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Mihelić: Agriculture Must Change, We Seek Capital for a New Production Model

Željko Mihelić, President of the Croatian Chamber of Agriculture, has called in an open letter for the establishment of a strong domestic fund to adapt to climate change and boost competitiveness.

Foto: Wikipedia (Poljoprivreda)
Summary
  • HPK President Željko Mihelić called for the establishment of a fund for the restructuring of agriculture.
  • The fund would help adapt to climate change and boost competitiveness, not sustain the old model.
  • Mihelić warns that drought is no longer a matter of one bad year but a matter of survival.
  • He also proposes bringing livestock back to pastures to reduce the amount of combustible material.

The President of the Croatian Chamber of Agriculture (HPK), Željko Mihelić, published an open letter on Monday, August 17, 2026, addressed to farmers, the public, and the Government, calling for the establishment of a strong domestic fund for the restructuring of agriculture. The letter was released amid a catastrophic drought that is again affecting production this year, along with major disruptions in the agricultural products market across nearly all sectors.

Mihelić emphasized that farmers are once again bearing the consequences of the drought alone, but also stressed that the production model must change. "We must be ready to change production. To change technology. To change the production structure where necessary. To connect. To process. To store. To irrigate where it is economically justified. To produce what the market can pay for. And to take on our share of responsibility," Mihelić wrote, noting that this entire transformation comes at a cost.

The Fund Would Not Sustain the Old Production Model

According to him, the new fund would not serve to maintain the old production model but would help create a new one. In doing so, farmers would need to invest their own capital and take on part of the risk, the state would create the conditions, and the financial system would enable the investments to be realized.

"We are not asking for money because times are hard, but for capital because we must change. We do not want an agriculture that waits for aid every year. We want an agriculture strong enough to create value on its own, resilient enough to withstand changed conditions, and competitive enough to have a future in Croatia and Europe," Mihelić stressed in a lengthy open letter.

Drought Is No Longer a Matter of One Bad Year

The HPK President warned that drought is no longer a matter of a single bad year but a shift in production conditions due to climate change. "If production conditions are changing, then the way we produce must change too. This is not a matter of ideology. It is a matter of survival," he said.

Speaking about irrigation, Mihelić wrote that "we must know how to bring water where it is needed and use it where it can create economic value." He added that production must generate enough value for farmers to make a living from it, and that the focus should be on producing more value, not just more tons.

Bringing Livestock Back to Pastures

Mihelić also addressed pastures that, due to the decline in livestock numbers, have lost their productive function and become overgrown, increasing the amount of dry vegetation-i.e., combustible material. While he does not claim that overgrown areas are the cause of every fire, he believes it would be irresponsible to ignore what the landscape looks like when it has not been used for years.

"That is why, where natural and economic conditions allow, we must bring livestock back to pastures," Mihelić said, citing data on declining vegetable and cow's milk production, and questioning whether Croatia wants to produce food for its citizens or become increasingly dependent on imports.

FAQ
Who called for the establishment of a fund for the restructuring of agriculture? +
Željko Mihelić, President of the Croatian Chamber of Agriculture (HPK), in an open letter published on August 17, 2026.
Why is the establishment of the fund being sought? +
Due to the catastrophic drought affecting production, market disruptions, and the need to adapt to climate change and increase the competitiveness of Croatian agriculture.
What would the fund finance? +
The fund would not sustain the old production model but would help create a new one, including changes in technology, production structure, irrigation, and processing.
What roles would farmers, the state, and the financial system play? +
Farmers would invest their own capital and take on part of the risk, the state would create the conditions, and the financial system would enable the realization of investments.

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