The idea of ​​reducing payments to large farmers has been silent: Karbauskis and a group of large farmers have saved impressive amounts.

Exactly two years ago, Lithuanian policy and farmers were surprised by the news: at Europe’s request, maximum profit limits will be introduced, which cannot exceed 150,000. per year per natural or legal person (called modulation). However, this redistribution of EU support did not occur, it was virtually avoided.

Deducted wages

“The idea of ​​reducing payments was abandoned, but the Ministry of Agriculture (MoA) did so quietly, without any discussion with farmers. First, it was decided that wages and reductions could be included in the calculations only if the benefits, even after deduction of wages, would still exceed 150 thousand euros.

Last year’s area statement revealed that there was no entity to which modulation could be applied. This year, the Ministry of Agriculture changed the rules and, since there is no entity to which this can be applied, the modulation was abandoned ”, explains Sigitas Dimaitis, Director of the Chamber of Agriculture (UFR), how the threat was avoided of losing money.

No one knows what will happen in the new financial period. S. Dimaitis is outraged that the NRD is surprised by the very form of modulation elimination: if there was a discussion on how to introduce it, then it was necessary to discuss with the social partners whether it is worth eliminating.

Representatives from large farms say there are no criminals here. Simply the modulation itself was a mistake.

Ministry does not reveal

Let’s go back to the past. That hot 2018. Andriejus Stančikas, “peasant” chair of the Seimas Rural Affairs Commission, told BNS that the decision to reduce direct payments would allow more support for small and medium farmers, farmers could prepare for the future, when the maximum limit of direct payments can be applied throughout the EU. According to him, in two years said proposal would deprive the largest farmers of approximately 1 million. EUR for direct payments.

These funds will be redistributed to small and medium farms through the same payments. According to A. Stančikas, the “maximum limits” would apply to all companies, regardless of whether they belong to the same owner.

Simply put, the incomes of the largest farms would drop slightly. There were 27 of them in the country at that time, more precisely, 26 companies and a natural person: Ramūnas Karbauskis.

R. Karbauskis, as a farmer, could have lost a little more than 45 thousand. Euros However, this list included companies managed by Agrokoncerno: Draugas: they exceeded the limit established in 25 thousand. Euros Almost 14 thousand people exceeded the “Žvirbloniai” limit. euros

“I am not consciously interested in agriculture and do not even discuss it with my colleagues. I do this fully consciously. I also do not participate in the adoption of agriculture-related laws. I do so in full consciousness so as not to unintentionally express my opinion, which can be used Against me As soon as I hear the word “land” or “agriculture” when passing laws, I take out my card and don’t vote “, – Ramūnas Karbauskis answered the question” Delfi “about modulation and its abolition.

Delfi also tried to contact Agrokoncerno for a comment, but letters sent to the address to communicate with the media were not answered, the managers of the telephone company did not.

According to the Ministry of Agriculture (MoA), today the list of companies and people who could benefit from a reduction in benefits would be more numerous: 30 entities. The ministry declined to explain what this would affect and what amounts would be redistributed. We introduced you in 2018. List when the following data was provided:

“Our Rural Affairs Committee has chosen an amount of up to 150 thousand. When the EU offers up to 60 thousand. And up to 100 thousand. It offers the option of paying 50 or 25 percent. Benefits. It is recognized that this agricultural policy, which has it has been until now, it cannot continue, because the funds go to the big ones, who do not save the countryside, but only look for the most profitable businesses, “explains Vidas Juodsnukis, president of the Lithuanian Association of Family Farmers. that it will be proposed to lower the threshold to 60 thousand. euros V. Juodsnukis says that possibly our politicians and officials will look for ways to meet the needs of large landowners.

V. Juodsnukis says that modulation, or restriction of benefits, would allow a fairer redistribution of direct payments, because it is a support for the economy, not for business. According to him, up to 60 thousand. the farm would be up to 200 ha and this is the “ideal option”.

5 percent take 50 percent. support for

Jurgita Stakėnienė, Head of the Coordination Group of European Union Affairs of the Ministry of Agriculture, in the program. Delphi 11 He said that more than half of Lithuanian farms produce 4 thousand tons of products a year. euros These are very small amounts. Due to this farm structure, 95%. farms meet 50 percent. support, the remaining 5 percent. farms receive the other half of the support.

“This is due to the structure of our farms and we see that the farms are growing, although we are paying the so-called ‘first hectare’ payments for the first 30 hectares, for example, and allocating 15%. Direct payments envelope. Yes We compare, say, Romania, they only spend 5.3% on it, and the average farm only has 4 ha, “explains J. Stakėnienė, saying that farms of up to 30 ha receive an average of 203 euros, and farms of more than a thousand ha 143 euros per hectare In addition, much other support is provided for small farms.

V. Juodsnukis says that our problem is that large farms cultivate monocultures and that the owners only make a profit. Poles who strive to grow with a much higher added value than cereals, for example, export less grain than we do. This means that our state does not make money from it. He says that agriculture in Lithuania is managed by 7 large business groups, but he does not mention their names.

Evaluated as an error

Large farms say that removing modulation is not a bad thing, it was just a mistake and needed to be corrected.

“The noise of the reduction of benefits could not have ended any other way. We have always said that the modulation does not make sense, because when wages and other expenses are rejected we will not reach 150 thousand euros. In addition, the farm does not receive benefits from Anyway, he receives them for the cultivated land where people work and are kept, the average salary in the company is 1200 euros, “explains Jonas Sviderskis, director of the Lithuanian Association of Agricultural Companies.

He emphasizes that companies do not have tax exemptions and pay the same taxes as a shoe factory. The withdrawal of benefits would increase rural poverty. According to J. Sviderskis, due to the differentiation of payments, small farms receive on average more than 200 euros per hectare, large 105. In addition, if young farmers receive tens of thousands of euros for establishment and agricultural development, Companies do not receive any incentive to hire a young specialist.

But the great ones no longer have to be afraid

Delphi The comment sent by the Ministry of Agriculture explains how the risk of reductions was avoided and then completely eliminated:

“In accordance with the current Council Regulation No. 1307/2013 (Regulation), direct payments can only be reduced for amounts greater than EUR 150 000, the reduction can only be applied to the main part of direct payments (ie the Basic payment) Other payments (ecological payments, combined aid or payments from young farmers) cannot be included.

This reduction support measure was introduced in Lithuania in 2019. Applications for declaration of crops and other agricultural land are submitted. Although around 30 applicants (about 95% of legal entities) benefited from the reduction of benefits within the thresholds mentioned above, their benefits were not reduced because they were entitled to benefit from Article 11 of the Regulation. And to deduct from your basic payments the wages actually paid and declared for agricultural activity in the previous calendar year, including payroll taxes and social security contributions.

As the amounts of wages, salaries and social security were extremely high, none of the applicants exceeded the threshold of EUR 150 000 and did not experience any reduction in benefits. On the basis that the EUR 150 000 reduction mechanism did not work and after evaluating the resulting administrative burden, it was decided not to apply the benefit limitation in 2020. “

Excerpts from the Regulations:

“Recital 13 of the Regulation:” Member States should have at least 5% to reduce the part of the basic area payment to be granted to farmers above 150 000 EUR “

Article 11 (1) of the Regulation: “Member States shall reduce by at least 5% the share of direct payments to farmers under Chapter 1 of Title III in a given calendar year exceeding € 150,000”.

Article 11 (2) of the Regulation: ‘Before applying paragraph 1, Member States may deduct from the amount of direct payments to be granted to a farmer in accordance with Chapter 1 of Title III in a given calendar year the payments real of the farmer in the previous calendar year for agricultural activities. and declared wages, including payroll taxes and social security contributions. In cases where there is no data on wages actually paid and declared by the farmer in the previous calendar year, the most recent data available will be used. “

Question about 60 thousand. The maximum limit of EUR cannot be considered in this financial year as it is not foreseen in the Regulation. The draft regulation for the new financial period (2021-2027) is about reducing payments above that amount, but today we cannot say how the negotiations on the new acquis and the reduction of payments will end at the same time. The new financial period will begin no earlier than 2022. (2021 will be a transition period). Therefore, to date, the possibility of choosing a reduction threshold of less than 150 thousand. No Member State has EUR. “