The Law on Subsidies in Agriculture and Rural Areas was published in Monitorul Oficial (the Official Journal of Moldova).
This law replaced the hitherto existing Law on Principles of Subsidies for Agricultural and Rural Development. It establishes the principles of the state policy on subsidies in agriculture and rural areas; the powers of the authorities in the field of subsidies for agricultural and rural development; the forms and conditions of subsidies; and the peculiarities of the procedure for the receipt and consideration of applications for subsidies. According to the law, farmers-beneficiaries of subsidies will be divided into 4 categories: micro (up to 9 employees and 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 turnover of up to 100 million lei per year) and large (over 249 employees and turnover of over 100 million lei per year). The state body responsible for the implementation of the Law on subsidies will be the Ministry of Agriculture, and the Agency for Intervention and Payments in Agriculture (AIPA) will manage the National Fund for Agricultural and Rural Development, and other financial resources. There are five types of subsidies: up-front, post-investment, staggered, direct, and supplemental payments. Phased payments are 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 must 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 law also stipulates 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. It is envisaged that AIPA will monitor the use of subsidies for 5 years from the date of their issuance, and for efficient management of the National Fund for Agricultural and Rural Development an integrated information system will be developed, which will contain data on land, on subsidies, on inspections, on farmers who have applied for subsidies, etc. // 20.04.2023 – InfoMarket
