Moldovan cabinet approves regulation on compensation of losses in agriculture

Chisinau, 31 July /MOLDPRES/ - The cabinet members today approved a regulation on establishing the way compensations are provided for diminishing the consequences of the natural calamities in the 2020 year harvest.   

Under the cabinet decision, the Agriculture, Regional Development and Environment Ministry, through the Agency of Intervention and Payments for Agriculture (AIPA), will distribute 100 million lei to the National Fund for Development of Agriculture and Rural Environment, for providing compensations, in order to diminish the consequences of natural calamities on the 2020 year harvest.   

Despite the significant pandemic and economic crisis, to partially cover the damages inflicted by the natural calamities, the government will allocate about 300 million lei to farmers. As much as 100 million lei of this sum will be earmarked from the Agriculture Subsidization Fund and 200 million lei – from the government’s Intervention Fund. The cabinet will cover 1,080 lei for one re-sowed hectare, after it was sowed in last autumn. The compensation is 1,000 lei for one hectare sowed with wheat, hit at a level of more than 60 per cent; 1,020 lei - for barley and 1,400 lei - for rape. Also, the damages caused by hail will be partially covered too.   

The regulation establishes the way financial means are provided, meant for  partially compensating the expenses borne at the sowing and maintaining of first-group cereals hit by the drought and maintaining horticultural crops affected by hail. The compensations will be provided to farmers, whose crops were compromised at a level of more than 60 per cent, through AIPA.  

In 2020, almost 200,000 hectares out of those 415,000 were hit by drought and other natural calamities at a level of over 60 per cent.