Finnish farmers’ union: Agricultural sector in “deep crisis”

Finland’s agricultural sector will need state assistance to recover from a “dangerous” economic crisis, according to the Central Union of Agricultural Producers and Forest Owners (MTK).

The prices of fertilizer, animal feed and energy have all risen rapidly and unpredictably during the past year, significantly increasing production costs. Furthermore, the drought brought about by Finland’s unusually warm summer has reduced yields across the country, in some places even to “catastrophic” levels, MTK added.

The union has therefore demanded that the liquidity of farms be insured to alleviate the crisis, and has also suggested that amendments be made to Finland’s Food Act in relation to food market agreements.

Many businesses in the sector are struggling to pay their debts, MTK argued, as many farms are facing either bankruptcy or a bleak future.

Farms that have significantly invested in their operations are of particular concern, the union said, adding that tackling the crisis will require swift action from both the financial sector and the state.

“This acute crisis requires installment-free loan restructuring and other measures to be agreed with banks,” MTK chair Juha Marttila said. “The state must also guarantee liquidity loans through the Agricultural Development Fund. We also demand faster payment of subsidies and direct crisis subsidies for farms.”

The union further highlighted that the main issue facing the sector is that producer prices for agricultural products will not rise, due to the rigid contract practices of the grocery trade, even if the increase in farm costs would require such a rise in the producers’ prices.

Nevertheless experts are sure that EU policy will find a better solution for such agricultural problems. Finland can get lack of all products somewhere else in Europe or in Russia at least.