Moldovan farmers have several financing options this year

The government, through the Ministry of Agriculture and Food Industry (MAIA), in cooperation with the Consolidated Program Implementation Unit (CPIU IFAD) is conducting Talent Retention for Rural Transformation Project (TRTP), offering grants and financial packages for modernizing and developing agribusinesses in the Republic of Moldova.

Thus, for young and women farmers, IFAD provides a financing line to support the launch and development of agricultural businesses.


"This involves financing up to one million lei, of which up to 320,000 lei are non-reimbursable grants; a minimum contribution of 10% (cash or material goods); free technical assistance: business plan development, mentoring sessions, e-learning; eligible activities: production, storage, processing, agritourism, etc.", explains MAIA.


For investments in irrigation systems, farmers can benefit from funding for the modernization of irrigation infrastructure: grants up to 500,000 dollars for small-scale irrigation systems, pumping stations, lake rehabilitation; a 10% personal contribution; VAT exemption (20%); free technical assistance; application group: at least five agricultural producers.

Respectively, for investments in access roads to agricultural lands, grants up to 225,000 euros are offered for the construction of agricultural roads (maximum 3 km); IFAD contribution is 75%, and the difference is the contribution of small farmers; beneficiaries: water users associations in partnership with local public authorities and farmer groups.


"Financing is also provided for investments in the development of processing units. With a financial package of up to 250,000 euros for purchasing equipment (92% loan, 8% grant), beneficiaries can be cooperatives and limited companies with a minimum of 5 founders. Eligible activities: sorting, packaging, renewable energy, rainwater harvesting," indicates MAIA.


For investments in irrigation equipment and climate change adaptation, grants up to 7,500 dollars are offered for pumps, drip tapes, sprinklers, fertigation equipment.


"With a minimum contribution of 30%, they are intended for farmers with up to 50 hectares, including women and young people. Moreover, for investments in modernizing micro and small enterprises, loans up to 150,000 euros are offered, repayable over 8 years, with a grace period of 4 years, a 6.34% interest rate, and the possibility to access up to 100,000 euros for working capital," the source said.


Other forms of support consist of loans up to one million lei for micro-enterprises; mentoring, e-learning activities, and networking for farmers.

TRTP project was launched in 2021 with an implementation duration of six years. The total cost of the project is 46 million euros.