Background information

Due to the current cost of energy, fertiliser and fodder, the viability of many agricultural companies’ operations in Sweden is threatened. To support the companies survival as well as to secure continued domestic food production in Sweden, the government has decided on financial support of SEK 300 million (€29 million) for agricultural companies. The financial support will follow the de minimis regulation under EU state aid rules based on EU Commission Regulation No 1407/2013 on de minimis aid.

Content of measure

The pig and poultry sectors and greenhouse companies have been hit particularly hard by cost increases. The government therefore intends to allocate SEK 300 million (€29 million) in the spring budget for 2022 for temporary financial support targeted at these sectors. For the pig and poultry industry that is hit by the high price of fodder, the aid will be divided based on the number of animals. For the energy intensive greenhouse sector, the aid is based on production area.

A single company can receive a maximum amount of support of 200,000 SEK (€19,200) in accordance with the EU de minimis rules regarding state aid.

The measure is part of a support package valued up to SEK 1 billion (€96 million). The package also includes an increased tax reduction on diesel

Due to war in Ukraine, prices for agricultural inputs continue at a high level. Thus, the government of Sweden has proposed an additional hand-out to the industry in addition to the measure in the spring budget.

Use of measure

In 2020, there were 689 companies engaged in greenhouse farming in Sweden. Agricultural companies with pigs add up to 1,146 companies, 2,451 companies with chicken and 78 with turkey.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Due to the increase production cost for agricultural companies, the employer's organisation the Federation of Swedish Farmers LRF [Lantbrukarnas riksförbund] has been lobbying for a support for the sector since November, 2021.

Views and reactions

The Federation of Swedish Farmers LRF has expressed joy and relief when the coveted financial support package was announced.

Sectors and occupations

This case is not occupation-specific.

Sources

• 21 June 2021: Garden production 2020 (Trädgårds­produktion 2020) (jordbruksverket.se)
• 14 February 2022: Support package for agricultural businesses in the spring budget for 2022 (Stödpaket till lantbruksföretag i vårändringsbudgeten för 2022) (www.socialdemokraterna.se)
• 15 February 2022: This is what the government's support package entails (Det här innebär regeringens stödpaket) (www.lrf.se)
• 20 May 2022: Statistics from teh Swedish Board of Agriculture: animal production (Jordbruksverkets statistikdatabas: jordbruksföretag med djur) (statistik.sjv.se)