Record Funding Boosts Moldovan Agriculture in 2023 Amidst Farmers’ Demands and State Support

The Ministry of Agriculture and Food Industry (MAIA) reports that during the course of 2023, more than 1.093 billion lei have been deposited into the accounts of farmers in the Republic of Moldova, marking a 17% increase compared to the same period last year.

According to the ministry, 86% or 934.6 million lei were directed to farmers, another 12% or 138.6 million lei to local public administrations, and 2% or 19.7 million lei constituted the state’s contribution to the Wine and Vine Fund.

“Most farmers are investing in the development of post-harvest and processing infrastructure, accounting for 18% of the paid subsidies or around 200 million lei. Approximately 213 million lei is allocated for the repayment of loan installments, while about 160 million lei from the state is disbursed for the acquisition of agricultural machinery and equipment, including mini-till and no-till. Another 10% of the sum of paid subsidies, or 100 million lei, has been directed towards revitalizing the zootechnical sector, and subsidies requested for the establishment, modernization of perennial plantations, and clearing unproductive ones amount to about 96 million lei,” the ministry stated in a press release.

At present, out of the subsidy application requests submitted in 2022, AIPA (Intervention and Payments Agency for Agriculture) is still processing only 704 files out of a total of 10,864, of which 294 requests are facing difficulties in examination, as farmers are being notified to complete the files with additional documents.

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“We note that the Intervention and Payments Agency for Agriculture is currently in the process of receiving requests for the subsidization of complementary measures and motor fuel excise. Therefore, until September 30th, farmers can submit requests for subsidies for motor fuel purchased from June 30, 2023, until September 30, 2023, inclusive, and for the following complementary measures: Stimulating access to investment loans or working capital loans; Stimulating promotional activities; Stimulating the use of irrigation systems; Developing organic farming; Implementing good agricultural practices; Clearing perennial plantations; Counselling and training services in agriculture; Stimulating association in producer groups,” MAIA further informs.

The ministry presented the data regarding the state support provided to farmers this year, following threats from farmers to protest and block national routes with agricultural equipment if the urgently promised 200 million lei from the Intervention Fund for compensation for the first group crops are not allocated if the donated motor fuel from Romania is not distributed, and if a moratorium on penalties calculation, forced execution of obligations, and initiation of insolvency procedures for farmers is not introduced.”

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