VIDEO // Financial support for farmers of Moldova: over 400 million lei in payments through AIPA, compensation for diesel fuel used in spring agricultural work

Farmers of Moldova might benefit, in the coming period, from a significant financial support package, which includes both the payment of outstanding subsidies for 2024 and a new mechanism for compensating the costs of diesel fuel used in spring agricultural work. Agriculture and Food Industry Minister Ludmila Catlabuga has made statements to this effect. She noted that the authorities were trying to reduce financial pressure on agricultural producers in the middle of the agricultural campaign.

Over 400 million lei for outstanding subsidies

According to the minister, the Agency for Intervention and Payments in Agriculture (AIPA) continues examining and processing the files submitted by farmers for 2024. The authorities aim to honor, by the end of April, all payment commitments for applications submitted under the post-investment subsidy measure.

At present, approximately 396 applications are under examination, with a total value of over 400 million lei. After the completion of administrative checks, these amounts will be transferred to the beneficiaries.

In parallel, AIPA is also analyzing the files submitted for subsidizing agricultural insurance premiums. Around 170 applications are still under examination and will be authorized for payment, after the verification procedures are completed.

Compensation for diesel fuel used in agricultural work

Besides the existing subsidies, the government is preparing a temporary support mechanism for farmers by partially compensating diesel fuel costs. According to a draft decision drawn up by the Agriculture and Food Industry Ministry (MAIA), farmers could receive compensation of almost 4,000 lei for each ton of diesel fuel used at spring agricultural work.

The financial aid is to be provided for diesel fuel purchased between March 1 and May 31, 2026, in an amount equal to 100 per cent of the excise quota set for 2026, which is approximately 3,979 lei per ton.

To implement the mechanism, the state is set to allocate 108 million lei from the government’s Intervention Fund. The maximum amount that could be granted to a beneficiary is up to 200,000 lei.

The compensation will be calculated based on the quantity of diesel fuel purchased and confirmed by tax invoices, but only within the limits of the average consumption norms established for the agricultural sector. Thus, even if a farmer has purchased a larger quantity of fuel, financial support will be provided only for the volume considered standard for the type of crop or livestock activity.

Conditions for getting support

To benefit from compensation, farmers will have to submit a file to AIPA within a call that will be launched by order of the Agriculture Ministry. The documentation will include an application form, a declaration on own responsibility, a certificate issued by the local public authority confirming agricultural activity, documents regarding livestock sector activities, copies of diesel purchase invoices and proof of holding a bank account in Moldova.

After the applications are submitted, the files will be analyzed by the Agency for Intervention and Payments in Agriculture, which will check the documents and authorize payment for eligible beneficiaries.

Measure aimed at reducing cost pressures

The authorities justify the introduction of this mechanism by the significant increase in production costs in agriculture, especially against the background of fluctuations on energy markets and rising fuel prices.

Diesel fuel is one of the main inputs used in agriculture, being necessary in all stages of the production process—from soil preparation and sowing to plant protection treatments, harvesting and transport.

Under these conditions, the government says that the measure is temporary and aims to mitigate the impact of price increases on farmers during the spring agricultural works.

On the other hand, farmers’ representatives say that the main problem remains the availability of diesel fuel on the market. According to organizations of the sector, in certain cases, fuel market operators do not provide sufficient volumes or apply higher prices and farmers are calling for the compensation programme to be extended for a longer period than the one provided in the draft.

The authorities, however, say that they will continue to monitor the situation in the sector and will analyze the need for additional measures to support agricultural producers.