Finances

NEW SUBSIDIZING REGULATION WILL RAISE FARMERS' INVESTMENT EFFICIENCY - AGRICULTURE MINISTRY

30 may, 2017

A new Regulations on distributing financial means of the National Fund for Agriculture and Rural Development is designed for five years. It will allow farmers to more efficiently plan their investments, maintains Deputy Minister of Agriculture and Food Industry Vasile Luca.

At the Wednesday's seminar he said that the Regulation elaboration took more time, but the goal was to prepare it well to meet farmers' expectations.

Deputy Minister said that Agency for Interventions and Payments in Agriculture (AIPA) jointly with the Ministry start a campaign or informing farmers about the Regulations' peculiarities.

AIPA Director Nicolae Ciubuc said that the new regulation differs from previous documents. It is designed for five years, which is an innovation and will allow renouncing the need to adopt a new document each year.

"The regulations established the minimum size of the fund - 2%. Of course, farmers will say that the branch needs greater financing, but if revenues to the budget will grow, the fund will also increase", he said.

According to him, farmers who have a plan of farm development, who bought equipment and technique from suppliers on the legal bases, who do not have debts to local or national budgets, may rely on subsidies. Subsidies are available to those, who are members of agricultural associations and can present documents, which confirm the fact of investing.

"We introduced a mechanism of control over the investment implementation, which was not included in previous documents. Also, there are subsidies designed for enterprise promotion, in particular in the media and at exhibitions. A new position was introduced in the regulation - systems for protecting from rainfalls, hail and frosts, while at providing subsidy on investments in tractors or other machinery, the area of tilled fields will be taken into account", Ciubuc said.

The share of subsidy will account for 50% of the investment, for young farmers and women - 65%, for ecological farming - 70%, while for those, who bought equipment from domestic producer - 60%. With all this, the regulation implies that the share of subsidy for infrastructure rehabilitation accounts only for 30%.

The size of the Fund in 2017 is of 900 million lei, 231 million lei of which were provided within the ENPARD Moldova [European Neighborhood Program in Agriculture and Rural Development].

Infotag's dossier: The AIPA is responsible for considering applications for getting subsidies. According to the regulation, the acceptance of applications for subsidizing will end on October 31. The process on providing subsidies starts five years after AIPA approves the application.

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