Latvian Farmers Face Low EU Support Amid Rising Costs and Market Shifts
Latvian farmers are projected to receive about 10 euros per hectare in EU support, among the lowest in the EU. In contrast, wealthier countries like France and Poland secure significantly higher allocations, exacerbating competitive imbalances for Baltic agrarians.
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Latvian farmers anticipate receiving approximately 10 euros per hectare in EU support, lower than the 15 to 30 euros per hectare seen in several Western European nations. Rising operational costs, exacerbated by the war in Ukraine and the carbon border adjustment mechanism (CBAM), are projected to impose an additional financial burden of 16 million euros on Latvian agrarians by year-end.
The EU's policy allowing member states to match support payments up to 200% creates disparities, benefitting financially robust countries while undermining Latvia's competitiveness. Payments to all EU agrarians must conclude by February 28, 2027. In a broader context, the CBAM is compelling global exporters, including Brazilian steel and aluminum producers, to adapt quickly to new compliance demands to retain market access.
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