Moldovan PM says government to continue to support farmers

The impact of the early April frosts on orchard and vineyard plantations and the support actions for farmers today were analyzed at a meeting held at the government, with the participation of Prime Minister Dorin Recean, Minister of Agriculture and Food Industry Ludmila Catlabuga and representatives of the country's largest agricultural associations. The PM highlighted the need for the most efficient enforcement of the damage assessment mechanism and emphasized that the government would continue providing farmers with support.

"Along with Minister of Agriculture Ludmila Catlabuga, I had a discussion with farmers and professional associations about the April frosts, how orchard and vineyard plantations that were in full bloom were affected and what the government is doing to support the agricultural sector" said Dorin Recean.

According to the official, the worst hit plantations are the ones of apricots, cherries and peaches. The Ministry of Agriculture immediately activated the damage assessment mechanism and is collecting reports to establish the losses. Damage estimation will last 30 days.

"Unfortunately, we face challenges in the agricultural sector - April frosts, a dry and very hot summer, African swine fever, increasing instability of weather conditions, more extreme atmospheric phenomena," said the prime minister.

Dorin Recean emphasized that the government continued to support high-value local production and subsidize the agricultural sector. He noted that six billion lei had been allocated in recent years to support farmers, representing the largest financial support ever provided, which brought concrete results. Specifically, the irrigation area was expanded by over 1,000 hectares, wine exports increased by about 20 per cent, the cattle population - by 10 per cent, milk production - by 17 per cent and Moldovan wines won over 7,500 international medals, positioning the country as the most awarded in Eastern Europe in the last ten years.

At the same time, the state subsidizes agricultural insurance policies – up to 70 per cent of the insurance cost is covered by the state budget. In 2024, 502 insurance applications were submitted and the state paid over 61 million lei from the state budget to cover these costs.

Meanwhile, with government financial help, farmers have expanded anti-rain and anti-hail equipment to 961 hectares of protected areas for perennial plantations. Also with government’s support, 402 farms have been renovated and modernized in the last three years, Dorin Recean noted.

"The government has already disbursed over 1 billion lei to farmers in the first months of 2025, out of a total of 1.7 billion allocated for this year. Through the +Plus Budget, the Agency of Intervention and Payments for Agriculture’s (AIPA) fund was supplemented with 200 million lei, and gradually, the value added tax (VAT) will be refunded. We provide advantageous credit instruments - small and medium-sized farmers have access to loans with a preferential rate of 5.1 per cent, a grant component of up to 30 per cent of the financing value, flexible repayment terms of up to five years and the possibility of accessing financial guarantees," the prime minister also said.

Dorin Recean also informed farmers that the Economic Growth Plan, financed by the European Union, provided for an allocation of 300 million euros for investment in agriculture, confirming the priority the state gives to the agricultural sector, peasant farms and farmers from all over the country.