Different ways to subsidize agriculture in 2010

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The state subsidies in agriculture will continue to be granted in 2010 as well, only that the way to be given will be different, the Ministry of Agriculture, Forests and Rural Development (MAPDR) informs.

„A decision was made due to the fact that efforts to continue to give state subsidies were done, but the European Commission (EC) rejected Romania’s blueprints.

Which is why the MAPDR representatives identified ways of support that should be of interest to the agricultural sector and to correspond to the European norms in the state subsidies’ area, that are to be notified”, the MAPDR communique reads.

In this respect, a series of talks took place with the agricultural producers and the EC experts, some legislative draft laws being already completed to be enforced with January 1st 2010.

According to the accession Treaty, over 2007-2009, Romania could enforce some measures of support which are not compliant to the state subsidies’ community rules. The farmers are aware of these (notified) state support and of the fact that most of them, in their current form, will come to an end in 2010.

Out of the support measures in the vegetal and livestock sector which do not observe the community rules of the state subsidies and will have to be stopped with 2010 are the subsidizing of the merchandise output of the sugar beet, rice, flax and hemp for fibre, soy crops, tobacco; subsidizing of the Diesel fuel for the farming works;

supporting the vegetables produced in the heated greenhouses; subsidizing of the seed potatoes’ output and certified fruit-growing and wine-growing engrain stuff; supporting of the pork and poultry output – broiler chicken and consumption eggs’ output (merchandise output);

improvement of the cow milk quality and hygiene in order to attain the EU quality standards; financing of the frozen bull seminal material used in the artificial insemination.

According to MAPDR, some existing state subsidies could be given further after 2010 as well, yet with small alterations. Will thus be analyzed the compensations’ granting for natural calamities; the insurance of the crops and the livestock; compensations for the livestock killed by diseases;

the leadership of the genealogical registry – as financing of services; state support for the phyto-sanitary services of national interest; investments support in agriculture – the guaranteeing of the investment credits;

guaranteeing of credits (80 percent) for the SMEs’ working capital; cut of the excise for the Diesel fuel used in agriculture, flower growing, irrigations included, animal husbandry, forestry etc.

In 2008, together with the farmers, two new state subsidies forms were initiated and approved by the EC, in compliance with the EU legislation.

They refer to a financial support for the losses caused by the spring late frost in tree fruit culture, and in the vegetal sector a cut of the excise of the Diesel fuel used in agriculture in 2008 (from 274.625 euro/1 ,000 liters, to 80.971 euro/1 ,000 liters, representing a 193.654 euro/1 ,000 liters’ cut).

Likewise, in compliance with the EU Regulation, a minimis support was given for the establishment of the 2008 fall’s agricultural crops, for the fruit and vegetables sector and the eco¬agriculture.

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