Danish farmers will now breathe a sigh of relief following the government’s decision to provide financial assistance to the farmers and overhaul the fertilizer legislation.

Danish famers have for the past years been struggling with debt. Recently, Danish Business and Growth Minister, Henrik Sass Larsen admitted that most farmers in Denmark are facing bankruptcy due to the high levels of debts which is estimated at more than DKK350 bln.

In addition, the Russian Ban on EU food and Drink imports has added the strain on Danish famers who have since been recording losses, according to the Danish Agriculture and Food Council. The council reported that last year alone the pork sector has faced losses amounting to DKK4 billion (USD603 million).

Meanwhile, the Liberal government with other leading parties including the Conservatives, Dansk Folkeparti and the Liberal Alliance has agreed to revise the current legislation and introduce start-up loans for farmers. In addition, the government has set up the Dansk Land brugskapital fund with the help of private investors and lenders, to give farmers a better capital base if they want to expand or modernize their business.

The new government has also plans to overhaul the country’s fertilizer laws, as one way of helping players in the agriculture sector. The country’s fertilizer laws have been blamed for the decline in Danish wheat quality over the past 25 years. Lars Hvidfeldt, deputy head of industry association Landbrug & Fødevarer (L&F), said: “For year now, L&F has worked hard to get rid of the fertilizer limits, which have been a costly environmental instrument that has had much less of an effect on the environment than previously anticipated. The costs for the agriculture sector have been far greater than expected and completely out of proportion compared to the small environmental effect that society has gained due to the fertiliser limits.”