Agriculture subsidisation system will be replaced

The present agriculture subsidisation system will be replaced by a new system that will focus on the investments in modernising the agrifood sector. The Government approved the concept of the system for subsidising the agricultural producers for 2008-2015 on November 7. Minister of Agriculture and Food Industry Anatol Gorodenco says that the current system is outdated. The subsidisation system for 2005-2007 was intended to stimulate such activities in agriculture as the creation of service stations, extension of vineyards and orchards, support to sugar beet sector etc. This contributed to the enlargement of the cultivated areas and excluded the risk of closing sugar factories. According to Gorodenco, the new conception sets out two priorities for the next years: the state will allocate subsidies for modernising agriculture, including re-equipping the companies, technologically adjusting the enterprises that produce and process raw material; and for obtaining results in the agricultural sector by supporting the increased productivity in the agrifood sector and the competitiveness of the agrifood products. To date, the subsidies were divided into current subsidies and investment subsidies, by 50% each. The new conception envisages the gradual increase in the share of investment subsidies during the next years. By 2015, the resources allocated from the subsidisation fund for subsidising investments will reach about 90%. The regulations approved by the Government also envisage the creation of a Payment Agency that will monitor how the subsidies will be spent. In 2001, the state allocated 11 mln lei for subsidising agriculture. According to the minister, the subsidies in 2007 will amount to about 472 mln lei. At the same time, he says, this year the state earmarked over 830 mln lei to support the agrifood sector.