Farm Subsidy Regulation nears completion

The new draft of the Farm Subsidy Regulation will soon be finished, announced Petru Maleru, head of the Agency for Agriculture Subsidies and Interventions, at a program on Radio Moldova. The document will keep the support measures applied in 2010, as the main changes are technical and meant to streamline the paper collection and subsidy allotment procedures, Info-Prim Neo reports. The following measures will be taken in 2011: encouraging the lending of farmers by banks and other financial institutions, supporting risk insurances in agriculture, encouraging investments in multiannual plantations (new species like almonds and berries have been included in the list), subsidization of investments in vegetable species on protected soil (including small and large trenches, in addition solar greenhouses). The government will support the purchase of technologies, tools and machines, irrigation equipment and anti-hail systems. Another point in the Regulation refers to the promotion and development of ecological agriculture. Subsidies are offered for three years of transition to ecological agriculture. Additional measures include attracting investments in the renovation of animal farms (funding limits have been canceled in order to support beef production), encouraging the purchase of breeders and maintaining the gene pool (the list of subsidized breeders was extended and now includes rabbits and other small animals). Investments in post-harvesting and processing infrastructure will be supported as well. Now, the compensation for irrigation energy expenses will be paid directly to farmers. The Regulation stipulates greater subsidies for restoring damaged lands, which will now cover up to 50% of the costs. Viorel Chivriga, IDIS Viitorul expert, stressed that the new Regulation had to focus on the modernization of agriculture. “It’s great the subsidy allotment procedure has been simplified. For example, farmers won’t need to present a business plan to obtain funds. Requirements regarding applicants’ education have been also eased. There are farmers who run efficient businesses without having completed any special courses. Last year, these requirements were a major obstacle in obtaining subsidies”, the IDIS expert said. Aurelia Bondari, manager of Agroinform Association, is concerned that the annulment of funding limits for certain subsidy measures can hinder smaller farmers’ access to funds. “It’s expected that 500 million lei will be allotted this year in farm subsidies. Considering last year’s subsidies debt of 200 million lei, there won’t remain enough money to cover current needs and complete transition to modern agriculture”, Aurelia Bondari said. She added that farmers’ association is an inevitable process, but it must not be forced. The requirement for a farmer to be member of an association in order to receive subsidies resulted in many such organizations being created for a single day.