Increased subventions for farmers, starting in 2010

Our country obtained, the right to supplement direct payments by 800 million euros for the 2010-2012 period, with funds from the National Budget, following negotiations for the Common Agricultural Policy (CAP).

According to the Ministry of Agriculture, payments per hectare will increase by approximately 40 Euros, compared to the amounts provided in the accession treaty.

The Minister of Agriculture Dacian Cioloş explained: "Following the negotiations we will succeed in reaching faster the maximum allowed amount concerning the subvention per hectare. We gained the possibility to increase subventions using funds from the state budget starting 2010. We would have wanted to do this starting in 2009, but we couldn"t obtain it, since in Romania, there are various types of state aids, and the European officials did not agree for this increase to begin in 2009. Starting in 2010, these aids will no longer be provided, and the subventions, both those coming from EU funds, as well as those coming from the state budget, will reach 175-177 Euros /hectare. As the CAP budget will not be revised until 2013, I can say that we have won two years in this regard".

On the other hand, following the negotiations, Romania obtained, the extension of the delay for complying with the eco-conditionality requirements concerning animal welfare in farms until January 1st, 2016. We hereby specify that the initial delay was 2014.

According to the Ministry of Agriculture, this decision will reduce the "burden" of administration and related costs, for farmers as well as for the State authorities.

Following the negotiations, our country has also obtained an exclusion of sanctions, for the community aid of up to 100 Euros (ed.note.: the de minimis rule concerning the eco-conditionality from the First and Second Pillar), in the event of the farmers not abiding by the community regulations.

According to the ministry, the measure is welcome, due to the great number of farmers that exploit small plots of 4-5 hectares.

"An important result of the negotiations was the setting of the maximum funding percentage of 10% in the case of new member states to the level of the full limit of direct payments", clarified Dacian Cioloş.

Thus, following the revision of par. 68 (The funding of the measures provisioned in paragraph 68 of the year 2010), Romania will obtain 17.7 million euros a year (for a period of six years), for the milk, rice, or agricultural activities unfolding in difficult production conditions.

"The maximum percentage that can be used of the 10% for production related payments has been set at 3,5%, as against 2,5% as initially proposed", clarifies a communiqué issued by the Ministry of Agriculture.

Concerning the milk quotas, they have been increased by 1% a year (for the 2009-2013 period), until their elimination in 2015.

Dacian Cioloş also mentioned that the restriction concerning the limitation of investments through PNDR has been eliminated, for one type of production only within the farm at the milk quota level.

Also, the market intervention has been maintained for durum wheat semolina, rice and milk.

"The intervention for bread wheat will take place in the intervention period between November 1st and May 31st, at the intervention level of 101, 31 Euros/ton up to a maximum volume of 3 million tons at the level of the entire European Union", explained Dacian Cioloş.

Concerning market risk insurance and natural conditions insurance, the maximum amount of public aid in case it is used is 65%, as against the current provisions of the Community for the veterinary and phytosanitary sectors, where a public funding of only 50% applies.

"Of the public funding for this measure, UE ensures a 75% co-financing, with the balance to be approved from the national budget", clarify the representatives of the Ministry of Agriculture.

Last but not least, the minimum limit for investments was increased from 55.000 Euros to 70.000 Euros per farm.

According to Minister Cioloş, this measure will be launched on December 3rd, with tens of thousands being expected to benefit from this measure.