Farmers will be able to invest more in modernising the agricultural sector. The Cabinet of Ministers approved new forms of subsidy
Moldovan farmers and associations of irrigation water users will have the opportunity to invest more in the modernisation of the agricultural sector, diversification of production, development of processing infrastructure and increasing the competitiveness and quality of their products. The Cabinet of Ministers approved a new regulation for two other forms of subsidy.
The new provisions will help improve the performance of agricultural businesses and bring food quality and safety requirements in line with EU standards, said Agriculture and Food Industry Minister Vladimir Bolea.
"In order to motivate young farmers, women farmers and returning migrants, it is proposed to increase the subsidies calculated under general conditions by 10% of the authorised subsidy amount. For investments in machinery or equipment made in the Republic of Moldova, the draft provides for a 20% increase in the subsidy. By implementing the regulation, the state will help support at least 7,000 farmers - beneficiaries of subsidies - annually, for which about 50% of the National Fund for the Development of Agriculture and Rural Environment will be allocated. It will also make it possible to attract more than 5 billion lei in investments in the agro-industrial sector each year, which will help create around 2,000 new jobs, including seasonal ones," Vladimir Bolea said.
According to the regulation, the post-investment subsidy takes place after the investment has been made, based on the costs borne entirely by the farmer. Subsidisation of phased investments will be made on the basis of the investment project, assessed by AIPA and authorised for payment of the subsidy after implementation of each phase, based on the full costs incurred. The period of full implementation of the phased investment project is up to three consecutive years.
The annual ceiling for an applicant under the post-investment grant form is a maximum of 7 million lei. An exception is made for livestock farmers, who will be able to access up to 10 million lei. At the same time, the state will provide up to 12 million lei to milk processing units, the founders of which are also milk producers, and up to 12 million lei to milk producers. For agricultural producer groups, business cooperatives or associations of irrigation water users, the subsidies will not exceed 15 million lei.
