Available for young farmers and small farms

Two sub-measures of the rural development programme “Rural and Business Development” have been a major interest in farmers. From 14 August to 15 September of that year, the adoption of project applications shall take place in the sub-measure “Support for young farmers to start business”.
Only the livestock sector should be supported in this respect. Start-up may be provided if the standard output of the holding (SI) is provided at least EUR 15000 for both the establishment and the acquisition of the farm. Support conditions to be read on the website of the rural support service www.lad.gov.lv under: types of aid/projects and investments. Cabinet Regulation NO. The list of project selection criteria is set out in Annex 323.
From 3 September to 5 October of that year, the adoption of first-round project applications in sub-measure will be held “Support for business start-ups through the development of small farms”. You can also read the conditions ON THE LAD website. In the “Support types” menu, you can see a list of consultancy services. The list of project selection criteria in this sub-measure is to be seen in the Annex to CABINET Regulation No. 292.
To calculate the above-mentioned farm standard (in monetary terms), it is easier to open GOOGLE and search FOR THE SI calculator. For small holdings, this SI shall not exceed EUR 15000.
The calculation of the standard output and the evaluation of the project selection criteria are the beginning to understand whether the economy has an opportunity to start the project (one or the other).
Here are serious calculations. Who should pay particular attention? First of all, the owner must understand what the development possibilities of the farm are, how much the farm is viable, how efficient and efficient the use of the resources resulting from the implementation of the project will be. Many farms are in a situation where there is no possibility of physical increase in areas, increased herds. What are the options? Either we don't know what we are, or we are counting, analysing and thinking. There is a lot of work to be done on quality indicators, such as what kind of livestock we grow, what productivity indicators are. What can be changeable? How will the increase be achieved?
All indicators must be economically justified. The word “efficiency” should be kept in mind throughout the design and implementation of the project. It will not be economically justified growth and efficient use of resources if, for example, there were 3 dairy cows in the herd and the number of the project was increased by 1 cow during the implementation of the project.
Careful attention must be given to cases involving the division of holdings, as it is strictly established that artificial separation of one holding is not permitted. One economic unit will be evaluated - location, management, resources.
If the aid measure “aid for the restructuring of semi-natural holdings” has been previously started, it is necessary to examine whether the revenue has been reduced.
Why are these issues highlighted? THE LAD will assess the quality of the business plan and the relevance of the planned investments to the objectives to be achieved and whether the objectives pursued have been achieved.
If the aid applicant fails to achieve the objectives set out in the business plan and has reached the economic indicators, THE LAD will be entitled to request repayment of the aid received in full.
Anastasia Saleniece,
rural development consultant