Farmers to gain access to modern agricultural machinery and irrigation systems with Japan’s support

The Government of the Republic of Moldova

Farmers in the Republic of Moldova will gain access to modern agricultural machinery and equipment, irrigation systems, digital solutions, and equipment for storing and processing agricultural produce. The investments will help farmers modernize their farms, reduce water and energy consumption, and cope with climate change.

To this end, the Government approved the initiation of negotiations and the signing of an agreement with Japan to continue the Modernization of Agricultural Machinery and Equipment project. The new phase provides financing of up to approximately $55 million, with the support of the Japan International Cooperation Agency (JICA).

“We are attracting this financing from Japan. With these funds, our farmers can purchase machinery and repay the cost in installments, at prices 10–15% lower than the market price. The state acts as an intermediary, helping farmers obtain financing under favorable conditions, and we are grateful to the Government of Japan for its contribution over the years. An important aspect is that the state does not repay the loan; the farmers will repay the money. The interest rate is also 3.2%. Many of the modern combine harvesters and tractors we see were purchased through this Japanese program, which offers farmers lower prices, the possibility of paying in installments, and extremely favorable loan costs,” said Prime Minister Vasile Tofan.

Through the project, farmers will be able to invest in modernizing agricultural operations, using resources more efficiently, and improving the conditions for storing and processing their harvests. These investments will help reduce production costs and increase farm competitiveness.

The financing will be provided over a period of 20 years, with a six-year grace period. The project also includes a mechanism allowing repaid funds to be used to finance other agricultural investments.

The project will be implemented by the Agency for the Development and Modernization of Agriculture, in cooperation with the Agricultural and Rural Advisory Center and the National Office of Vine and Wine.

The new phase continues cooperation between the Republic of Moldova and Japan in developing agriculture. Since 2021, eight projects have been developed and implemented in the agricultural sector with Japan’s support. They have supported the purchase of agricultural machinery, the modernization of livestock farms, the use of renewable energy and digital solutions, as well as farmer training.

During the previous phase of the project, 472 farmers from all districts of the country received financing, mobilizing total investments of approximately 816 million lei for the purchase of 841 agricultural machines and pieces of equipment.