Estonian farmers to get less EU funding in real terms
Estonian farmers will have less EU funding available in the next budget period starting in 2028 when adjusted for inflation, even though the nominal amount may increase slightly.
Discussions are ongoing in Estonia on how to allocate EU funds to various sectors for the next budget period beginning in 2028. Although negotiations are not yet concluded, it is already clear that farmers will have less EU funding in real (inflation-adjusted) terms than in the current period.
Government ministries have already submitted initial funding requests to the Minister of Finance, but since all requests exceeded available funds by more than double, ministries must cut back and submit revised proposals by Friday. Madis Pärtel, deputy secretary general of the Ministry of Regional Affairs and Agriculture, told ERR that they initially requested €1.2 billion from the EU fund pool for farmers, which they now plan to cut by €200–400 million.
According to Pärtel, compromises will be necessary, and there is room to adjust co-financing rates for investments. In food production, the state covers part of the cost while the private sector contributes, typically 30%, 40%, or 50%. Increasing the private share can achieve savings.
Farmers already can count on approximately €1.6 billion proposed by the European Commission specifically for Estonia, with additional national co-financing to be decided. During the current budget period, farmers had access to €2.3 billion. If the government approves the reduced request, the next period would total €2.4–2.6 billion—about 5–10% more nominally. However, this comparison is based on figures from seven years ago when current period agreements were made.
Ants-Hannes Viira, head of agricultural policy at the Chamber of Agriculture and Commerce, cautioned against concluding farmers will receive less until final decisions are made. He emphasized the need to carefully consider how to use future budget funds to strengthen agriculture.
Anti Allas, a Social Democrat and member of the Rural Affairs Committee, pointed out a trend where Estonia channels a much smaller share of EU funds outside major urban centers compared to other European countries. In other EU states, rural areas receive two to nine times more funding per capita to support more challenging regions.
Arvo Aller (EKRE), also a committee member, expressed a more pessimistic outlook, stating that everyone has been tasked with cutting spending regardless of feasibility.
