This year’s heavy snowfall is favourable to agriculture, Info-Prim Neo interview with the vice chairman of the National Union of Agricultural Producers’ Associations “Uniagroprotect”, Alexandru Slusari.

[Shall we expect a good agricultural year? What consequences can last summer’s drought have on agriculture this year?] If we judge by the weather conditions, 2008 has all the chances to be much better for agriculture. In autumn we had rain and in winter we have snow. If the difficulties of February-March 2003 do not repeat, we will have a good spring and consequently a good harvest. Evidently, last year’s drought has financial consequences. We must not forget that many economic entities had to repay loans in autumn. Even if rescheduled, the loans will have a considerable impact on a large part of the producers this year too, because they will have to repay them this year. In addition, the loans that will be probably taken in spring will also have to be repaid in autumn. In such a way, the farmers will have to bear a double financial burden compared with the last year. [Do you think that the banks will be reluctant to granting loans to farmers given that many of those that took out credits last year could not repay them in due time because of the drought?] Traditionally, the limited access to financial resources is one of the most serious problems encountered by the farmers. Even if we do not take the drought’s consequences into account, each spring the agricultural producers face financial problems and most of them are forced to apply to financial institutions for credits. Though many of them manage to repay these credits in autumn, the problem continues to exist. The banks as a rule provide credits to the companies that provide pledge and are good loan payers. Therefore, I do not think that the farmers will encounter problems when applying for new credits. Moreover, the banks understand that the situation in 2007 was difficult and try to help the farmers. [Does the agriculture subsidisation fund for this year include resources for assisting the farmers in overcoming the consequences of the drought?] I know that the Government is considering the possibility of allocating subsidies in the form of diesel oil to farmers in spring. The quantities are now being assessed. Generally speaking, the agriculture subsidisation fund for this year envisages the allocation of subsidies for purchasing irrigation systems, for greenhouses and fridges. The initial value of the fund approved in December 2007 is 270 million lei or by 30 million lei more than the initial sum approved last year. During 2007, the fund was supplemented by another 200 million lei. The fund does not envisage current subsidies for alleviating the impact of the drought, but the acquisition of irrigation systems can be considered as the state’s contribution. The state did not subsidise the purchase of irrigation systems last year. In 2008, it earmarked 20 million lei for the purpose and will cover 20% of irrigation systems’ costs. The fund for subsidising risks in agriculture was expanded by 3 million lei to 18 million lei. In 2007, the state covered 80% of the costs of the insurance premiums in agriculture and we think it will do the same this year. 2007 was a good year as regards the insurance of crops by farmers. The 15 million lei fund planned by the Government was used up. An additional sum of 5 million lei is to be allocated from the budget to pay the insurance costs. All these increases are a step forward, but the resources allotted will not solve farmers’ problems. [What areas would be profitable for farmers to invest in this year?] We have maintained the same position for several years. High value products that give a high yield per unit of area can be obtained in three-four areas. These are: fruit growing, especially intensive orchards; winegrowing, especially table sorts of grapes, and vegetable growing. Sugar beet growing is less profitable, but also of strategic importance. The farmers become more aware of the importance of these crops, especially the ones that used modern technologies in 2007 and had a rather good harvest and profits despite the unfavourable weather conditions. The state is also aware of this because it allocated 30 million lei for supporting fruit growing this year. I do not know the exact figure for winegrowing because the subsidies are included in an extra-budget fund. But I think that the subsidies for this year will remain at the level of 87 million lei as in 2007. Vegetable growing will be supported by purchasing irrigation systems and equipment for hothouses. For the first time, the state will allocate resources for subsidising the construction of refrigerators and for buying equipment for freezing and packing vegetables and fruit – about 20 million lei. It is a small sum, but at least the state realises what the priorities are and we are unanimous with the state in understanding the strategies. [What should the farmers know to avoid last year’s experience?] Of course, they should know how to implement modern technologies. Even if insufficiently, the state subsidises the acquisition of agricultural machinery and irrigation equipment, the planting of orchards and vineyards, the purchase of equipment for building greenhouses. The state takes steps and concerted effort is needed to attract technical assistance from donors so as to develop the above-mentioned areas. The farmers should also understand that the use of modern technologies and modern equipment is the future of agriculture. But they again encounter problems because the credits are expensive and the investment and subsides insufficient. The farmers are informed about subsidies in time through the network of regional associations and through the Ministry of Agriculture and Food Industry. There are very few projects from donors, maybe because we inadequately cooperate with them. We must attract more technical assistance. Possibly, the donors have other priorities, but we must be more convincing in demonstrating to them what Moldovan agriculture’s priorities are. If the number of such projects is low, it means that the Government and the non-state organisations must eliminate the existent drawbacks. Despite all the difficulties, the farmers must make effort to purchase modern equipment because the agricultural year 2007 proved that the ones that had such equipment and used modern technologies coped with the drought and could earn money.