The People's Party of Moldova (PPRM) claims that the 2014 policy of subsidization in agriculture is discriminatory. Valeriu Cosarciuc, co-leader of PPRM, said during a press conference at IPN that the analysis of the subsidization regulation showed that the government didn't intend to support the work of peasants and small farmers, even though they are the basis of national agriculture.
PPRM suggests that at least half of the subsidy fund should be alloted to peasant households and small farmers that work up to 70 ha of farming land. Moreover, loans and savings associations should be eligible for subsidization in the name of the small farmers that obtain loans from them.
Another proposal is that the maximum subsidy for one beneficiary should not be more than 1 million lei. In order to encourage investments in multi-annual plantations, PPRM wants that the minimum surface criterion of eligibility for subsidy to be changed from 0.5 ha to 0.1 ha. In case of vegetable farming in protected conditions – winter greenhouses, solaria or tunnels, the minimum eligible surface should be reduced from 0.3 ha to 0.1 ha. The changes are meant to help small and medium farmers with reduced financial possibilities.
As regards the stimulation of investments in farming equipment and machinery, PPRM want subsidies of up to 60% of the cost for irrigation systems, 50% (but not more than 350,000 per beneficiary) for tractors and agricultural equipment. For groups of farmers or young ones, the proposed subsidy is of 70%.
PPRM insists on encouraging investments in post-harvesting and processing infrastructure and proposes the compensation of 50% of the cost of technological equipment for grape processing enterprises (that work areas smaller than 20 hectares) and winemakers producing wines with geographical indications and designations of origin with annual capacities under 200 tonnes of wine, in rural areas. Valeriu Cosarciuc thinks that such measures could encourage the construction of traditional wineries and this will boost tourism.
The PPRM team is confident that the modification of subsidy regulations according to their proposals will help small farmers and agriculture as a whole. Cosarciuc added that if authorities don't support the farmers, protests could be staged.
