Higher fuel and fertiliser prices have increased operating costs for European farmers in 2026. To reduce the financial pressure on agricultural businesses, the European Union and national governments have introduced emergency funding, tax reductions and direct compensation schemes.

For LANDE investors, these measures are relevant because they can help farmers maintain liquidity, cover seasonal expenses and meet their financial obligations.

Here is an overview of the support available in LANDE's four operating markets: Latvia, Lithuania, Poland and Romania.

EU level: three layers of support

Brussels has responded with three tools that work together: emergency cash, permission for governments to spend more, and faster access to existing CAP money.

1. €540 million emergency package. On 17 July 2026, Member States endorsed €540 million from the EU agricultural reserve for farmers hit by higher fertiliser and energy costs. Governments may top this up with national funds of up to 200%, and must pay it out by 28 February 2027, ahead of the 2027 spring input season (European Commission).

2. A temporary State aid framework (METSAF). Adopted on 29 April 2026 and valid until 31 December 2026, it lets governments cover up to 70% of farmers' verified extra fuel and fertiliser costs, or pay simplified aid of up to €50,000 per beneficiary for extra fuel costs (European Commission, DG Competition). METSAF is not money in itself. It is the legal green light for national schemes.

3. CAP flexibility. The Commission proposed higher CAP advance payments before 16 October, a new per-hectare liquidity scheme co-financed by the EU, and the option to adjust 2027 direct payment allocations to reflect high fertiliser prices (European Commission, 12 June 2026).

Source: European Commission. Allocations are funds made available to governments, not amounts already paid to farmers.

Latvia: tax relief now, bigger direct payments in 2027

Latvia's main lever is cheaper fuel, followed by a larger CAP envelope next year.

• Agricultural diesel: excise on marked (farm) diesel is cut to €21 per 1,000 litres. On 18 June the Saeima extended the reduced rates to 31 December 2026 (LV Portals).
• Regular diesel: excise fell from €396 to €330 per 1,000 litres for 1 October–31 December 2026, roughly 8 cents per litre at the pump including VAT (fuel-prices.eu).
• EU emergency funds: €5.5 million from the €540 million package, to be paid by 28 February 2027.
• 2027 direct payments: on 28 August, Latvia asked the Commission to raise 2027 direct payments by €35.25 million to €398 million, mainly through eco-schemes and a higher basic payment of about €5/ha. This still awaits Commission approval (LV Portals).

What it means for investors: relief is immediate on fuel and grows in 2027 through CAP payments. The Ministry of Agriculture puts fertiliser prices at about 68% above pre-crisis levels, so farm cash flow stays under pressure through spring. This is one reason LANDE schedules repayments around harvest income.

Lithuania: compensation already reaching farmers

Lithuania doubled its EU allocation and began paying it automatically at the end of October, the fastest delivery of the four markets.

• €19.6 million compensation: €9.788 million from the EU reserve matched by €9.788 million from the national budget. Payments started on 29 October 2026, with no application needed. Eligible farms must have declared 2026 land and crops and be on the farm register; dairy support also requires cows registered on 1 September (Ministry of Agriculture via Švyturys).
• Size of payments: the Minister of Agriculture estimated up to €4,500 per farm, with priority for dairy, small and mid-sized farms (LRT).
• Fuel tax: in April the Seimas cut the fixed excise on marked farm diesel from €60 to €10 per 1,000 litres until 15 June 2026 (LRT).

What it means for investors: cash is landing in farm accounts now, ahead of winter and spring input purchases. Individual amounts are modest, so they ease cash flow rather than transform it.

Romania: diesel refunds plus targeted livestock aid

Romania combines a well-established farm diesel refund with two EU-approved livestock schemes.

• Farm diesel refund: farmers recover RON 2.697 per litre, the difference between standard and agricultural excise. In July the government raised the 2026 budget from RON 620 million to RON 714.3 million, paid through APIA (Newsweek România).
• Cattle farmers: on 14 September the Commission approved a €52 million (RON 277 million) scheme under METSAF, up to €50,000 per company, running to 31 December 2026 (Brussels Times).
• Pig farmers: on 24 September the Commission approved an €11 million scheme, also capped at €50,000 per company and covering extra costs since 1 March 2026 (Brussels Times).
• EU emergency funds: €29.98 million from the €540 million package.

What it means for investors: the diesel refund supports every eligible farm, while the direct grants favour livestock. Arable producers rely mainly on the refund and the EU emergency allocation.

Poland: the broadest toolkit

Poland has the largest EU allocation and the widest mix of measures: fuel refunds, a nationwide fuel tax cut and direct input subsidies.

• Farm diesel excise refund: PLN 1.48 per litre in 2026, claimed in two rounds (February and August) (Infor; Infor). In August the Agriculture Minister floated raising it to PLN 2 per litre; no draft law has been published yet.
• Fertiliser and diesel subsidies: farmers applied from 1 to 23 October for purchases made 1 March–31 August 2026. Fertiliser aid is based on the price paid above the official average, capped at PLN 500/ha on up to 300 ha; diesel aid is PLN 0.52 per litre (samorzad.gov.pl, citing ARiMR). Payments may be scaled down if applications exceed the budget.
• "Ceny Paliwa Niżej" fuel package: from 3 October to 31 December 2026, VAT on fuel drops from 23% to 8% and diesel excise from PLN 1,160 to PLN 880 per 1,000 litres (Polsat News).
• EU emergency funds: €66.63 million from the €540 million package.

What it means for investors: Polish farmers have several overlapping sources of relief, and the October subsidy payouts should arrive before spring purchasing.

What this means for LANDE investors

Public support gives borrowers an extra financial buffer, but LANDE's credit decisions never depend on it.

How the support helps borrowers

1. Lower running costs. Reduced fuel taxes and agricultural diesel refunds help farmers limit increases in production expenses. This can support farm profitability and preserve working capital.
2. Extra liquidity. Emergency grants and compensation programmes can provide farmers with additional funds to cover seasonal expenses, reducing pressure on cash flow.
3. Long-term commitment. The EU and national governments continue to prioritise agricultural production and food security. The availability of both emergency measures and established CAP payments provides an additional layer of financial support for the sector.

How LANDE manages the risk

• Before financing a project, LANDE assesses each borrower's repayment capacity, financial position and collateral.
• Repayment schedules follow the farming calendar, because farm income is concentrated around harvest.
• Throughout the loan term, LANDE monitors borrower performance and engages early if difficulties arise. Where appropriate, additional collateral or revised repayment terms may be agreed after a new risk assessment.

These measures do not remove agricultural or credit risk. Their effect depends on each farm's eligibility, payment timing and finances.

Dates to watch

The bottom line: farmers in all four LANDE markets now have several layers of support easing cost pressure into the 2027 season. Combined with LANDE's borrower assessment, collateral and ongoing monitoring, this gives investors added comfort, while individual loan performance still rests on each farm's results.

Sources

Information as of 4 November 2026. National schemes can change; this article is for information only and is not investment advice.

EU

• European Commission: €540 million allocated to farmers (17 July 2026)
• European Commission: Middle East Crisis Temporary State Aid Framework (METSAF)
• European Commission: €540 million proposal and CAP flexibility (12 June 2026)

Latvia

• LV Portals: Saeima extends diesel excise cut to year-end
• fuel-prices.eu: Latvia diesel excise cut from 1 October 2026
• LV Portals: 2027 direct payments up €35 million

Lithuania

• Ministry of Agriculture release via Švyturys: €19.6 million payments begin
• LRT: up to €4,500 per farm
• LRT: Seimas cuts diesel excise

Romania

• Newsweek România: farm diesel budget increased
• Brussels Times: €52 million for cattle farmers
• Brussels Times: €11 million for pig farmers

Poland

• Infor: 2026 farm diesel excise refund
• Infor: refund could rise to PLN 2 per litre
• samorzad.gov.pl: fertiliser and diesel subsidies
• Polsat News: VAT and excise cut on fuel from 3 October