Estonian grain growers enjoy strongest harvest in years

Estonia’s grain growers have had one of their strongest harvests in recent years, but a good crop does not guarantee strong financial results, ERR reports. Grain prices remain uncertain.

Statistics Estonia says the country’s total grain harvest reached nearly 1.55 million tonnes this year, while wheat yields were the highest in 14 years. Ants-Hannes Viira, head of agricultural policy at the Estonian Chamber of Agriculture and Commerce, said the combined harvest of grain, legumes, rapeseed and turnip rape ranked third highest in Estonia’s history.

Weather conditions helped the crop, Viira said. There was little rain until May, followed by above-average precipitation. Grain prices are also better than last year. A food security review by the Ministry of Regional Affairs and Agriculture said excessive rainfall had damaged grain quality last year, while low prices weighed on producers’ profits.

The outlook for next year remains uncertain, Viira said. Fertiliser prices are high, and grain prices will depend in part on whether Ukrainian and Russian harvests can reach the global market. Restrictions on converting permanent grassland into cropland have also limited the scope to expand grain production. Around 400,000 to 500,000 hectares are currently used for field crops, Viira said.

Estonian grain is exported to the Middle East and North Africa. Peas are shipped to Spain and Norway for animal and fish feed.

Years of difficult conditions have also affected investment. According to Eesti Pank statistics, the agricultural sector’s leasing portfolio has declined from about 370 million euros in September 2023 to around 305 million euros currently. Marjan Savtšenko, head of business banking at Luminor, said farmers should avoid overly optimistic budgets based on one good year and build financial reserves. Purchases of new machinery have already fallen, she said.