The European Commission (EC) has approved the third round of amendments to Latvia’s Common Agricultural Policy (CAP) Strategic Plan for 2023-2027, developed by the Ministry of Agriculture (ZM).
Minister of Agriculture, Armands Krauze, stated: "After the first year of implementing the Common Agricultural Policy, we together with agricultural and food producers concluded that urgent changes were needed in several support measures to reduce the burden of various requirements and conditions and to increase farmers' interest in applying for a broader range of support. The approved changes will now simplify and ease the application process for farms and food production companies to receive EU support."
The amendments to the CAP Strategic Plan were made in response to changes in EU regulations. In May 2024, a simplification regulation came into force, removing the requirement under Good Agricultural and Environmental Condition (GAEC) standard 8.1, which mandated that part of arable land be allocated to non-productive areas, including fallow land. Instead, support will be provided through eco-schemes.
As a result, Latvia’s CAP Strategic Plan has removed the GAEC standard requirement and introduced conditions for a new eco-scheme, "Creation or Preservation of Landscape Elements. " This scheme focuses on establishing and maintaining non-productive areas on arable land and creating new landscape elements.
These changes will apply from 2025, and the Ministry of Agriculture will promptly implement the necessary amendments to relevant Cabinet of Ministers regulations to ensure the adoption and execution of the revised CAP Strategic Plan.
Additionally, several adjustments have been made to rural development measures within the CAP Strategic Plan:
- "Harvest, Livestock, Crop, and Plantation Insurance Premiums" now includes partial compensation for farmers purchasing insurance policies to cover losses caused by predators.
- "Cooperation for Promoting Short Food Supply Chains and Ensuring Supply" will allow simplified cost calculations for transport, including fuel expenses, following the simplified cost methodology to minimize administrative burden.
- "Implementing Actions in Line with Local Development Strategies, Including Cooperation Activities and Their Preparation" will no longer apply the rural area definition to the simplified cost measure "Youth Initiative." For interterritorial and transnational cooperation support, justification for the implementation area must be provided in the respective cooperation project rather than in the local development strategy.
Additionally, producer organizations will now be able to include intangible investments—such as websites and digital tools—as well as measures related to research, experimental, and innovative production methods in their operational programs. Furthermore, eligible cooperatives in other sectors will also have the opportunity to apply for support measures related to intangible assets.
A total of €2.5 billion has been allocated for implementing the CAP Strategic Plan for 2023-2027. The majority of this funding—€1.714 billion—is designated for direct payments. Rural development measures will receive €0.791 billion, while market organization support measures are allocated €10.1 million.