR 350/ha and for organic farms from EUR 200/ha to 210 EUR/ha.

The regulations also specify that the agricultural producer does not have to submit a certificate issued by the Latvian Orchardman Association regarding the processing of forest or swamp land.

Information source: Ministry of Agriculture