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Estonian agricultural producers: we are facing the deepest crisis since joining the European Union

Representative organizations of agricultural producers appealed to the Government for quick action.

Estonia’s agricultural sector is in the deepest crisis since joining the European Union. The instability of the economic environment, climate change, the realization of green goals, the increase in the cost price of production, the drop in incomes – these in cooperation have put food production and rural entrepreneurship in a difficult situation. Estonian Young Farmers NGO, the Estonian Chamber of Agriculture and Commerce and the Central Union of Estonian Farmers have called on the government for quick and decisive actions.

The representative organizations point out in the joint appeal that Estonian agricultural producers have fallen into a deep crisis, the results of 2023 show a drop in the sector’s corporate income to -72 million euros and debts to suppliers in the amount of 60-70 million euros, which is the worst indicator since joining the EU.

In the light of these critical circumstances, the representative organizations of Estonian agricultural producers call on the Government of the Republic of Estonia to take quick and decisive steps in order to:

  1. To improve the liquidity of the sector by using MES agricultural land capital lease and crisis loans.
  2. Reassess the goals resulting from the Climate Act, ensuring their realism and reach.
  3. Implement an economic policy that supports the stability and development of the agricultural sector in the current crisis situation.

Farmers come into contact with the effects of climate change on a daily basis, live in the same environment where they farm and are thus very well informed and interested in mitigating negative climate effects and preserving the environment. Food production is the backbone of Estonia’s economy and rural life, ensuring livelihoods for thousands of families in rural areas and security of supply for all of us. It is crucial that solutions to the sector’s challenges are found together.

Our appeal expresses serious concern and is a call for urgent action. We are not only looking for solutions to current problems, but we are striving for the future security of the agricultural sector. We ask for and expect a supportive attitude and cooperation from the government in order to strengthen Estonian agriculture together. It is imperative to protect our food producers to ensure that clean, home-grown food remains available to all of us in the future.

The Central Union of Estonian Farmers, the Estonian Chamber of Agriculture and Commerce and the Estonian Youth Farmers call on the government to support the submitted proposals and to actively act in support of the Estonian agricultural sector at both the national and European Union levels, to ensure the sustainability of food production and the vitality of rural areas.

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