State aid: Commission approves €3 million Latvian scheme to support small farmers affected by coronavirus outbreak

The European Commission has approved a €3 million Latvian scheme to support small farmers affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Under the scheme, the public support will take the form of direct grants. The scheme will be open to micro and small-sized enterprises active in the agricultural primary production sector. The purpose of the scheme is to ensure the viability of small farmers and to maintain the stability of farm income during and after the outbreak. The measure is expected to benefit around 14,000 beneficiaries. The Commission found that the scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €225,000 per company active in the primary production of agricultural products; and (ii) the scheme will run until 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.62195 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.