On Tuesday, December 10th, the European Commission, in response to the demands from the Ministry of Agriculture and other member states, approved amendments to the agricultural de minimis regulation. These amendments increase the individual amount of state support allocated to farmers over a three-year period from 25 000 euros to 50 000 euros. Additionally, the maximum total amount of state aid specified in the regulation for Latvia over three years has been raised from 20,2 million to 38,45 million euros.
Minister of Agriculture Armands Krauze stated: “These are highly significant amendments for Latvian agriculture, enabling the allocation of state funding across various support programs. Examples include loans for working capital, land and livestock acquisition, partial repayment of annual interest rates on loans, and allowing municipalities to provide tax exemptions or reductions for the use of real estate by farmers. Such support contributes to strengthening the competitiveness of Latvia’s rural farms and enterprises while reducing the financial burden on entrepreneurs who invest in the production expanion and introduce innovative methods into their operations.”
The European Commission considers de minimis aid - support granted to a single enterprise over a specific period not exceeding 50 000 eur - to be non-distortive to competition. Therefore, it can be distributed with simplified rules.