Ministry of Agriculture: State subsidies will continue in 2010 in a new form

The ministry will continue to grant state aids for farmers after January 1st 2010, but in a different manner. "This decision was made as the Government wanted to keep the state aids going, but the European Commission rejected Romania"s proposal. For this reason, officials of the Ministry of Agriculture have identified new ways of continuing to aid farmers and at the same time being compliant with the European regulations on state aid. The Commission will be notified later on these new types of aids", the press release of the Ministry says.

To this end, discussions were held with farmers and EC experts, and several draft laws that will come into effect starting January 1st 2010 were drawn up.

According to the Accession Treaty, Romania was allowed to provide support to its farmers in the 2007-2009 period, in ways that do not comply with the European regulations concerning state aid. Farmers are aware of these types of support that the European Commission has been notified about, and are aware that most of them will no longer be available in their current form starting in 2010.

Some aids which will no longer exist in their current form starting in 2010, include aids for crops of beetroot, rice, linen and hemp, soy and tobacco; subsidies for diesel oil used in farming works; subsidies of seeds for fruit farming and vineyards; aids for pork and chicken production - broiler chicken and eggs for human consumption; aids for improving the quality of hygiene of cow milk to have it reach EU quality standards; funding for breeding material used for artificial fertilization of bovine females.

According to the Ministry, some of the current aids that the state provides will continue in 2010, but in a revised form. These include compensations in the case of natural calamities; crop and livestock insurance; compensation for diseased livestock; the management of genealogy registries - in the form of subsidies for services; aids for meeting the additional requirements needed to ensure the welfare of animals; funding nationwide health inspections; supporting agricultural investments - guaranteeing investment loans; guaranteeing 80% of the working capital of SMEs; lowering excises for diesel oil used for agricultural activities, horticulture, including irrigations, stockbreeding, forestry, and lowering excises for electricity used for irrigation.

In 2008, in cooperation with the farmers, the European Commission initiated and approved tow new types of state aid compliant with EU legislation. They were targeted at losses in the orcharding sector caused by late spring frost, and a lowering of excises for diesel oil used in the year 2008 (from 274.625 euro/1000 liters to 80.971 Euros/1000 liters, meaning a discount 193.654 Euros/1000 liters).

According to EU regulations, a de minimis aid was granted for the autumn 2008 seeding campaign, for the fruit and vegetable sector and for ecological agriculture.