As farmers speak out about possible legal action, MAA hopes for a peaceful resolution
The National Paying Agency (NPA) started sending farmers consent forms last week to agree that the funds for projects implemented under the measure "Support for investments in agricultural holdings" of the Lithuanian Rural Development Programme (RDP) 2014-2022 will be transferred to them only next year from the Strategic Plan funds.
A large number of farmers have signed these agreements, but a significant number of farmers estimate that they will have to pay huge interest, fines and penalties. Farmers have even started to consider legal action against the State if no compromise can be found. All this was happening before Monday's meeting at the NMA headquarters in Vilnius.
A. Palionis hides behind the backs of specialists, NMA softens its stance
„Agrobite“ asked the Minister of Agriculture A. Palionis how he views the possible litigation of the MAA against farmers, but the Minister seems to have hidden from the answers behind the backs of the specialists of the Public Relations and Cooperation Department. The latter have sent the overall position of the MAF.
„The MAFF fully understands farmers' concerns about payments under the measure "Support for investments in agricultural holdings" of the Lithuanian Rural Development Programme 2014–2022. The Ministry is very keen to resolve the situation smoothly and as soon as possible," the MAFF said in its reply. "First of all, we would like to stress that the consent forms sent to farmers are a temporary measure to allow for the possibility of transferring payments to the next year, thus ensuring the continuity of the projects and the payment of the funds from the Strategic Plan. The signing of these forms is voluntary and the aim of the Ministry is to make the conditions more flexible for applicants in order to avoid project stoppages.
The MoFA's response also adds that „solutions are actively sought to ensure that commitments to farmers are met on time and do not create additional financial burdens“.
„As regards the possibility of a class action, we believe that a solution can be found through dialogue and constructive cooperation and that this situation should not escalate into litigation. The Ministry's priority is to ensure that the financial commitments are met as soon as possible, and to provide clear and accurate information to all applicants," the MAFF said in a more subdued tone.
How does the NMA see the situation?
For its part, the NMA does not seem to be making light of the situation regarding a possible class action and, among other things, reminds that „the funds would reach these farmers (who will not sign the consents) much later than the ones who agreed to change the source of funding“.
„If the beneficiary expresses the need, the NMA will provide letters of guarantee confirming that the aid will be paid in Q1 2026. The NMA has no legal capacity to grant compensation to farmers," the NMA said in its reply.
„Agrobite“ recalls that these replies were received before the farmers' visit to the NMA last Monday (17 November).
Later on, both the NMA and the MAA started to look for some compromises and solutions to the situation, and at the meeting of the Seimas Committee on Rural Affairs, which took place on 19 November, they assured the parliamentarians that they would try to find other ways to alleviate the situation of the farmers who had been denied support.
Among others, some farmers' organisations would not support a possible lawsuit by the farmers in question at all.