Moldovan Parliament passes in the second reading the Draft Law on Subsidies in Agriculture and Rural Areas.
The document establishes the principles of the state policy of subsidization in agriculture and rural areas; the powers of public authorities in the field of subsidizing the development of agriculture and rural areas; forms and conditions of subsidies; features of the procedure for receiving and reviewing applications for subsidies. The draft law aims at improving the competitiveness and sustainable development of the agri-industrial sector; to ensure 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: modernization of the agrifood chain in to meet EU requirements for food safety and quality; promotion of farmers' access to markets for capital, inputs and finished products; introduction of modern natural resource management practices; introduction of environmentally friendly production technologies, ecological products, and biodiversity conservation; adaptation to climate change and mitigation of its effects on agricultural production; development of rural access infrastructure and services; development of micro, small and medium-sized 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. According to 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 per year) and large (over 249 employees and a turnover of over 100 million lei per year). The state body responsible for implementing the Law on subsidies will be the Ministry of Agriculture, while the Agency for Intervention and Payments in Agriculture (AIPA) will manage the National Fund for Agricultural and Rural Development and other financial resources. The main source of financing will be the mentioned fund which volume for 2023 is 1.5 billion lei. At the same time, the bill provides for five types of subsidies: advance, post-investment, phased, direct and additional payments. At the same time, stage-by-stage financing was proposed to be introduced for the first time - funds will be provided for up to 36 months for each stage of the investment plan approved by AIPA, but the beneficiary is obliged to contribute at least 50% of the project cost. Best practices in this area and the Common Agricultural Policy were taken into account when developing the forms of subsidies. The bill 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 an agreement; submission of an application for payment; and decision of the relevant central authority. Payments are made through the state service of electronic payments to the payment accounts of the beneficiaries in the order. AIPA will also monitor the use of subsidies for 5 years from the date of granting. To effectively manage the funds of the National Fund for Agricultural and Rural Development it is proposed to develop an integrated information system that will contain data on land, subsidies, checks, farmers who applied for subsidies, etc. // 31.03.2023 – InfoMarket
