Moldovan cabinet to increase ceiling of annual subsidy provided to farmers by two million lei per one beneficiary

Chisinau, 24 April /MOLDPRES/ - Farmers will be able to get, in one year of subsidization, financial support on behalf of the state worth up to five million lei per one beneficiary – by two million more against the earlier stipulations, according to amendments made by the government to its own decision from 2017 on the way the means of the National Fund for Development of Agriculture and Rural Environment are distributed.    

Under the decision taken two years ago, the ceiling of the financial support, cumulative on all subsidization measures, “cannot exceed the sum of three million lei per one beneficiary and for groups of producers – 4.5 million lei.”

The cabinet of ministers also changed the financial support for the groups of producers, the value of which is increased by 50 per cent from the value of the authorized subsidy. Also, young producers and women farmers will be able to benefit from more financial assistance. The draft sees also a better financial assistance for the animal husbandry sector.

The document also sees the conditions in which farmers can benefit from increased subsidies by 2,500 lei per one hectare, if they create vine and fruit trees plantations. To stimulate the mechanism of insuring risks in agriculture, decision-makers diversified the ceiling which, according to the decision from 2017 was limited to 400,000 lei. The new quantum of the subsidy, in the case of insurance, was set depending on the crop and areas and can reach up to 1.5 million lei.

The investments in the primary processing, refrigeration, freezing and preservation of meat, processing, packing and preservation of milk, as well as the analysis of the honey will be able to benefit from subsidy worth up to five million lei, against two million lei so far. According to the amendments made, “the size of the subsidy is calculated in form of compensation of 50 per cent, but no more than five million lei per one beneficiary from the value of equipments, technologies set and the building materials for the investments made on the purpose of primary/finished processing, packing, processing and preservation of milk, meat and honey, including of the equipment meant for the analysis of these products.”