Government earmarked 300 million lei to ensure country's food security

Chisinau, 19 August /MOLDPRES/- The government has earmarked 100 million lei to provide aid to farmers who have suffered crop losses in 2020, following natural disasters. The financial sources were provided from the Government Intervention Fund. Also, the government increased from 100 million lei to 200 million lei the means allocated from the National Fund for the Development of Agriculture and Rural Environment. Thus, the government will allocate 300 million lei for partial compensation of losses to group I crops, the government's communication and protocol department has reported.

The premier said that the state incurs additional expenses from the budget for other measures to support the producers, including subsidizing interest on loans not only new ones but also those previously committed (100 million lei), refund of VAT accrued in accounts for subsidizing payments related to wages (200 million lei), compensation of the land tax (120 million lei), rescheduling of debts for the delivery of technology (about 200 million lei), etc. To help farmers get the money faster, the government has simplified the Regulation on the way for compensation. As requested by farmers, they will no longer be required to submit cadastral documents, it will be sufficient to present certificates of confirmation of land ownership, issued by the mayor's office where farmers work.

MADRM estimates show that the drought and hail in the last year have affected about 200 thousand hectares of agricultural land. Most crops were compromised by more than 60%, causing a total damage of 1.2 billion lei to farmers in the country. So far, AIPA has received 75 files, and the amount of compensation requested exceeds 7 million 350 thousand lei. Farmers can submit applications by 18 September 2020.

As a response to the drought and to reduce the consequences for the agricultural sector, farmers will have the right to use groundwater for drip irrigation of land occupied by horticultural crops (vines, trees, vegetables). The regulation on the use of groundwater, approved today by the cabinet refers only to lands in areas where there are no necessary / sufficient sources of surface water, but there are reserves of groundwater exploitation.