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Who swallows the most subsidies from agriculture?

2017.08.07 Economie Victor Ursu Print version

The subsidy field is vital for farmers as they cover some of the investments made by farmers but need to improve the money-making mechanisms, the IDIS program director, Viorel Chivriga explained in the 15 minutes of economic realism program Future.

Chivriga points out that positive changes are visible in AIPA's work. Especially on the side of ensuring transparency, informing stakeholders and disseminating positive practices. However, a number of issues persist. In 2017, as in previous years, the regulation on the application of the Law on subsidies to agricultural producers, although approved, did not come into force, not published in the Official Gazette. Most of the beneficiaries of subsidies (74%) represent 3 professional organizations in agriculture. In 2016, the funds of the grant fund were distributed under 5 measures and 13 sub-measures. The number of beneficiaries was 4321, higher than in 2015, and lower compared to 2014 (5133) and 2012 (4457). This shows that the Law on the organization and functioning of agricultural and agri-food markets is good only on paper. Many sub-measures are ineffective. Among them is the stimulation of the risk insurance mechanism in agriculture. In 2016, only 118 economic agents were filed under this sub-measure, out of which 104 were authorized.

Viorel Chivriga said that the number of rejected files is on the rise. In 2016, the AIPA rejected 224 files amounting to 52589400 lei, which represents 7.5% of the allocated amount or about 10% of the amount executed. Most cases were rejected under sub-measures 1.2 (Stimulating investment for setting up, upgrading and deforestation of multiannual plantations) - 73 and 1.7 (Stimulating lending to agricultural producers by commercial banks and non-bank financial institutions) -20. At the regional level, the prefectures in the development region South - Comrat, Cahul, and Cantemir are predominant in the submission of files and partly in obtaining subsidies.

In order to improve the subsidy mechanism, Viorel Chivriga recommends the quantitative and qualitative assessment of the impact of the subsidy on the agri-food sector development. Using a wider spectrum of indicators, illustrating the real effect of financial support from the state: increasing productivity and production volume, turnover, value of exported production, new jobs, increasing production quality.

In conclusion, he said that, in order to increase productivity and competitiveness in agriculture, stabilize the market, ensure food security and fair income for farmers, it is timely and reasonable to grant direct payments, depending on agricultural crops, animal and bird species, Of the individual average yield in the case of compliance with the regional one as well as the actual actual area or the number of animals in possession.

The show is made by IDIS Viitorul in partnership with Radio Free Europe.

For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at or call 069017396.

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