Croatia proposes higher sugar beet subsidies for 2026 and 2027
Croatia’s Agriculture Ministry has proposed raising annual support for sugar beet growers from €1.3 million to €2 million in 2026 and 2027. Payments would reach €720 per hectare for farms growing beet on up to 40 hectares, as the government seeks to protect domestic production.
Annual funding to rise to €2 million
Croatia’s Ministry of Agriculture, Forestry and Fisheries has proposed increasing support for sugar beet producers in 2026 and 2027. The measure is intended to preserve domestic cultivation as growers face pressure from changing climate conditions and unfavorable market trends, according to Poslovni.hr.
Annual funding under the revised program would rise from €1.3 million to €2 million. The program’s total budget for the 2023-2027 period would consequently increase from €6.5 million to €7.9 million. The difference between the annual increase and the five-year total reflects the application of the higher rates during the final two years of the program.
Small growers receive the highest rate
The proposal uses a tiered payment structure that directs the largest per-hectare subsidy to smaller producers. Farms cultivating sugar beet on up to 40 hectares would receive €720 per hectare, up from €530. Producers with between 40 and 100 hectares would receive €620 per hectare, while those cultivating 100 hectares or more would qualify for €120 per hectare.
State Secretary Tugomir Majdak said the smallest producers were the most vulnerable and therefore required additional protection. The higher payment for the first size category represents an increase of €190 per hectare. For a grower cultivating the full 40 hectares within that category, the stated rate would correspond to €28,800, subject to the program’s final terms and eligibility rules.
Acreage has risen despite a weak market
About 7,500 hectares were planted with sugar beet in Croatia this year, Majdak said, 5% more than a year earlier. He described the increase as a positive result because sugar beet production has been declining both in Europe and globally, while market conditions remain unfavorable.
The acreage data suggest that Croatian cultivation has shown short-term resilience, but the ministry’s proposal also indicates concern about whether growers will remain in the sector. Sugar beet requires producers to commit land and operating resources before harvest, making expected returns and policy support relevant to planting decisions.
Proposal enters public consultation
Deputy Prime Minister and Agriculture Minister David Vlajčić presented the amendments on Wednesday and submitted them for public consultation. He said the government wanted as many sugar beet producers as possible to continue farming and viewed the increased payments as a means of supporting that objective.
The proposal does not provide a production-volume target or quantify its expected effect on Croatia’s sugar supply. Its immediate focus is acreage retention, particularly among smaller farms. Whether the additional €700,000 in annual funding can stabilize cultivation will depend on producer costs, yields, market returns and the final conditions adopted after consultation.
