Draft regulation on farm subsidies generates arguments

The limitations included in the draft Regulation on the use of funds for agricultural subsidies are discriminatory against big companies, stated Alexandru Slusari, the deputy chairman of the National Farmers' Association UniAgroProtect, at a roundtable meeting held at IDIS Viitorul, Info-Prim Neo reports. Slusari referred in particular to the requirement of presenting a business plan to qualify for the subsidies, which shall include a number of specifications, like the renewal of the offer of products, the ratio between offer and demand, marketing researches, and other. These, according to him, leave room for subjectivity in assessing the business plans and in awarding subsidies. Slusari also expressed his disagreement with the requirement for the recipients to be part of associations, arguing that it would lead to a wave of new specialist associations whose main purpose will be to hunt subsidies. At the same time, UniAgroProtect considers that the priorities for awarding subsidies in 2010 were correctly selected, welcoming in particular the stimulation of lending for farmers. Vasile Myrzenco, chairman of the Federation of Moldovan Farmers, replied that while the draft regulation proposed by the Ministry of Agriculture and Food Industry is not ideal, it can't be called discriminatory against big companies. In the last three years, small farmers received only 10 percent of the subsidies granted by the government, so this new regulation is an attempt to find an equitable approach. “Concerning the requirement to belong to a specialist association, which was proposed by the Federation, perhaps more time is needed for these associations to be created in Moldova. But they have to exist. We often complain that we can't sell a particular foodstuff, but we continue to cultivate the same thing. Often we got overproduction and don't pay attention to products with high added value. These associations are also useful for their assistance with receiving subsidies, and this includes coordination, training, promotion of new methods of organizing work, etc”, argued Myrzenco. Vasile Bulmacov, deputy minister of agriculture and food industry, said that meeting the requirements will not be difficult, “but our farmers have to start learning some day how to make a feasible business plan. Training is also one thing they need to have”. For 2010 the government budgeted 300 million lei for farm subsidies.