Legal framework for agricultural subsidies modernized: record growth of National Fund and expanded support for farmers

Acting Minister of Agriculture and Food Industry (MAIA) Ludmila Catlabuga presented today the report on developments and results in the agricultural subsidies for 2021-2025, highlighting essential reforms made to adapt the system to the current needs of farmers and European standards.

According to the report, the legal framework for subsidies has been significantly improved, with diversified forms of support and expanded categories of beneficiaries.


“The new policies allowed the transition from a model based solely on post-investment subsidies to a complex system of direct payments and advance subsidies, targeting the development of the livestock sector; supporting local public authorities and micro and small farmers; supporting research and innovation institutions in the agro-industrial field,” explained Catlabuga.


At the same time, allocations for young farmers, women farmers, producer groups, and entrepreneurial cooperatives were increased, encouraging diversity and economic inclusion in rural areas.


“Subsidies are no longer just financial support but a tool for sustainable development and strengthening the competitiveness of national agriculture,” stated the acting minister.


According to the official, in the last four years, the National Agricultural and Rural Environment Development Fund has recorded a 70% increase, reaching a record level of 1.9 billion lei in 2025 — the highest value in its history. In total, over 8 billion lei in subsidies were directed to agriculture during the 2021-2025 period.


“Over 8,200 unique farmers, including about 2,900 women and young people, have benefited from this support. At the same time, micro-farmers now represent 61% of the fund beneficiaries, which confirms the accessibility and equity of the updated subsidy mechanism. The investments made have generated over 3,200 new jobs in rural areas, and tax contributions from agriculture have shown constant growth,” MAIA head revealed.


Additionally, the Minister of Agriculture mentioned that despite multiple challenges in recent years - droughts, price increases, logistical difficulties, the Government has consistently intervened to stabilize the sector, offering advantageous credit products, additional budgetary allocations, and legislative facilities designed to reduce farmers' vulnerability.

A special focus in the report was placed on the LEADER Program, launched in 2022, which introduced for the first time in the Republic of Moldova advance subsidies for local development.

Through this program, 1,782 projects were financed, totaling over 180 million lei, aimed at modernizing social and cultural infrastructure, supporting small enterprises, and improving living conditions in villages.

Currently, 54 Local Action Groups (LAGs) are active throughout the country, covering over 61% of the territory of the Republic of Moldova, from 513 administrative-territorial units, with a population of over 1.14 million citizens.

Ludmila Catlabuga was appointed as Minister of Agriculture and Food Industry in November 2024.