On Friday morning, the Parliamentary Commission on Agriculture met to discuss two motions demanding financial support for farmers. An analysis of the production costs in the agricultural sector was also presented to MPs.
In particular, high energy costs as well as the prices of nitrogen fertiliser and wheat present significant challenges to the country’s farmers. However, one of the conclusions of the meeting was that farmers will have to wait at least until the end of the month until concrete proposals for financial aids have been submitted.
About 30% of global wheat exports come from Russia and Ukraine. But the “breadbasket Ukraine” is no longer operational, Minister of Agriculture Claude Haagen stated. The same is true for Russia, where gas energy is used to produce nitrogen fertiliser. Energy prices were already high following the relaunch of the economy after the Covid-19 pandemic but now they are increasing even further. The price of nitrogen fertiliser, for example, has tripled.
“Of course, we will react to this,” Haagen stressed. Struggling sectors will be subsidised but aids should also be granted and authorised by the European Commission. After all, Haagen pointed out, Luxembourg is not the only country that is affected, but all of Europe.
For MP Martine Hansen from the Christian Social People’s Party (CSV), the government missed its chance to react fast enough. She argues that rising energy prices have been an issue for a long period of time. While the government has decided to wait for the European Commission, Hansen thinks that farmers could have already been given a perspective, stressing that “Luxembourg can take a unilateral decision”.
The MP points out that Poland has asked the European Commission this specific question and received the reply that every country can accord direct aids, as long as they are authorised by the Commission. As such, Hansen argues that Luxembourg does not have to wait for the green light from the Commission and could make proposals itself. The CSV MP stated that she hopes that the government will realise in time that it is paramount to protect national and European food production.
MP Jeff Engelen from the Alternative Democratic Reform Party (adr) fears that the time to accomplish this goal is running out. Engelen points out that his party submitted two motions calling for aids for farmers even before the war in Ukraine broke out. The problem of high energy prices was already present four months ago and now there is war in Ukraine, which the MP describes as “a cheap excuse to once again do nothing”. Engelen stresses that farmers need to be able to plan ahead as sowing season is about to start.
Meanwhile, Minister of Agriculture Claude Haagen stated that it is “clear” that there is a problem that needs to be solved “within the next two to three months”. However, Haagen argued that this is no reason to “panic”. On 8 March, the European Commission is expected to release a report on the situation of farmers in Europe. The report will be discussed, at the latest, on 21 March in Brussels before a decision will be taken.
