The first 27 agricultural startups will receive in advance state subsidies amounting to about 13 million lei

The first 27 agricultural startups will receive in advance state subsidies amounting to about 13 million lei

Certificates on the selection and on the further receipt of subsidies were issued on November 12 by the Minister of Agriculture, Regional Development and the Environment, Nicolae Ciubuc. He noted that during the first stage of selection, 38 applications were submitted for a total amount of about 32 million lei. More than 60% of applications filed related to the cultivation of perennial plants. Also, subsidies are approved for the cultivation of fruits and vegetables, the purchase of livestock, beekeeping, growing nuts, etc. About 60% of the beneficiaries are women. Subsidies will start to flow into the accounts of the beneficiaries after the conclusion of contracts and after the farmers confirm their financial ability to implement their projects: within 60 days the beneficiaries will have to pay about 35%. The minister also said that within the framework of the second stage of receiving applications, 10 requests had already been received for a total amount of subsidies amounting to 5.3 million lei. Let us remind that in 2018, 45 million lei were allocated in advance for the payment of state subsidies to agricultural start-ups. Funds are issued on the basis of a business plan for projects in rural areas initiated by young entrepreneurs (18-35 years old) or women. The maximum advance payment on subsidies for farmers is 650 thousand lei and not more than 65% of the total investment required for the project. In order to receive subsidies in advance, a number of conditions must be met: beneficiaries must contribute about 10% of the total project cost; the total investment required for the project implementation should not exceed 1 million lei; the project must be implemented in rural areas; the beneficiary must create at least 2 permanent jobs (or hire at least 3 day laborers on a contract basis); the project implementation period is up to 24 months. The advance subsidy service can be used only once. This mechanism to support the development of entrepreneurship in rural areas is planned to be introduced in 2018–2021, and from 5% to 10% of the budget of the National Fund for the Development of Agriculture and Rural Areas will be allocated annually for the payment of subsidies in advance. Minister Nicolae Ciubuc said at a press conference on November 12 that, in addition to startups, the program on paying state subsidies in advance is planned to be expanded to other enterprises (developing, willing to diversify markets, etc.). //12.11.2018 - InfoMarket.

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