Agricultural policy and the future of Tartu Agro
Session: 15th Riigikogu, 4th sitting, information briefing
Date: 2024-10-09 15:15
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 9m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first topic addressed agricultural policy and the future of Tartu Agro. The discussion centered on the expiration of a long-term lease agreement signed in 2000, which ends in November of next year. Tartu Agro is a large employer with a diverse range of activities; work is divided among approximately 110 people and it has livestock and a seed center, making the company's sustainability important both economically and from the perspective of regional food security. The government has previously decided on the use of real estate through a market-based auction with a 12-year lease period, and starting prices are determined based on the Land Board's market analysis. As a key principle, it was emphasized that the use of state property must take place under fair competitive conditions, and agricultural land is allocated through auction; Tartu Agro has a preferential right to the next lease period regarding state property. At the same time, discussions are underway regarding whether the land should be given over all at once or in pieces, and how this affects the company's sustainability, taking into account the views of the climate and regional ministries. The second part focused on the continued need to consider ensuring sustainable agricultural activities and to weigh various solutions that the government will consider in its decision-making.
The second topic concerned the rise in prices of local food products and the decline in the standard of living, and the associated food security. This issue highlighted that food security is critical and that the government is trying to respond using both economic stimulus and regional policy measures. The Prime Minister stated that food security is a priority and that the discussion will continue to coordinate measures with other ministers, including in relation to question 11, which is being resolved with colleague Svetk. In conclusion, there was an emphasis on the need to ensure the sustainability and safety of local production, while ongoing dialogue and clarification are required to reach decisions.
Decisions Made 1
No decisions were made at this session. The discussion will continue, and the government is considering various solutions (renting as a whole versus dividing into pieces) and assessing the emerging risks, preferences, and legal limitations.
Most Active Speaker
Most active speaker: Lauri Laats (Member of Parliament). Political position: other.
Esimees Lauri Hussar
AI Summary
The Speaker of the Riigikogu, Lauri Hussar, announces that the second question will be presented by Lauri Laats, and the topic is agricultural policy and the future of Tartu Agro—we are continuing on the theme of agriculture.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Speaking before the Riigikogu, Lauri Laats raised the issue of the expiry of Tartu Agro's 25-year lease agreement. He expressed concern about the company's sustainability, the preservation of jobs, and the survival of its herd of several thousand animals, asking whether the state has found or will find a positive solution for the company to continue operating.
Peaminister Kristen Michal
AI Summary
The government decided on August 8th to lease the immovable property located in the city of Tartu for 12 years via public auction, ensuring free competition and equal opportunities regarding state assets, market-price rent, and the continuation of agricultural use, where the land must not be used for the construction of apartments. AS Tartu Agro has the preferential right for the next lease period at the same starting price; otherwise, it would constitute state aid.
Esimees Lauri Hussar
AI Summary
The Chairman thanks him and joins the Prime Minister in complimenting Lauri Laats, noting that a precise question yields a precise answer, and asks Lauri Laats to pose a clarifying question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that although the August decision permits a 12-year lease or auction, the 3,000 hectares of land managed by Tartu Agro should not be parceled out for auction piece by piece. This is because the buildings and infrastructure function together with the land, and a piecemeal sale would create a risk of speculation and fail to establish a sustainable future for the company.
Peaminister Kristen Michal
AI Summary
The government is considering dividing the land intended for lease either into one single piece or four separate pieces so that agricultural activity can continue. Furthermore, depending on the minister currently responsible, both options—as separate pieces and as a whole—are being evaluated, and the principle is being discussed that size and scale may provide an advantage in the name of economic efficiency.
Esimees Lauri Hussar
AI Summary
The Chairman thanked [the previous speaker] and invited Aleksandr Tšaplõgin to ask a supplementary question next.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Chaplygin noted that the rise in prices and the decline in living standards have resulted in a gradual drop in the sale and production of local foodstuffs. He views this as a security risk and asked whether the government intends to take any action.
Peaminister Kristen Michal
AI Summary
The government is dealing with various matters, including economic revitalization and regional policy, but food security is extremely important. Decisions have been made to ensure food security, based on considerations related to agriculture and climate requirements, and the questions will now be reviewed briefly so that our colleague Svetki can respond.
Esimees Lauri Hussar
AI Summary
He/She thanks everyone, says that we are moving on, and concludes the discussion of today's second question.