Latvia plans to increase direct-payment funding for farmers by €35.25 million in 2027, bringing the total budget to €398 million. This does not mean an equal additional payment for every farm: most of the new funding is intended for specific eco-schemes.
Has the additional funding been approved?
On 28 August 2026, the Ministry of Agriculture submitted amendments to Latvia’s Common Agricultural Policy Strategic Plan 2023–2027 to the European Commission. The amendments and the proposed funding allocation will enter into force only after Commission approval.
Where will the additional funding go?
Most of the funding is intended to increase payment rates under three eco-schemes:
- agricultural practices beneficial to the environment and climate;
- soil-conserving agricultural practices;
- the use of precision fertilisation technologies.
Farmer participation in these schemes has been higher than originally forecast since 2023. Consequently, actual payment rates have not reached the levels initially planned.
Will other direct payments increase?
The additional funding could also raise the basic income support for sustainability by approximately €5 per hectare. The redistributive payment for areas between 30.01 and 100 hectares is also expected to increase, although its final rate has not yet been announced.
Why is the support being increased?
According to the Ministry of Agriculture, mineral fertiliser costs in 2026 remain approximately 68% above their pre-crisis level. Agricultural input costs overall are more than 40% higher.
The additional support is therefore focused on practices that preserve soil fertility, reduce intensive soil cultivation and improve fertiliser efficiency.
What should farmers do?
- Assess whether the farm meets the requirements of the priority eco-schemes.
- Organise field records, soil analyses and evidence of the technologies used.
- Do not treat the additional payment as guaranteed income before Commission approval and publication of the final 2027 rates.
- Monitor updates from the Ministry of Agriculture and the Rural Support Service.
Frequently asked questions
Will every farm receive part of the €35.25 million?
No. The funding will be allocated between support measures. The payment to an individual farm will depend on its eligible area, selected eco-schemes and compliance with their requirements.
Are the final 2027 rates already known?
The Ministry expects the basic income-support rate to increase by approximately €5 per hectare, but the complete final rates will be known only after European Commission approval.
Sources: Ministry of Agriculture; Rural Support Service; Latvia’s CAP Strategic Plan. Information updated on 3 September 2026.
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