Moldovan government approved new forms of subsidizing farmers

Chisinau, July 12. /MOLDPRES/- Moldovan farmers and associations of water users for irrigation will have the opportunity to make greater investments in the modernization of the agricultural sector, the diversification of production, the development of the processing infrastructure and the increase in the competitiveness and quality of the products obtained. The cabinet approved a new regulation for two other forms of subsidization: post-investment and subsidizing investments in stages, the government's communication and protocol department has reported.

The document will help improve the performance of agricultural businesses and align food quality and safety requirements with EU standards.

"Through the implementation of the regulation, the state will annually contribute to the support of at least 7,000 farmers - beneficiaries of subsidies - for which about 50% of the means of the National Fund for the Development of Agriculture and the Rural Environment will be allocated. Annually, it will be possible to attract investments in the agro-industrial sector of over 5 billion lei, which will contribute to the creation of about 2000 new jobs, including seasonal ones", said Deputy Prime Minister Vladimir Bolea.

According to the regulation, the post-investment subsidy takes place after the investment is made, based on the costs fully borne by the farmer. Subsidizing investments in stages will be carried out on the basis of the investment project, evaluated by the Agency for Intervention and Payments for Agriculture and authorized for the payment of the subsidy after the implementation of each stage, based on the costs incurred in full. The period of full implementation of the investment project in stages is up to 36 months (three consecutive years).

The annual ceiling for an applicant under the form of post-investment subsidy is a maximum of 7 million lei. The exception is farmers in the livestock sector, who will be able to access up to 10 million lei. At the same time, the state will offer up to 12 million lei to milk processing units, whose founders are also milk producers, and up to 12.5 million lei for milk producers. For groups of agricultural producers, cooperatives of entrepreneurs or associations of water users for irrigation, the subsidies will not exceed the value of 15 million lei.

In order to motivate young farmers, female farmers and returned migrants, it is proposed that the subsidies calculated under general conditions be increased by 10% of the authorized subsidy value. For investments made in machinery or equipment manufactured in the Republic of Moldova, the project provides for a 20% increase in the subsidy.

Photo: Government