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Moldovan government increases farmers' access to state budget subsidies

09:56 | 04.04.2022 Category: Official

Chisinau, April 4 / MOLDPRES /- At today's meeting, the Cabinet approved changes to the subsidy principles, including a set of facilities for farmers. The new provisions aim to improve access to subsidies for young farmers, women farmers and returning migrants who want to grow their livestock business, process agricultural production, grow fruit and vegetables on protected land and set up multi-annual plantations, the government's  communication and protocol department has reported.

Thus, the financial resources available this year in the Subsidy Fund for Agriculture and Rural Environment, amount to 1.75 billion lei, compared to 1.1 billion lei in 2021. The financial means will be distributed by categories of producers - micro, small, medium and large.

At the same time, in order to encourage the association of agricultural producers, it was approved to increase from 50 to 75% the subsidy for investments made by producer groups and entrepreneurial cooperatives in the development of post-harvest and processing infrastructure. The ceiling of the subsidies accessed by them will increase from 5 million to 7 million lei for a year of subsidy.

Regarding the livestock sector, investments in milk production will be encouraged. In this way, for the first time, increased subsidies will be granted to the livestock sector. Animal breeders (cattle, sheep and goats) can benefit from subsidies increased from 50 to 70% of the value of the investment. Wine producers will also benefit from increased subsidies for the installation of support systems and for the establishment of plantations with wine grape varieties.

Energy efficiency practices are to be subsidized, by compensating 50% of the cost of quality legume seeds of local production, but not more than 2000 lei per hectare. In the context of replacing energy dependence and adapting to climate change, the ceiling has been increased from 800 thousand lei to 1.5 million lei per beneficiary for machinery, equipment and installations for renewable energy production (solar and photovoltaic panels, wind installations, biogas ).

In order to promote and develop organic farming in the Republic of Moldova, a new intervention is proposed for the practical implementation of the use of nitrogen-fixing crops and "green manures" to maintain and intensify soil fertility. Grants will also benefit education and research and innovation institutions in the agricultural field, as well as associations of water users for irrigation.

Another facilitation is the creation of favorable conditions for lending to agricultural producers by commercial banks and non-bank lending organizations.

The competitiveness of domestic producers in the market will also be increased, as, for the first time, it is possible to subsidize the establishment of multi-annual plantations with varieties listed in EU catalogs.

The approved document also provides for other adjustments of financial incentives for the cultivation of aromatic, medicinal and spicy plants, which will facilitate the development of related industries: food, pharmaceutical, perfumery and cosmetics, etc.

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