The Latvian Cabinet has decided to implement an agricultural emergency across the country, lasting until November 2025, in response to damage caused by persistent rainfall, frost, and flooding in recent months, LSM.lv reported on August 6.

While other European nations have been battling extreme heat and drought, Latvia has faced the opposite – relentless downpours are the primary threat, damaging crop yields and causing a spike in prices for locally produced goods in some instances due to poor returns.

As previously reported by bne IntelliNews, amid the budgetary crunch – the result of the rapidly steepening defence budget – the government has asked ministries to come up with budget cuts to meet the shortfall.

Though the declaration may sound dramatic, it is procedural mainly – designed to fast-track financial assistance for the sector.

Prime Minister Evika Silina commented: "It is important to support farmers in the current situation, when the rains have severely affected a large part of the countryside, the harvest has been damaged, and farmers are suffering losses."

"We have decided in the government to declare a state of emergency. We will ease the requirements and thus mitigate the consequences to help the industry recover," Silina said.

This measure grants the State Revenue Service leeway to avoid sanctioning farmers unable to meet tax obligations due to weather-related disruptions in 2025.

Agriculture Minister Armands Krauze described the situation as a “real crisis” and called for the European Commission to provide emergency support to Latvian farmers.

Latvian banks and other lenders will be allowed to offer relief such as pausing loan repayments, altering repayment terms, or adjusting interest obligations – all without penalties – under the framework of the emergency status.

This emergency declaration comes after several consecutive years of severe weather losses, exacerbating financial pressures on Latvia’s small agricultural sector.