ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of June 10, 2015 No. 352

About procedure for distribution of fund of subsidizing of agricultural producers for 2015

Based on provisions of article 2 of the Law on the government budget for 2015 No. 72 of April 12, 2015. (The official monitor of the Republic of Moldova, 2015, Art. No. 102-104, 172) and article 21 of the Law No. 243-XV of July 8, 2004 on subsidized insurance of industrial hazards in agricultural industry (The official monitor of the Republic of Moldova, 2004, Art. No. 132-137, 704), with subsequent changes and amendments, the Law No. 312 of December 20, 2013 on groups of agricultural producers and their associations (The official monitor of the Republic of Moldova, 2014, Art. No. 47-48, 90), for the purpose of achievement of the strategic objectives of development of the agro-industrial sector stipulated in the National strategy of development of agricultural industry and the rural zone for 2014-2020 approved by the Order of the Government No. 409 of June 4, 2014. (Official monitor of the Republic of Moldova, 2014, No. 152, Art. 451), and also according to provisions of the Program of the European commission on industry financial support "Economic incentives in the rural zone" the Government DECIDES:

1. Accept the offer of the Ministry of Agriculture and food industry on distribution of fund of subsidizing of agricultural producers for 2015 in the amount of 610 million lei from which 110 million lei according to the scheme of the European commission on industry financial support "Economic incentives in the rural zone".

2. Control of fund of subsidizing of agricultural producers is exercised of intervention and payments Agency in the field of agricultural industry under the Ministry of Agriculture and the food industry.

These means will be used according to the following fields of support:

Area 1. Increase in competitiveness of the agrofood sector due to restructuring and upgrade

Measure 1.1. Subsidizing of investments into production of vegetables and fruit in glass-covered ground (winter hothouses, sunbeds, tunnels);

Measure 1.2. Subsidizing of investments into bookmark, upgrade and stubbing of long-term plantings, including grape and fruit plantings;

Measure 1.3. Stimulation of investments into acquisition of the equipment and regular agricultural equipment;

Measure 1.4. Stimulation of investments into the equipment and technology updating of stock-rearing farms;

Measure 1.5. Stimulation of acquisition of breeding animals and preserving their genetic fund;

Measure 1.6. Stimulation of investments into development of infrastructure of postharvest treatment and conversion:

submeasure 1.6.1. Houses of packaging and refrigerators for storage of fruit, grapes and vegetables;

submeasure 1.6.2. Processing, drying and freezing of fruit, grapes, vegetables and potatoes;

submeasure 1.6.3. Processing, drying and conditioning grain, seeds of oil-bearing crops, sunflower, soy;

submeasure 1.6.4. Slaughtering, packaging, chilling, freezing and storage of meat, conversion, packaging and storage of milk;

Measure 1.7. Simplification of access to the capital markets and production factors for farmers, including crediting of agricultural producers by commercial banks and non-bank financial institutions:

submeasure 1.7.1. Stimulation of crediting of agricultural producers by commercial banks and non-bank financial institutions;

submeasure 1.7.2. Stimulation of the mechanism of risks insurance in agricultural industry;

Measure 1.8. Stimulation of creation and functioning of groups of agricultural producers.

Area 2. Ensuring steady management of natural resources

Measure 2.1. Stimulation of investments into consolidation of farmlands;

Measure 2.2. Stimulation of agricultural producers for acquisition of the irrigating equipment;

Measure 2.3. Stimulation of agricultural producers for compensation of costs for irrigation;

Measure 2.4. Stimulation of investments into acquisition of the equipment No-Till and Mini-Till;

Area 3. Increase in investments into physical infrastructure and infrastructure of services in the rural zone, including in infrastructure of the agricultural enterprises placed outside settlements

Measure. Support of investments into infrastructure for the agricultural enterprises placed outside settlements.

3. Allocate the Ministry of Agriculture and the food industry in coordination with the Ministry of Finance the right:

1) distributions of fund of subsidizing of agricultural producers for the measures provided in Item 2 of areas 1-3, depending on requests for financial support from agricultural producers including for the purpose of repayment of debts on statements for request of the subsidies confirmed with the final and not cancelled judgments within fund of subsidizing of the agricultural producers mentioned in Item 1 of this Resolution;

2) distributions of financial resources from compensation of subsidies by agricultural producers, receivers of subsidies in 2010-2015 which allowed departures from provisions of the existing regulations, for the purpose of further financing of other requests for support according to the measures provided in Item of 2 areas 1-3 presents of the Resolution;

3) ensuring financing as fee in Fund of grapes and wine according to Item b provisions) parts (3) and parts (12) article 32-3 of the Law No. 57-XVI of March 10, 2006 on grapes and wine.

4. Accept payment for the account of the means provided in Item 1 of this Resolution for not authorized document folders on subsidizing given till October 31, 2014, and for document folders on subsidizing of insurance premiums of the agricultural producers given till December 15, 2014 and unpaid in both cases, till December 31, 2014 owing to not financing at the expense of fund of subsidizing of agricultural producers for 2014. Their authorization and payment will be performed according to Regulations on subsidizing for 2014.

5. Determine that:

since 2016, the agricultural producers owning grape plantings of commodity production, who are not registered in the Grape and wine-making register of the Republic of Moldova will not have the right to receive subsidies from fund of subsidizing of agricultural producers;

since 2016 subsidizings, only grape plantings created since spring of the corresponding year and also the grape plantings with the vintage varieties intended only for production of grape and wine-making products with the protected geographical instructions created according to the specifications approved according to the Law No. 57-XVI of March 10, 2006 on grapes and wine will be subsidized;

since 2016, agricultural producers which pledge fruit apple-tree plantings with seed spacing of trees on hectare from 700 to 1249 pieces will not have the right to subsidizing;

since 2016, the minimum area acceptable for subsidizing of investments into production of vegetables and fruit in glass-covered ground (winter hothouses, sunbeds and tunnels), will constitute 0,1 of hectare.

6. Accept subsidizing of the investments made by freely practicing veterinarians who work at the Law No. 221 basis of October 19, 2007 about veterinary and sanitary activities, according to Items 56-60 of appendix No. 1 to this resolution.

7. Approve:

1) Regulations on procedure for distribution of fund of subsidizing of agricultural producers according to appendix No. 1;

2) the List of risks for which insurance insurance premiums in crop production, gardening, wine growing and livestock production, according to appendix No. 2 are subsidized from fund of subsidizing of agricultural producers for 2015;

3) the List of crops and animal species and birds for whose insurance insurance premiums, according to appendix No. 3 are subsidized from fund of subsidizing of agricultural producers for 2015.

8. Control of execution of this resolution is imposed on the Ministry of Agriculture and the food industry.

Prime Minister

Kirill Gaburich

Countersign: Deputy Prime Minister, Minister of Economic Affairs

Stefan Christoph Brid

Minister of Agriculture and food industry

Ion Sule

Minister of Finance

Anatol Arapu

Appendix No. 1

to the Order of the Government of the Republic of Moldova of June 10, 2015 No. 352

Regulations on procedure for distribution of fund of subsidizing of agricultural producers for 2015

Chapter I. Basic concepts

For the purposes of this provision the used basic concepts have the following values:

1) agricultural activities – production, cultivation or cultivation of agricultural products, and also primary/final processing of agricultural products, milking, cultivation and content of animals for the agricultural purposes or for content of sites in proper agricultural and ecological conditions according to appendix No. 1 to this Provision;

2) the receiver – the applicant of subsidy whose request was positive and approved for payment by the managing director of fund of subsidizing of agricultural producers – intervention and payments Agency in the field of agricultural industry;

3) the house of packaging – the agricultural unit consisting of the refrigerator and additional technical components used in complex or separately when cleaning, washing, sorting and packaging of fresh fruit and vegetables;

4) selection criteria – compulsory provisions which the applicant shall execute to submit the application, and obligatory documents for receipt of free financial aid;

5) doubtful data – the information containing in the documents attached to the request about the application of subsidies which is not true, established during consideration of document folder on subsidizing or additional checks which concerns amount and the quantity of works/property which are subject to subsidizing, the areas of framed plantings, etc.;

6) stock-rearing farm – any livestock object, the construction or the company in the open air authorized in accordance with the established procedure which property consists of animals, rooms, processing equipment, constructions and it is intended for product receipt of animal origin;

7) grant – the non-paid financial or technical contribution provided to the agricultural producer from donors, including foreign when purchasing property (assets);

8) group of producers – the legal entity founded and functioning according to Law No. 312 provisions of December 20, 2013 on groups of agricultural producers and their associations which main goal consists in joint realization of agricultural products of members of group;

9) investment – cost, excluding VAT, material values (assets) enclosed in business activity in the territory of the Republic of Moldova, put in operation according to the conditions and terms provided for each measure for support, the agricultural producers which are subject to financial support from fund of subsidizing according to requirements of this provision;

10) the list of the prohibited agricultural producers – the official document constituted by the body responsible for management of subsidizing of agricultural producers of fund for the purpose of restriction for the period 5 next years access to subsidies of agricultural producers which provided the doubtful subsidies granted for obtaining or allowed violation of other conditions of selection;

11) the rural settlement – villages, communes, including settlements which, according to the Law No. 764-XV of December 27, 2001 on the administrative-territorial device of the Republic of Moldova, have the status of the city in which the number of inhabitants, following the results of the last population census, does not exceed 8500 inhabitants except for of the cities which are the residence of regional councils, the cities and sat down in structure mun. Chisinau, and also the cities as a part of ATO Gagauzia;

12) measure for support – the main direction in agricultural industry chosen and which is financially supported by the state according to the tasks set in programs and documents the politician in agro-industrial area;

13) the payment order – the payment document based on which the transfer of financial support, transfer of the credit, and also confirmation of any payment method allowed in the territory of the republic, except for transactions on exchange of goods (barter), compensation transaction and agreements on concession is performed;

14) preprocessing – set of the transactions executed by the agricultural producer on certain technology within which agricultural products of plant or animal origin are prepared for use as raw materials for different industries of the agrofood industry;

15) final processing – set of the transactions executed by the agricultural producer registered in the rural settlement on certain technology within which agricultural products of plant or animal origin passed all processing stages at the same time their use for ultimate goal for which they were made is possible;

16) the agricultural producer – the physical person performing business activity, the legal entity – commercial societies, irrespective of type of property and form of business, cooperatives and the state companies which perform agricultural activities in the territory of settlements of the republic, except for the cities of Chisinau and Belts;

17) irrigating system – the hydraulic network consisting in complex or separately of pumping points, including accessories (pipes, armature, new connections, etc.), such as geomembrane and geotextiles, for water intake, provided in Items 21, of 123, used for irrigation of the farmlands (including the protected farmlands) bought during 2014-2015 and put in operation since November 1, 2014;

18) the applicant – agricultural producer which performed investment or into the authorized capital of which material values (assets) for implementation of business activity which are subject to support from fund of subsidizing of agricultural producers and which submitted the corresponding application according to measures for support were enclosed in accordance with the established procedure;

19) subsidy – the free financial aid issued from fund of subsidizing of agricultural producers for support of the investments made by agricultural producers which correspond to selection criteria;

20) new agricultural machinery and the equipment – the tractors, combines, other machines and the new traction / towed agricultural equipment provided in Items 48 and 136 of this provision, acquired since November 1, 2014, with year of production not earlier than 2013;

21) the young farmer – the agricultural producer registered in the rural settlement no later than November 1, 2014, the founder and which single managing director are physical persons at the age of 18-35 years at the time of application for support.

Chapter II. Purposes, tasks and principles of providing subsidies

1. The regulations on procedure for distribution of fund of subsidizing of agricultural producers (further – the Provision) establish measures for support from fund of subsidizing of agricultural producers, and also procedure for management of fund for the purpose of providing and guaranteeing correctness of assignment, including the compulsory provisions necessary for receipt of means, selection criteria of receivers, the size of the allocated financial support, procedure for obtaining, check, authorization, accounting of payments.

2. The standard request for providing financial support for each measure separately, the statement under own responsibility for accuracy of the data and the documents submitted by the applicant of subsidy standard acts of installation and commissioning of the investments made according to requirements of this provision the sample of the agreement on providing financial support and other documents affirm the order of the Minister of Agriculture and the food industry.

3. Providing subsidies is performed by intervention and payments Agency in the field of agricultural industry based on requirements of this provision and guarantees transparency in fund management of support of agricultural producers, allocated from the government budget.

4. Fund is used according to measures for support and within the assignments approved by the law on the government budget for the corresponding year and distributed for year depending on their priority.

5. Fund is allocated for ensuring sustainable development of the agrofood sector.

6. Allocation of subsidies is determined:

need of increase in competitiveness of the Moldavian agrofood products in the internal and external markets;

need of ensuring food security of the population of the Republic of Moldova;

need of increase in food security and quality of agrofood products as in the internal, and foreign market;

requirements and obligations for aspirations to the European integration.

7. Assignment of fund pursues achievement of the following purposes:

1) performance improvement and competitiveness of agricultural industry;

2) stimulation of transfer of technologies and services in experience distribution;

3) increase in the income of agricultural producers and decrease in level of poverty;

4) broad involvement of young farmers to initiation and development of agricultural activities in the rural sector;

5) effective use of natural resources and preserving environment;

6) expansion/diversification of access to the foreign markets, including on the markets of the European community.

8. Activities for obtaining, consideration, check, authorization of requests for subsidies and implementation of payments are performed based on the following principles:

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