Moldovan state transfers 1.9 billion lei in subsidies to accounts of 8,233 agricultural economic entities

Chisinau, 28 December /MOLDPRES/ - The subsidization fund planned for the 2023 year has been fully used. The Agency of Intervention and Payments for Agriculture (AIPA) managed to distribute 1.9 billion lei (95 million euros) to accounts of 8,233 single economic units in the agriculture sector.  

In 2013, the Agriculture and Food Industry Ministry (MAIA) worked out a new policy of subsidization, in order to encourage the small- and medium-sized farmers, with emphasis put on the diversification of the subsidization forms; allocation of increased subsidies to young farmers, farmers women, groups of producers, cooperatives of entrepreneurs and dairy farms; allocation of direct payments per one kg of product. For the first time this year, applications on the subsidization with 3 lei per one kg of invoiced cow milk were received.     

According to MAIA, the subsidies were provided according to nine stimulation mechanisms, as follows: 1,135.3 million lei – commitments taken to the farmers who developed investment projects in 2022; 140.8 million lei for applications on the providing of the subsidy in advance, which contributes to the improvement of the living standards and labour conditions in the rural environment; 14.6 million lei for applications on the providing of subsidy in advance for the development of start-up projects; 67.6 million lei for applications on the implementation of projects through LEADER approach; 139.5 million lei for applications on demanding the additional subsidy for the excise duty on diesel purchased; 52.9 million lei for applications on demanding the additional subsidy; 129.5 million lei – providing of direct payments in the animal husbandry sector (86.4 million lei – direct payments per one kg of cow milk and 43.1 million lei – direct payment per one head of animal); 200 million lei – financial assistance provided to farmers hit by the crises of the 2022 year; 19.7 million lei – state’s contribution to the national fund of vine and wine.   

In the 2023 year, AIPA administered 1,900 million lei, of which 1,700 million lei represented the National Fund of Development of Agriculture and Rural Environment and 200 million lei – the government’s reserve fund for the farmers hit by the crises from the 2022 year.