Agricultural Crisis-Government to approve 24 mil euro support

Feb 03, 2009
TBT Staff

RIGA-Riga area roads are expected to be crawling with tractors as farmers show their protest against the Latvian government's inability to handle the agricultural crisis. Several Latvian farmers organizations are also demanding that Martins Roze step down as Agricultural Minister.   

 Talks between farmers and the government thus far have ended with no results, hence further protest. However, Prime Minister Ivars Godmanis has said the government will approve a 17 million lat (24 million euro) support package for the ailing farming sector.

 The money is expected to go towards loan guarantees and for investment in the Rural Development Fund.

After protests one week ago, farmers gave the government one week to figure out stable support for farming, specifically the dairy sector which faces bankruptcy.

 

Among the farmers demands are the desire for EU direct payments to be paid before March 31 and the opening of a credit line for cooperative farms to help aid in payments.

 

The farmers have also demanded that 2.5 percent of the national budget be spent on support for farmers and the agricultural sector.

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