Agriculture Minister announces preparation for accessing EU pre-accession funds for per-hectare payments

Minister of Agriculture and Food Industry Ludmila Catlabuga today presented during a press statement following the cabinet meeting a package of measures and financial strategies aimed at supporting the agricultural sector in the context of European integration and current climate challenges. The official clarified the funding directions, the simplification of VAT refund procedures, and mechanisms to ensure liquidity for farmers.

The minister emphasized that the institution’s priority is not only the management of current funds, but also intensive preparation for accessing the European Union’s pre-accession funds. In this regard, the ministry is working on accrediting teams and implementing essential information systems, such as the Land Parcel Identification System (LPIS) and other sectoral registers.

“Pre-accession funds that we are striving to obtain can certainly be directed towards direct per-hectare payments. We are in the midst of preparations to participate in the European Commission’s multiannual budgeting exercise, where we will request these resources,” Catlabuga said.

Regarding direct per-hectare payments, the minister noted that mechanisms are being tested on certain crops in order to establish a clear process for on-site monitoring and verification of the 1.4 million eligible hectares, taking into account the human resources required for these inspections.

To address farmers’ concerns about the lack of working capital, the ministry announced several concrete interventions:

Simplification of VAT refunds: In collaboration with the Ministry of Finance and the Tax Service, work is underway to reduce the processing time for applications to 15–20 days. The objective is to refund the 200 million lei allocated to farmers through debureaucratized mechanisms.

FCA Program (Agricultural Credit Fund): An amendment is being prepared to allow the financing of working capital, not just investments, at a competitive interest rate of approximately 5.1%, thus ensuring the cash flow needed for seasonal activities.

Compensations and subsidies: The Government is maintaining the allocation of over 100 million lei to cover excise duties on diesel and other urgent needs, with the amount to be reviewed during the budget revision.

At the same time, Ludmila Catlabuga acknowledged signals regarding rising prices for agri-food products, and a structured analysis is being developed together with the Ministry of Economy.

In the context of bad weather forecasts for the second and third decades of April, when the risk of frost is at its highest for the horticultural sector in the flowering stage, the minister issued a call for caution to farmers.

“We urge producers to use anti-frost prevention tools. Through AIPA, ADMA, and ODA, we have provided subsidy programs specifically for these technologies. It is vital that farmers apply these mechanisms to minimize risks during such a vulnerable period,” the minister concluded.