Farmers Risk Losing Billions in EU Funding

Swedish farmers risk missing out on 1,5 billion kronor in EU support because the government is unwilling to allocate funds from the Swedish exchequer, according to the Swedish Farmers' Federation (LRF). It is a large sum that Sweden is not utilising, says Palle Borgström, chairman of LRF.

» Updated: July 16 2024

» Published: June 25 2024

Farmers Risk Losing Billions in EU Funding
Photo: Fredrik Sandberg/TT

Swedish farmers risk missing out on 1,5 billion kronor in EU funding because the government is unwilling to provide matching funds from the Swedish treasury, according to the Swedish Farmers' Association (LRF).

It's a large sum that Sweden is not utilising, says Palle Borgström, chairman of LRF.

Between 2025-2027, Swedish farmers risk losing half a billion kronor per year in compensation from the EU that will not be utilised.

This is because EU funding is tied to the euro and Swedish farmers receive their compensation in Swedish kronor. And since the krona has weakened against the euro, they are losing billions.

LRF is demanding that the government takes action to ensure that the EU funding does not remain in Brussels.

It's a large sum that Sweden is not utilising, and instead, the money is burning a hole in Brussels, continues Palle Borgström.

Increased costs

Half of the EU funding is financed by the Swedish state, and the other half by the EU.

The reason they are not getting the money is that the Swedish state is not willing to pay its share, according to LRF.

Of course, it costs the Swedish state 500 million, but it means that you put in one krona and get two kronor back.

TT: Swedish farmers are still getting 4.5 billion kronor in EU funding over these three years – isn't that enough?

The costs have increased due to the weak krona. And when the state does not compensate for it, it puts Swedish farmers in a worse competitive position compared to farmers in other countries.

This leads to us reducing production in Sweden and importing more.

"Following the issue"

LRF believes that there are several areas where EU funding has significance. Among others, in animal welfare, environmental measures, and investments.

Agriculture Minister Peter Kullgren (KD) writes in a comment to TT:

"I am aware of the issue and have understanding for LRF's perspective. We are clearly following the issue closely and will get back to it."

Finance Minister Elisabeth Svantesson (M), who is also responsible for this, has declined to comment.

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By TTThis article has been altered and translated by Sweden Herald

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