Romania to ask rise in subsidy per ha

Romania will ask for a rise in the subsidy per ha up to 50% of the level of financial support for the old EU states, starting in 2009, said on Sept. 2 Minister of Agriculture and Rural Development Dacian Ciolos, at a seminar on Romania’s position in the reform of the Common Agricultural Policy, CAP.
“Romania will say it is necessary to raise the subsidy from five to 10% annually, until 2013-2014, to higher sums, between 15 and 50% annually, for Romania to reach, in the next two years, the same level of financial support as the old EU member states, “ Ciolos said.

Direct payments to farmers is one of the sensitive issues under discussion for Romania, under the CAP, with several member states, such as Hungary, Bulgaria, the Czech Republic, Poland, Slovakia, Lithuania, Latvia, supporting the uniform character of payments.
“Romania has proposed the European Commission the prolongation, after 2009, of the possibility to use the funds for rural development for payment of direct payments,” Ciolos also said.
The budget allocated to Romania as part of the single payment scheme per area for 2007 stood at 440 million euros, coming from the European Agricultural Fund for Guaranteeing in Agriculture (FEGA), representing a subsidy of 50.5 euros/ha, to which 290.2 million euros are added, from the European Agricultural Fund for Rural Development (FEADR) and from the national budget.
For 2008, the budget allocated under FEGA amounts to 527.9 million euros, with Romanian farmers receiving 60.6 euros/ha. Payments from the national budget are added to that, put, for 2007, at 47 euros for the basic cultures.

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