For Growth on the Earth

21 Member States support Latvia’s proposal to simplify the Common Agricultural Policy

On September 23, a meeting of the Council of Ministers for Agriculture and Fisheries of the European Union (EU) took place in Brussels, where the implementation of the second year of the Common Agricultural Policy Strategic Plan (CAP SP) was evaluated.

As the first years of implementation of the CAP SP shows, management of the agricultural policy system is complex for both farmers and administrations. Instead of the simplification sought, the new implementation model of the CAP SP has created an additional administrative burden, focusing on technical conditions and requirements rather than the results achieved.

Latvia has therefore prepared a proposal to simplify the planning and reporting of CAP SP. Mr Krauze also drew attention to the fact that, with each subsequent year of implementation of the CAP SP, Member States will introduce more and more measures, which will also increase the administrative burden of reporting on farmers and the authorities responsible.

It should be noted that the complex and fragmented system of planning and reporting of CAP SP can also have financial consequences for Member States. Unable to adequately justify deviations from the planned indicator values, countries may be subjected to reductions in aid or even suspensions. But one of the main problems is the European Commission’s (EC) requirement to provide an exhaustive justification for any, even the smallest, deviation, despite the fact that EU law does not.

Latvia’s proposal to simplify CAP SP has received the support of almost all the EU Member States, demonstrating the importance and urgency of the issue.

The Minister for Agriculture, Armands Krauze, also discussed the complexity of the CAP SP system and the justification for excessively time-consuming deviations in bilateral negotiations with the EC Commissioner for Agriculture and Rural Development, Janusz Wojcehowski (Janusz Wojciechowski).

In a conversation with the Commissioner, as well as during a discussion in the Council, the Minister urged the EC to grant EU emergency support to Latvian agriculture. This year, too, a number of adverse conditions have been experienced – in May, a devastating frost, a severe storm in July, as well as winter has caused great damage to winter crops. Grain quality has suffered and the expected yield of cereals, potatoes, fruit, berries and vegetables has decreased. Moreover, the sector has yet to recover from the natural cataclysms experienced in 2023.

Information source: Ministry of Agriculture

ActusQ Newsletter September 2024

ActusQ September newsletter about current topicalities in European and Latvian agricultural sector has been published! At the end of the newsletter you will find selected agricultural real estate offers.

Latvia stresses the need to simplify CAP in discussions of agricultural policy makers of EU Member States

At the informal meeting of the Council of Ministers for Agriculture of the European Union (EU) held from 8 to 10 September, agricultural policy makers and experts talked about the necessary elements for the future Common Agricultural Policy (CAP) after 2027. In order to ensure sustainability and competitiveness and to manage crisis situations, it is necessary to significantly reduce bureaucracy and administrative burden.

Latvia, represented by Ģirts Krūmiņš, the State Secretary of the Ministry of Agriculture , emphasized in the discussion that the European Commission should review the conditions for implementation of the CAP and simplify them, as well as reduce the detailing of the information to be reported in the CAP Strategic Plan (SP). The administrative burden on farmers has increased many times and needs to be reduced.

Similarly, the European Commission (EC) is not sufficiently forthcoming toward adjustment of the planned indicators and the modification of the value of the planned results. Therefore, the Ministry of Agriculture (ZM) is concerned whether and how it will be possible to adapt the CAP SP and whether the planned timetable will allow the anomalies identified to be corrected in a timely manner.

In order for the CAP to continue supporting farmers in the implementation of the European Green Deal, to ensure sustainable farming and, at the same time, not to lose competitiveness on the market, it is necessary to identify gradually and purposefully the “green objectives” and the benefits thereof. At the same time, it is important to offer voluntary and manageable “green transition” measures, in return for support to compensate for at least part of costs and income foregone. There is also a need for high-quality training on the benefits of the green transition, the latest technologies and economic benefits, and the exchange of experiences between farmers. All this requires sufficient financial resources and investment and a simpler and more flexible approach to implementing the measures.

On the other hand, in order to better cope with crises in agriculture, it would be necessary to develop a system for anticipating and acting on crises at the EU level, as it is primarily necessary to deal with crises rather than their consequences. At the same time, the availability of adequate EU funding for crisis management needs to be considered, according to ZM experts.

Overcoming the difficulties, caused by emergencies, should not be left to each Member State alone, according to representatives of the ZM delegation. However, each Member State must strengthen farmers’ risk-taking capacity and also their responsibility for the consequences if the farmer himself has not made use of risk mitigation options such as insurance.

Information source: Ministry of Agriculture

Storm and heavy rain in July caused damage to 15.8 thousand ha for farmers in Latvia

The storm and heavy rain experienced on July 28 and 29 this year caused damage to 15.8 thousand hectares for farmers, according to information submitted by farmers to the Rural Support Service (RSS).

In total, RSS received 232 storm damage applications. Of the total reported area, 11.2 thousand hectares were insured, while 4.6 thousand hectares were uninsured.

Of the reported areas, 46.7% are winter wheat, 13.6% are winter rapeseed, 11.1% are oats, and 6.6% are spring wheat. The majority of these areas are insured. Additionally, there were registered areas of peas, field beans, rye, barley, potatoes, and other crops that were affected by the storm and heavy rain.

The most damage was reported in the Zemgale region, specifically in Dobele and Jelgava counties.

Information prepared by Rural Support Service and the Ministry of Agriculture

ActusQ Newsletter August 2024

ActusQ August newsletter about current topicalities in European and Latvian agricultural sector has been published! At the end of the newsletter you will find selected agricultural real estate offers.

Farmers show great interest in support for partial coverage of insurance premiums

In 2024, farmers had the opportunity to apply for partial reimbursement of crop, livestock, sowing, and planting insurance premiums until July 1. A total of 2,418 applications were received, amounting to a total of 10.91 million euros. The Rural Support Service (RSS) processes applications very quickly, and many farmers have already received payments that partially compensate for the cost of insurance policies.

The aim of this support is to encourage farmers to participate in risk reduction within the agricultural sector by insuring their land, animals, and crops.

Deputy Director of RSS, Andris Grundulis, commented on the farmers’ activity: “There is great interest in this support. This is also facilitated by the very variable weather conditions observed in recent years – hail alternates with drought, there are frosts and heavy rains. The insured areas have increased; this year, they are 78,000 hectares more than last year – a total of 421,000 hectares of land is insured. It is gratifying that farmers are securing their farms against risks.”

Fifty percent of the eligible costs of purchasing the insurance policy are compensated, and other conditions are also taken into account when calculating the final rate. More details can be found on the RSS website under “Crop, Livestock, Sowing, and Planting Insurance Premiums.”

Payments are also made from the European Agricultural Fund for Rural Development.

Information source: Rural Support Service

Changes to ActusQ office hours during collective leave

We inform you, that employees of Ltd “ActusQ” are going on collective annual leave from July 22 to August 4. We will resume working in usual working mode on August 5.

In case of any urgent questions, please contact us in advance.

Application for State Support for losses caused by the storm on August 7, 2023

From June 20, 2024, to July 4, 2024, applications can be submitted for state support for losses caused by the storm on August 7, 2023.

Applications can be submitted by those farms that informed the Service about hail damage in a timely manner and where the Service conducted area inspections. Support will be paid for areas declared in 2023 that suffered damage to fruit, berries, perennial plantings, vegetables, cereals, oil plants, and leguminous plants (a detailed list of crops is in Appendix 357 of the Cabinet of Ministers regulations).

Support for damaged areas of cereals, oil plants, or leguminous crops can be received if the damaged area constitutes at least 90 percent of the total declared area of the respective crop and the respective crop areas were not insured in 2023.

In total, there are 133 farmers who meet the criteria. They will receive letters in the coming days with information about the eligible areas and an invitation to apply for support.

The application form can be found in the “State Support Applications” section of the Electronic Application System.

Information source: Rural Support Service

Join our team as legal counsel

We are a private business consulting, legal services and investment project management company operating in an international environment. We have been successfully working with the development of investment projects in the agricultural sector for 20 years.

We invite you to join our team as
LEGAL COUNSEL

Main job responsibilities:

  • Analysis of various commercial transactions; legal support with M&A (acquisition, divestment);
  • Legal counselling in corporate and administrative law matters; preparation of decisions and company founding documents;
  • Serving as legal consultant on various clients’ legal issues;
  • Representation of clients’ interests in private and public relations, including courts;
  • Reviewing and drafting legal documentation;
  • Legal counselling and assistance with KYC and other compliance processes;
  • In-house legal support and cooperation with other legal advisors, management and stakeholders.

Requirements for the candidate:

  • Higher education in law (master’s degree);
  • Work experience in reorganization transactions (M&A) not less than 5 years;
  • Experience in energy, construction or real estate sector will be seen as advantage;
  • Good knowledge of Civil Law, Commercial Law and Administrative Procedure Law;
  • Interest and knowledge in current curt cases;
  • Excellent knowledge of Latvian and English (written and oral);
  • Ability to work comfortably in an international business environment with local and foreign clients and partners;
  • Client and result-orientated personality with excellent communication skills, analytical and structured thinking, the ability to skillfully plan and structure your working time and prioritize tasks, take the initiative and solve difficult situations.

We offer:

  • Stable salary according to the candidate’s experience, skills and results; for candidates with demonstrable competence we offer individual negotiations and agreements on remuneration;
  • Modern working conditions, international, dynamic and challenging work environment;
  • Full-time or part-time work (not less than 3 full working days per week);
  • Workplace in Cesis;
  • Possible business trips.

If you believe that you are suitable for this vacancy, send your motivation letter, reflecting your experience, skills and special achievements, and your CV by August 5, 2024 to the address:

SIA “ActusQ”
Valmieras iela 20A, Cēsis, LV-4101

or e-mail to actusQ@actusQ.lv
If you want to know more about the vacancy, please call: 64107185.

ActusQ Newsletter June 2024

ActusQ June newsletter about current topicalities in European and Latvian agricultural sector has been published! At the end of the newsletter you will find selected agricultural real estate offers.