Agricultural Crisis-Government to approve 24 mil euro support

2009-02-03
TBT Staff

Today's rally could see thousands of tractors and farm equipment protesting Riga roads from Babite to Sigulda.

RIGA-Rigaarea roads are expected to be crawling with tractors as farmers show theirprotest against the Latvian government's inability to handle the agriculturalcrisis. Several Latvian farmers organizations are also demanding that MartinsRoze step down as Agricultural Minister.

Talks between farmers and the government thus far have endedwith no results, hence further protest. However, Prime Minister Ivars Godmanishas said the government will approve a 17 million lat (24 million euro) supportpackage for the ailing farming sector.

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

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

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

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