In Latvia and other European Union countries, farms are primarily run by middle-aged people; the average age of a farm owner in Latvia is 57. The trend suggests that this situation is not improving, Latvian Radio reported on 31st March.
At the annual congress of the “Zemnieku Saeima” (Farmers’ Saeima) association, which brought together industry representatives from all over Latvia this month, one of the main topics of discussion was the generational transition in rural farms. Farmers under the age of 40 are considered young farmers.
Valters Zelčs, a representative of “Zemnieku Saeima,” said that generational change will become an acute problem in the future if no solutions are found, as only about 10% of farmers in Latvia and Europe as a whole are under 40 years of age.
“This means that the vast majority of farmers are over 40. The average age is 57, and half of all farmers are already at retirement or pre-retirement age. So the worst part is actually that the trend is not that the average age of farmers is falling, but that it is rising. Consequently, it is clear that this cannot go on indefinitely, but the question is what we can do, since there have also been various programs for young farmers up to now. Whether it’s better support levels for building or purchasing something, or starting a farm from scratch, but obviously, that’s not enough to motivate young people to enter agriculture.
“The second thing is that there aren’t just legal or financial problems, but often there are also purely human problems, because there are families with multiple children, and how will they now agree on who will take over the farm, since the farms are quite valuable on the balance sheet, and at the same time they cannot agree, but they also cannot divide the farm, because if the farm is capable of operating, say, with 80 dairy cows, then dividing it into two would result in two unsuccessful businesses doomed to bankruptcy,” Zelčs concluded.
Meanwhile, young farmer Ģirts Dzērve recently officially took over his parents’ farm, Drubazas, in Abava Parish. His parents primarily focused on grape growing and agritourism, but their son has also chosen to raise livestock to manage the valuable 40-hectare organic pastureland and generate additional income. Ģirts explained that he grew up on the farm and always knew he would take it over.
“Perhaps, as a young person, I had some doubts about what to develop on the farm now to make it profitable and sustainable, because a lot has been tried on the farm since the 1990s. You name it – dairy cows, beef cattle, sheep, chickens, and even cabbage and potatoes have been grown. And it’s just a matter of figuring out which sector to further develop, because relying on a single sector is risky – if something changes in that sector, the farm needs diverse sources of income. Even though you grew up on the farm and have always been involved in everything, no one really wants to hand over the reins to you right away. So try it out for a couple of years to see how it goes, because it’s not just about farming. You also have to plan—for example, I had to plan for larger financial reserves,” explained Dzērve.
When asked why farms in Latvia are generally slow to be taken over by young farmers, he noted that many of his peers have the passion and desire to start working right after graduation, but lack the funds.
“Starting from scratch is financially difficult because you can’t accomplish much with just your hands; to make the work more productive, you need to invest in equipment. But a young person is a risk. Loans are impossible or very hard to get, and parents wouldn’t want to see their child come along now, put the farm up as collateral, take out loans, and develop the business at the farm’s risk. That’s the challenge,” the farmer said.
Meanwhile, Guntars Dzērve, a strawberry grower from Mālpils Parish, said that it seems there will be no generational transition on his family’s farm, as the younger generation has chosen other professions. At the same time, he confirmed that consumers are increasingly demanding local produce.
“Our ambition is that if we’re at 55 now, we definitely want to stay active until at least 70 and not get off that horse, but keep ploughing ahead. We hope that someone will step up; if none of our young people is interested in this path, then I hope that perhaps one of the landowners might return to their roots,” said the farmer.
The European Commission’s strategy notes that without new farmers, Europe risks losing not only skills and innovation, but also the ability to ensure a stable food supply and maintain thriving rural communities. Europe’s goal is to double the proportion of young farmers and newcomers by 2040.
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