The Parliament of Moldova adopted in the first reading the draft law on subsidies in agriculture and rural areas.
The document establishes the principles of the state policy of subsidizing agriculture and rural areas; powers of public authorities in the field of subsidizing the development of agriculture and rural areas; forms and conditions of subsidizing; features of the procedure for receiving and considering applications for subsidies. The bill is aimed at increasing the competitiveness and sustainable development of the agro-industrial sector; ensuring sustainable management of natural resources; sustainable socio-economic development of rural areas. It is planned that in order to achieve these goals, the state will support: the modernization of the agri-food chain in order to comply with the requirements of the European Union regarding food safety and quality; facilitating farmers' access to markets for capital, inputs and finished products; introduction of modern practices of natural resource management; introduction of production technologies that are friendly to the environment, ecological products, as well as the conservation of biodiversity; adaptation to climate change and mitigation of its consequences for agricultural production; development of access infrastructure and services in rural areas; development of micro, small and medium farm enterprises, etc. In particular, the draft Law on Subsidies in Agriculture and Rural Areas regulates the provision of subsidies for agriculture, forestry, fish farming, as well as economic and cultural activities in rural areas. In accordance with the recommendations of the Council of Europe, farmers will be divided into 4 categories - micro (up to 9 employees and a turnover of up to 18 million lei per year), small (up to 49 employees and up to 50 million lei), medium (up to 249 employees and up to 100 million lei of turnover per year) and large (more than 249 employees and a turnover of over 100 million lei per year). The Ministry of Agriculture will be the government body responsible for implementing the Law on Subsidies, while the Agency for Intervention and Payments in Agriculture (AIPA) will manage the National Fund for the Development of Agriculture and Rural Areas, as well as other financial resources. The main source of financing will be the mentioned fund, the volume of which for 2023 is 1.5 billion lei. At the same time, the bill provides for 5 types of subsidies: advance, post-investment, phased, direct and additional payments. Herewith, phased financing is proposed to be introduced for the first time - funds will be provided for up to 36 months for each of the stages of the investment plan approved by AIPA, however, the beneficiary is required to contribute at least 50% of the project cost. When developing forms of subsidies, the best practices of the European Union in this area and the Common Agricultural Policy were taken into account. The draft law also provides for certain categories of beneficiaries for whom simplified conditions for granting subsidies are possible. Payments are made within 10 days, depending on the circumstances, from the date of: issuance of an administrative act; conclusion of the contract; applying for payment; decisions of the relevant central authority. Payments are made through the public service of electronic payments to the payment accounts of the beneficiaries in order. AIPA will also monitor the use of subsidies for 5 years from the date of their issuance. In order to effectively manage the funds of the National Fund for the Development of Agriculture and Rural Areas, it is proposed to develop an integrated information system that will contain data on land, subsidies, inspections, farmers who have applied for subsidies, etc.// 16.03.2023 — InfoMarket.
