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After negotiations from Brussels on the multi-annual budget of the European Union (EU), the returning president, Gitanas Nausėda, was greeted as a hero, wearing a crown of oak leaves.
Photo by Valdas Kopūstas / 15min / After returning from Brussels, G. Nausėda comments on the decisions made by EVS
The President received a long-awaited gesture of respect from the Deputy Minister of Agriculture Evaldas Gusto, who conveyed the message that direct payments to Lithuanian farmers will soon increase.
This year, the average direct payment is 170 euros per hectare, in 2021 it will reach about 177.7 EUR / ha, and from 2022 it will increase to 200 EUR / ha.
However, representatives of small farmers are not particularly happy about that. This increase will not accumulate great fortunes for them, and the landowners who have concentrated thousands of hectares in their hands will be further strengthened, as hundreds of thousands of euros will be added per year.
Instantly understand
- Direct payments will be paid for each eligible hectare declared at the time of declaration of crops and other land.
- The declared areas must be managed legally on one of the bases of the management law: property, rent, use.
Incidentally, last year the then acting Minister of Agriculture, Giedrius Surplys, had introduced a “limit” of direct payments of up to 150,000. However, the current Minister Andrius Palionis tacitly lifted this restriction without even informing the representatives of the farmers.
Photo by Sigismund Gedvila / 15min / Combine in the fields
The euphoria for more support makes me laugh
President of the Lithuanian family farmers union Vidas Juodsnukis 15 minutes He said the president’s joy in negotiating higher direct payments for small farmers is a laugh.
According to him, the biggest benefits will come from large farms and agricultural companies, which manage almost half of the agricultural land in Lithuania and will absorb most of the total EU support.
“The euphoria is unfounded and a laugh, because we know how the funds will be distributed incorrectly. The Lithuanian countryside really does not need to be happy that the payments have increased by several euros, because only large farms will benefit.
It is not really necessary for the Lithuanian people to be happy that the payments have increased by several euros, because only the large farms will benefit, V. Juodsnukis said.
“Does the President not understand or do not know the situation that Lithuania’s agricultural policy brings to its eastern neighbors, because agricultural companies are expanding and family farms or rural development are not taking place at all”, V. Juodnuskis I was angry.
The fact that a large part of direct payments is generally intended for larger farms and farmers, emphasizes Klaudijus Maniokas, a public administration expert and chairman of the board of the consulting firm ESTEP.
“A few years ago, the biggest beneficiary of profits in Lithuania was the big Auga company and the big grain farms, like those run by Agrokoncerno,” emphasized K. Manokas.
A few years ago, the biggest beneficiary of the benefits was the large Auga company and the large grain farms, such as those managed by Agrokoncerno, – stressed K.Manokas.
He noted that direct payments are not taxable in Lithuania, therefore increasing them will only further increase income inequality in Lithuania.
Top 30 beneficiaries
15 minutes At the request of the Ministry of Agriculture, the TOP30 of the largest recipients of direct payments in Lithuania was presented, led by the Plains Agricultural Company, almost one million, 925 thousand were paid. euros
The agricultural company Lygumai, whose largest shareholder is Petras Ivanauskas, states in its financial statements that it employs almost 6,000 people. hectares of land.
In second place, the agricultural company Kurš empresanai owned by Lytagra, which received 665 thousand. In the third, the Linas Agro Group, managed by the Žibartoniai agricultural company in the Panevėžys district (€ 655 thousand).
UAB Krekenava came in fourth place (€ 618,000) and Lytagra Agricultural Company finished in the top five (€ 554,000).
| Plains Farm Company | 925 thousand |
| Kuršėnai Agricultural Company | 665 thousand |
| Panevėžys District Agricultural Company Žibartoniai | 655 thousand |
| Krekenava Private Limited Company | 618 thousand |
| Lytagra Agricultural Company | 554 thousand |
| Agricultural company “Draugas” | 554 thousand |
| Kėdainiai District Okainiai agricultural company | 534 thousand |
| UAB Kietaviškių ABusa | 529 thousand |
| Šakiai Lukšiai District Agricultural Company | 499 thousand |
| Agricultural company Padov | 496 thousand |
| UAB Kalpokų ūkis | 488 thousand |
| Agricultural company of the Pasvalys district “Kiemeliai” | 485 thousand |
| UAB AUGA Grūduva | 475 thousand |
| Individual | 461 thousand |
| Kėdainiai Labūnava agricultural company district | 459 thousand |
| Papilė Agricultural Company | 454 thousand |
| Ingleby Lithuania Agro UAB | 446 thousand |
| Pakistojis district agricultural company Guostagalis | 442 thousand |
| Pakruojis d. Sparrow Farm Company | 438 thousand |
| ŽŪB “VG Ausieniškės” | 436 thousand |
| Pauliukai Agricultural Company | 425 thousand |
| Žeimelis Agricultural Company | 424 thousand |
| Individual | 398 thousand |
| Silver Agricultural Company | 398 thousand |
| UAB Vikebas | 375 thousand |
| Kubiliai Agricultural Company of Šakiai District | 369 thousand |
| UAB “Tetirvinai” | 361 thousand |
| Agricultural company of the Paneviažys Ėriškiai district | 354 thousand |
| Agricultural company “Ginkūnų agrofirma” | 349 thousand |
| Agricultural company of the Pasvalys district “Vaškai” | 342 thousand |
Source: Ministry of Agriculture.
However, the real beneficiaries of this list are not clear, since most of the companies that make it up belong to large agricultural groups.
Dozens of companies operating several dozen different farms have accumulated thousands of hectares of land leased and owner-occupied, receiving millions of euros in payments a year.
The biggest landowner – Grupo Auga
Most of the land in Lithuania is owned by the Auga Group, which develops organic farming and food production, and whose main shareholder is businessman Kęstutis Juščius.
The company’s financial report presented to the Records Center states that in 2019–2020, the total area of arable land (both owned and leased) by the group companies amounts to 39.7 thousand ha. say ah. During the year, the area administered by the group increased by almost 1 thousand. say ah.
Josvydas Elinskas / 15min photo / Products “AUGA group”
Auga Group 15 minutes He declared that in 2019 he received a total of about 6.5 million. 5.4 million euros in grants. The rest were direct payments and the rest were subsidies for organic agriculture.
If the average level of direct payments increases after a couple of years, the subsidies received by this company should also increase significantly.
Kęstutis Juščius, Managing Director of the Auga Group 15 minutes argued that the comparison should not be made in absolute terms but in payments per hectare. In the latter case, small farms receive on average more than large agricultural companies because they receive additional incentives. For example, they receive additional payments of € 60 for the first 30 ha and € 54 per ha for young farmers under the age of 40.
The Auga group does not claim this type of direct payments, therefore we only received around 140 Eur / ha of direct subsidies in 2019. This is less than the presented average of Lithuanian direct payments of 177 Eur / ha and much less than the payments that a small farmer can receive up to 40 years ”, emphasizes K. Juščius.
According to the company’s calculations, plus subsidies for organic agriculture, the company receives 1.6 times less than a young farmer who develops organic agriculture.
Large landowners also mention that large companies hire more workers, work large areas of land, and incur higher costs. For example, the Auga group companies employ about 1,200 people, receive a salary above the sector average, and the group companies attract qualified young professionals to the field, who create new jobs and export most of their production.
Instantly understand
- Direct payments consist of five separate support schemesaimed at achieving different goals.
- Basic direct payment – a payment of EU funds paid to the applicant by the area declared eligible for support in the current year under the single area payment scheme.
- Payment for the first hectares. – an additional payment of EU funds for the first (up to 30 ha) hectares of agricultural land declared by the applicant.
- Injury benefit – an additional payment of EU funds for more environmentally friendly farming activities.
- Payment to a young farmer – an additional payment of EU funds for the declared area to an applicant eligible for the young farmer payment.
- Joint support for the area and livestock. – additional support from EU funds paid to an applicant declaring a certain area of agricultural land to grow vegetables other than potatoes indoors (heated greenhouses) and in the open, as well as for the cultivation of fruits, berries, protein crops, sugar beets, potato seeds and cereals breeding certified seeds, dairy cows, cattle and sheep for fattening, dairy bulls, dairy goats.
- Source: Ministry of Agriculture.
R.Karbauskis empire – not a million
At the press conference in 2018, leaders of Agrokoncernas, the leader of the Ramūnas Karbauskis peasant empire, revealed that the group already controlled a total of 36,000 people at the time. hectares of land, of which 22 thousand. the hectares were their own.
Marius Vizbaras / 15min photo / Agroconcern headquarters
15 minutes Agrokoncerno asked how many companies received direct payments, but did not provide data. Therefore, we can calculate the amount of direct payments from this company only tentatively.
If the average direct subsidy is currently 170 EUR / ha, Agrokoncernas can claim approximately 6.12 million. EUR of direct payments per year, and when they increased to 200 EUR / ha, even one million more, 7.2 million. euros
Another large company, Linas Agro Group, whose main shareholder is Darius Zubas, reports to the Records Center that it employs about 17,300 people. has land.
Jorinta Zolubaitė, Communications Manager of the Linas Agro Group 15 minutes reported that in 2019. June 30 In the fiscal year ended December 31, 2006, the group companies received a total of 3,186 million. subsidies for livestock, crops and milk.
Therefore, calculating that the average support will increase to 200 EUR / ha, the company may request, according to preliminary calculations, up to 300 thousand more payments in a couple of years.
Dozens of hectares of owned and leased land are used by dozens of other companies, according to a study published last year by “Ratai” magazine and the “Delfi” portal, companies related to the Northern Wolf group of companies employ more than 12 thousand. The company owned by Litagra owns around 9 thousand ha of land, the agricultural companies of the Vičiūnai Group – 8.6 thousand ha, Lytagra – 6 thousand ha. ha, Agra Corporation – 5.2 thousand. hectares
The installed “roof” is quietly removed
Small farmers are more concerned that in Lithuania, unlike many EU countries, there is no “limit” on how many direct payments a single economic entity could receive.
“Farmers are happy with the increase in direct payments, because in Germany and other countries, farmers get more money, but there are also restrictions on how much they can receive, which is an incentive for more family farms to be mobile, entrepreneurial and viable, “he said. with 15 minutes emphasized Arūnas Svitojus, president of the Chamber of Agriculture.
It is true that such “roofs” have already been introduced in Lithuania. Last July, then acting Minister of Agriculture G.Surplys signed a description of the procedure to reduce the Basic Direct Payment, limit direct annual payments per farmer to 150 thousand. euros
Julius Kalinskas photo / 15min / Giedrius Surplys
Before that, of the amount greater than 150 thousand. EUR, wages and taxes related to wages are deducted.
However, this restriction was secretly lifted by the current Minister of Agriculture, Andrius Palionis, in April this year, without even informing the representatives of the farmers.
Pixebay Photo / Agriculture
“It just came to our attention then. Why? The ministry does not speak to the municipality and does not explain why it made one decision or the other. The ceiling was introduced by the former minister, and the current one, without consulting either the Seimas or farmers raised the roof. We are shocked by this, “asked the president of the Chamber of Agriculture A.Svitojus.
The ceiling was introduced by the former minister, and the current one, without consulting either the Seimas or the farmers, raised the ceiling. We are shocked by this ”, asked the president of the Chamber of Agriculture A.Svitojus.
“The European Commission has proposed paying up to 60 thousand. EUR for direct payments. In Lithuania, 150 thousand were planned. But the ministry lifted that restriction as well,” said V. Juodsnukis.
The Ministry of Agriculture objects that the restriction was secretly lifted.
“When the 2020s were introduced. Crop declaration topicality, the Seimas, employees of agricultural departments, farmers were informed about it,” it is written 15 minutes In the response sent.
Representatives of the Ministry affirm that the restriction was lifted because it did not work. Direct payments consist of several parts, and since the EU allows restrictions to be placed on only one of them, no Lithuanian company has exceeded the established payment limits. Furthermore, according to representatives of the Ministry, there are several plans in Lithuania that offer additional incentives to small farmers.
“Taking into account the unfavorable EU legal provisions for the application of the benefit limit and considering the resulting administrative burden, the limit will not apply in 2020,” the Ministry of Agriculture said in its response.
However, A. Svvitojus is surprised by such a response: if the restriction did not work, instead of abolishing it, it was necessary to reduce the cartel.
“It was not necessary to eliminate them, but to reduce them to make them work,” the head of the Chamber of Agriculture was outraged.
“The point is that the EU ceiling is 60 to 100 thousand. We have adopted an unattainable ceiling and yet we set wages and costs so that they are not really reached. It was not necessary to eliminate them, but to reduce them to work “, the head of the Chamber of Agriculture was outraged.
By the way, according to the Ministry of Agriculture, up to 23 states or regions apply the benefit reduction mechanism.
Of these, 9 states deduct wages from the amount of aid, 15 states chose the smallest possible reduction: more than 150 thousand. The amount of euros is reduced by 5 percent, 9 countries have chosen the largest possible reduction: more than 150 thousand. The amount of euros is reduced by 100 percent.
5 percent have half the support
Farmers claim that member states are asking member states to set a “limit” on direct payments.
“Ceilings are mandatory if we think about sustainable agricultural and rural development. We are one of the few countries that increases the gap between wealthy large estates and family farms,” emphasizes A. Svvitojus, affirming that Poland, Austria and other countries have restrictions .
Luke April photo / 15 minutes / Arūnas Svitojus
According to the president of the Chamber of Agriculture, currently 5 percent. farmers receive 50 percent. All EU support, so big companies continue to grow, swallowing smaller farms.
Although EU support focuses on rural development and strengthening farmers’ families, the trend is the opposite: according to A. Svvitojus, the number of farmers has halved in the past 10 years.
“If 5 billion are allocated. EU support is 5%. It shares 2.5 trillion euros, and all the rest – crumbs”, – lamented A.Svitojus.
V. Juodsnukis also emphasizes that farms in Lithuania are highly polarized: large factory farms are growing and the village is disappearing: around 100,000 people work in Lithuania. up to 100 ha of farms and about 20 ultra-large farms.
General Support Cake: Smaller?
Although the Presidency emphasizes increasing direct payments to farmers, economists note that the total amount of support allocated to agriculture and rural Lithuania in 2021-2027 is decreasing.
As the politician and economist Aušra Maldeikienė noted on Facebook, it is planned to allocate 5 billion LTL to agriculture and rural Lithuania. 141 million euros. € 71 million less than at the start of the debate on the new financial perspective and less than in the current period.
Photo by Lukas Balandis / 15min / Aušra Maldeikienė
For example, in June 2018, the EC announced that it proposed to allocate 5,141 million LTL to agriculture and rural areas in Lithuania in 2021-2027. euro aid
“Then Dalia Grybauskaitė was angry and everyone felt they were hurting us. Now it is planned to allocate 5 billion euros,” wrote A. Maldeikienė.
K. Manokas also agrees that the total figures for the financial perspective for 2021-2027 have decreased after the negotiations compared to the European Commission proposal, also for agriculture.
Meanwhile, the Ministry of Agriculture objects that support for agriculture is less than planned.
According to the Ministry’s calculations, in 2021-2027. Preliminary estimates for rural development and direct payments are around 5.5 billion euros. EUR (at current prices) and 2014-2020 (at current prices) was estimated at € 4.7 billion.
“In addition, the new 2021-2027 Reactivation and recovery funds are charged to rural development in the period 2007-2013, around 143 million. This further increases the total to € 5.6 billion.” The ministry said.
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