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ORDER OF THE MINISTRY OF AGRICULTURE AND FOOD INDUSTRY OF THE REPUBLIC OF MOLDOVA

of October 23, 2014 No. 229

About approval of Standard rates of net income

For the purpose of execution of provisions st.3 the Order of the Government RM No. 514 of May 10, 2007 about approval of some regulations (it is published 25.05.2007 in Monitorul Oficial al Republicii Moldova No. 70-73, of the Art. 553) I ORDER:

1. Approve Standard rates of the net income gained by peasant (farmer) and domestic subsidiary farms from production of crop animal production in 2013 according to appendix.

2. Publish this order in Monitorul Oficial al Republicii Moldova.

Minister of Agriculture and food industry of the Republic of Moldova

Vasile Bumakov

Appendix

to the Order of the Ministry of Agriculture and food industry of October 23, 2014 No. 229

Standard rates of the net income gained by peasant (farmer) and domestic subsidiary farms from production of crop and animal production in 2013

1. Standard rates of the net income gained by peasant (farmer) and domestic subsidiary farms (further – Standard rates of net income) are developed according to the Order of the Government of the Republic of Moldova No. 514 of May 10, 2007. The main objective of development of Standard rates of net income is dictated by need of ensuring social and cost efficiency of providing the address compensations approved by the Order of the Government No. 1117 of October 27, 2005. "About increase in system effectiveness of the public assistance" (1).

Need of development of standard rates of net income from agricultural activities was noted in article 5 of the Law on the public assistance and in the Actions plan on increase in efficiency of providing address compensations (2).

____________________

(1) Monitorul Oficial al Republicii Moldova, 2005, No. 151-153, Art. 1221.

(2) Monitorul Oficial al Republicii Moldova, 2004, No. 42-44, Art. 249.

2. As methodical base and methodology of calculation of net income "The procedure of payments of the size of the standard rate of the net income gained by peasant (farmer) and domestic subsidiary farms from production of crop and/or animal production" was used. (3)

____________________

(3) Monitorul Oficial al Republicii Moldova, 2007, No. 72-73, Art. 553.

3. For the purpose of determination of the amount of net income statistical data concerning structure of the processed areas, average productivity of crops and average price of realization of agricultural products (crop and stock-raising) in peasant farms with the used area up to 10 hectares and in subsidiary farms of the population for geographical zones (the North, the Center, the South) in 2013 were used. Content of the corresponding materials is provided in appendices 1, of 2, 4. Normative rates of product cost and agricultural services were calculated based on the staticized data concerning variables and fixed production costs (appendix 3).

4. Proceeding from situation that about 10% of small producers of agricultural products (peasant farms and domestic subsidiary farms of the population) practice only production of crop products, calculation of standard rates of net income is made separately for (i) crop sector, (ii) of the zootechnical sector, (iii) of the agricultural sector in general (appendices 6, 7 and 8).

Differentiation of standard rates of net income for the area, the village (commune) becomes on the basis of the available estimates of site class of the soil of the respective area, village (commune). Mechanisms of differentiation of standard rates of net income in borders of each geographical zone are separately reflected in the instruction for calculation of standard rates of net income in peasant farms and in domestic subsidiary farms of the population received from production and realization of agricultural products (appendix No. 2 to the Order of the Government No. 514 of May 10 2007) (3, p. 30-31).

_____________________

(3) Monitorul Oficial al Republicii Moldova, 2007, No. 72-73, Art. 553.

Appendix 1

to Standard rates of net income

Structure of the areas in crop production
(the sowed areas plus the areas of long-term cultures = 100%)

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