The Lithuanian Ministry of Agriculture has decided to try to use a quarter of a billion of euros for eliminating grain producers

    “So far, some sectors have received relatively more investment support than others, which has led to a disproportionate share of agricultural production in Lithuania in the cereals sector, which creates little added value nationwide - correspondingly, we create less value per hectare than other EU countries.

    We aim to change this, therefore in the transition period of 2021 - 2022 according to the Lithuanian Rural Development Plan 2014-2020. The program (RDP) will significantly increase support for investments in those sectors that create higher added value and were previously insufficiently funded and which we strategically seek to develop, ” - says Minister of Agriculture Kęstutis Navickas.

    During these two years, a total of  227.6 million euros will be allocated under the RDP measure “Investments in agricultural holdings”. It is estimated that, on average, almost twice as much investment support will be distributed per year than before.

    To receive support, farmers themselves will have to invest at least half of all the funds needed for investment. This money will have to be spent by June 2025, so it is expected that a total of up to 0.5 billion euros will be invested in new equipment, farm buildings, production development, better conditions for animals, and reduction of pollution.

    It is estimated that 45 percent. all support funds should be allocated to dairy farming. By comparison, the sector has so far received about a third of all investment support. The development of this sector is important due to strong Lithuanian processors who lack local raw materials for dairy products.

 

    There will be a significant increase in support for berry growing and horticulture, which accounted for 18%. support, and investment in greenhouses (8%).

 

    Nearly a quarter of all investment support will go to the pig and poultry sectors, which have been plagued by global challenges in recent years.

 

    The Ministry of Agriculture also identifies priorities that will be important in assessing applications for investment support. Priorities will be given to promoting production, cooperation, higher quality and added value, digital technologies. Investments in organic farming, reduction of fertilizer and pesticide use, lower ammonia and greenhouse gas emissions are also encouraged.

 

    "Over the last two decades, more than a billion euros have been invested in agricultural holdings and about 40% these amounts went to the cereals sector. Now, in two years, we will allocate a quarter of a billion euros to those sectors whose development in the country is insufficient and which create greater added value and meet the state goals and expectations of the population - to eat healthy Lithuanian products made in an environmentally friendly way, ”says K. Navickas.

 

    At present, Lithuania does not fully supply itself and imports about half of fruits, vegetables and pork. However, Lithuania produces about three times more grain, beef and mutton than it needs. The country's processors are also short of milk on the local market."

 

 Those poor grain farmers are working with grain because no one goes to do hard agricultural work for small Lithuanian salaries. People who can do this, work in Western European countries for decent wages. Therefore, grain growers rely on tractors, fertilizers, pesticides and harvesters. Growing grain in this way does not require many workers. K. Navickas does not explain how he proposes to solve the problem of labor force in Lithuanian farms.