Rinkevics, the President, tours affected farming areas drenched by rain in Latvia
In the face of heavy summer rains and resulting crop losses, farmers in Latvia are finding some relief through a series of financial support measures under a nationwide agricultural state of emergency declared until November 2025.
During a recent visit to the farm "Lazdu mājas" in Dekšāre parish, Rēzekne municipality, President Edgars Rinkēvičs expressed his concerns about the farmers' prospects for additional state aid. Lauris Ikaunieks, who farms at "Lazdu mājas" with his parents, has found this year particularly challenging due to continuous rain since May.
The losses for farmers, as of the conversation on July 24, were 60 million euros, but this number has since increased to 94 million euros. Each farmer's situation is different, according to Ikaunieks. The challenge for him is the harvest, and the quality of the cereals grown on the farm's 650 hectares.
The state of emergency provides several options for farmers to ease their financial burdens. Tax relief allows the State Revenue Service to waive penalties and postpone overdue tax payments for up to one year or extend voluntary payments over three years. Financial institutions, including banks, are also permitted to offer affected farmers loan repayment relief such as pausing repayments, renegotiating interest rates, rescheduling loans, or temporarily adjusting terms without penalties.
Fast-tracked emergency funding enables the government to speed up financial assistance programs to help farmers recover from severe crop damage and income losses. Authorities can also apply legal solutions suitable for force majeure situations, protecting farmers from certain contractual or financial liabilities resulting from weather-related disruptions.
The Minister for Agriculture has been working on obtaining funding from the European Commission to support farmers. However, President Rinkēvičs mentioned that calculations and work with the European Commission are still ahead. The President did not specify the source of the additional funding for farmers.
In a show of support, the President suggested being more tolerant and helpful towards farmers, rather than disturbing them with various checks. He did not mention any other potential sources of support besides the European Union.
As for "Lazdu mājas", the President did not discuss the specific credit problems of the farm. However, a new and modern cow farm was built on the property. Despite the challenges, Ikaunieks hopes to harvest as much as possible from the fields and is optimistic about the future.
In conclusion, Latvian farmers facing difficulties due to extreme summer weather have options for tax deferrals, loan adjustments, and expedited governmental assistance facilitated by the state of emergency declaration. The government has also appealed to the European Commission for additional emergency support for the agricultural sector.
- The state of emergency, declared until November 2025, offers agricultural support from the European Union, as the Latvian Minister for Agriculture is working to secure funding from the European Commission.
- Recognizing the challenges faced by farmers, President Edgars Rinkēvičs has suggested being more tolerant and helpful towards them, instead of imposing numerous checks.
- Amidst the concerns of increasing crop losses and their potential impact on the overall agricultural sector, the government is facilitating financial relief through tax deferrals, loan adjustments, and fast-tracked emergency funding.
