CDER seeks greater transparency in formulation of regulations on agricultural subsidies

The Coalition for Rural Economic Development (CDER) says the regulations concerning the subsidization of agricultural producers are drafted without the participation of a large category of beneficiaries. At a meeting of the CDER club, it was stressed that about 1.1 million small, non-associated farmers have been practically excluded from this project, Info-Prim Neo reports. Viorel Ghivriga, representative of the CDER permanent delegation, said that the opinion of the small agricultural producers is not taken into account when drawing up the list of beneficiaries and determining the subsidization directions. Valeriul Rusu, of the Rezina-based Agency for Regional Development “Habitat”, said that the people know neither the names of those included in the subsidy distribution councils nor of the beneficiaries. Moreover, nothing is known bout the efficiency and results of subsidization. Deputy Minister of Agriculture and Food Industry Ion Perju said that the Agriculture Ministry contributes to the finalization of the regulations concerning the subsidization of agricultural producers. The regulations are usually worked out at yearend with the assistance of the National Farmers Federation of Moldova, Uniagroprotect Association, the USAID Agricultural Policy Project, agriculture trade unions and the World Bank. The deputy minister stressed that the list of members of the councils for monitoring the subsidization process will be published on the Agriculture Ministry’s website. The agriculture subsidization fund for 2009 totals 313 million lei, the official said. “The largest part of the subsidies will be investment subsidies, which insure a sustainable development in agriculture. The major subsidization directions include: planting of orchards; vegetable growing in protected areas, and purchase of equipment for small and medium-sized companies that process, dry and freeze fruit and vegetables. Resources will be earmarked for covering the costs of pumping water and for stimulating ecological agriculture,” Ion Perju said. The debate participants representing CDER said that this year the state subsidized the purchase of seeds, but problems were encountered at the distribution of money for covering the costs of pumping water. This type of subsidies is offered through Moldova’s Water Agency and the Agriculture Ministry does not have much control over them, experts said. Difficulties were also met when getting back the VAT on the sale of agricultural products on the home market. Representatives of CDER agreed with the Ministry that the investment subsidies should be raised to 90% of the total subsidies offered to agricultural producers. Petru Flocosu, of the Farmers Alliance in Drochia district, considers that they should return to the subsidization of interest on the loans taken by farmers from savings and loan associations, especially in this period, when the world financial crisis expands and it is more difficult to get loans from banks. CDER includes a number of NGOs that focus on reforms in agriculture, including AGROinform, IDIS Viitorul, “Habitat” Rezina, district farmers associations, Craftsmen’s Union, Contact, Business Consulting Institute, Agroext and others.