ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of July 25, 2016 No. 910

About procedure for distribution of fund of subsidizing of agricultural producers for 2016

Based on provisions of article 2 of the Law on the government budget for 2016 No. 154 of July 1, 2016 (The official monitor of the Republic of Moldova, 2016, Art. No. 230-231, 486), 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 realization 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 Financial agreement between the Government of the Republic of Moldova and the European commission about accomplishment of the ENPARD Program Moldova – support of the agricultural industry and development of the rural zone ratified by the Law No. 177 of October 22, 2015 (The official monitor of the Republic of Moldova, 2015, Art. No. 317-323, 576), 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 2016 in the amount of 700 million lei, including 380,8 of one million lei at the expense of the ENPARD Program Moldova – support of agricultural industry and development of 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, subordinated to the Ministry of Agriculture and the food industry.

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

Priority of I. Increase in competitiveness of the agrofood sector due to restructuring and upgrade

Measure 1. Investments into agricultural objects for restructuring and adaptation to standards of the European Union

Submeasure 1.1. Stimulation of investments into production of vegetables and fruit in the closed soil (winter greenhouses, sunbeds, tunnels).

Submeasure 1.2. Stimulation of investments into bookmark, upgrade and raskorchevka of long-term plantings, including grape and fruit plantings.

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

Submeasure 1.4. Stimulation of investments into the equipment and technological updating of livestock farms.

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

Submeasure 1.7. Stimulation of crediting of agricultural producers by commercial banks and non-bank financial institutions.

Submeasure 1.7A Stimulation of the mechanism of risks insurance in agricultural industry.

Measure 2. Investments into conversion and realization of agricultural products

Submeasure 1.6. Stimulation of investments into development of infrastructure of postharvest processing and conversion as follows:

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

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

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

1.6.4. Primary conversion, packaging, chilling, freezing and storage of meat, conversion, packaging and storage of milk, and also analysis of honey;

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

Priority of II. Ensuring steady management of natural resources

Measure 3. Preparation for accomplishment of actions concerning the environment and the rural zone.

Submeasure 2.1. Stimulation of investments into consolidation of farmlands.

Submeasure 2.2. Stimulation of investments for acquisition of the irrigating equipment.

Submeasure 2.3. Stimulation of agricultural producers for compensation of costs for irrigation.

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

Submeasure 2.5. Support of promotion and development of ecological agricultural industry.

Priority of III. 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 4. Improvement and development of rural infrastructure

Measure 5. Consulting services and services in training

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

1) distributions of fund of subsidizing of agricultural producers for measures 1-5, provided in Item 2, 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 taken legal effect judgments within fund of subsidizing of the agricultural producers specified in Item 1 of this Resolution;

2) distributions of financial resources from compensation of subsidies by agricultural producers, receivers of subsidies in 2010-2016 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 2 of this 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 on grapes and wine No. 57-XVI of March 10, 2006 and part (2) article 2 of the Law on the government budget for 2016 for total amount in the amount of 22 456,9 thousand lei.

4. Accept payment for the account of the means provided in Item 1 of this Resolution for:

the authorized and unpaid document folders about subsidizing given till October 31, 2014. Their payment is performed according to requirements of the Regulations on procedure for distribution of fund of the subsidizing of agricultural producers approved by the Order of the Government No. 135 of February 24, 2014;

the authorized and unpaid document folders about subsidizing given till October 31, 2015. Their payment is performed according to requirements of the Regulations on procedure for distribution of fund of the subsidizing of agricultural producers for 2015 approved by the Order of the Government No. 352 of June 10, 2015;

the document folders about subsidizing given till October 31, 2015 and not authorized owing to expenditure of fund of subsidizing of agricultural producers for 2015. Their authorization and payment will be performed according to requirements of the Regulations on procedure for distribution of fund of the subsidizing of agricultural producers for 2015 approved by the Order of the Government No. 352 of June 10, 2015;

the folders about request of financial support submitted according to requirements of the Regulations on procedure for the provision of financial aid of fruit to producers approved by the Order of the Government No. 735 of September 10, 2014, unpaid owing to expenditure of the financial resources allocated according to Law No. 183 provisions of September 28, 2014 on modification and amendments in the Law No. 339 of December 23, 2013 on the government budget for 2014. Their payment is performed according to requirements of the Order of the Government No. 735 of September 10, 2014.

5. Determine that since 2017 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.

6. Approve:

Regulations on procedure for distribution of fund of subsidizing of agricultural producers for 2016, according to appendix No. 1;

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 2016;

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 2016.

7. Control over the implementation of this Resolution is imposed on the Ministry of Agriculture and the food industry.

Prime Minister

Paweê Phillip

Countersign: deputy. Prime Minister, Minister of Economic Affairs

Octavian Kalmyk

Minister of Agriculture and food industry

Eduard Grama

Minister of Finance

Octavian to Armash

 

Appendix No. 1

to the Order of the Government of the Republic of Moldova of July 25, 2016 No. 910

Regulations on procedure for distribution of fund of subsidizing of agricultural producers for 2016

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, 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 on receipt of subsidy which request was considered 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 object consisting of the refrigerator or agricultural warehouse, being in property of the applicant, and the additional technical components used in complex or separately during the cleaning, sink, sorting and packaging of fruit, grapes and vegetables;

4) selection criteria – compulsory provisions to which there shall correspond applicant on receipt of subsidy to submit the application for provision of subsidies, the obligatory and in addition requested documents for each measure for support separately, for the purpose of receipt of free financial aid;

5) doubtful data – the information containing in the documents attached to the request for provision 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 the created plantings, etc.;

6) livestock farm – the agricultural object consisting of animals, constructions, processing equipment, arrangements and special equipment, authorized in accordance with the established procedure, 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) which amount is subtracted from the acceptable amount of investment when calculating subsidy;

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, services (for measures for support 2.1, 2.3, 4), the property which is legally acquired by applicants of subsidies and put in operation according to the conditions and terms provided for each measure for support separately, the agricultural producers which are subject to financial support from Fund of subsidizing according to requirements of this provision;

10) the list of the forbidden 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 of 5 next years of 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 have the status of the city except for of the cities and sat down in structure mun. Chisinau, municipium of Belts, and also cities/municipiums as a part of ATO Gagauzia;

12) the protivogradovy equipment – the system used in complex for protection of long-term plantings against negative consequences of loss of hail, created from protivogradovy grid, columns, anchors, metal cables, elements against flash, and also various materials for fixation, tension, connection and other auxiliary materials for installation and functioning of system, acquired during 2015-2016 and put in operation since November 1, 2015;

13) the equipment on protection against frosts – the system created from the stationary property used in complex, or personal estate (the traction and towed, wind machines, etc.), the long-term plantings intended for protection against negative consequences of early spring frosts, consisting of pumping point, including the equipment (pipes, armature, new connections, etc.), the torches, fans acquired during 2015-2016 and put in operation since November 1, 2015;

14) 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;

15) the payment order – the accounting document based on which the transfer of financial resources, and also confirmation of any payment method allowed in the territory of the republic and corresponding to provisions of the Law No. 114 on payment services and electronic money of September 14, 2012 and the Law on financial accounting No. 113 of April 27, 2007 is performed;

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

17) preprocessing – set of the transactions executed by the agricultural producer on certain technology within which preparation of agricultural products of vegetable or animal origin for use as raw materials for various industries of the agrofood industry is performed;

18) the agricultural producer – the physical person performing business activity, the legal entity – commercial societies, irrespective of type of property and form of business, group of producers, 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;

19) the affiliated companies – the commercial societies, physical persons performing business activity (except for groups of producers), belonging to one and those/same shareholders, persons or commercial societies which do not depend from each other and are united by single management or are operated by the bodies consisting in the most part of the same persons or affiliates of physical person;

20) network of water supply – the network consisting of channels, pipelines or trenches of various procedure, intended for leading of water from source to distribution network on the irrigating site;

21) distribution network – the network consisting of channels, pipelines or trenches of various procedure, intended for leading of water to irrigating sectors;

22) irrigating system – the hydraulic network consisting in complex or separately of pumping points, fertigatsionny stations, including the service equipment (pipes, armature, new connections, etc.), such as geomembrane and geotextiles, for water intake, used for the purpose of irrigation of the farmlands (including the protected farmlands) bought during 2015-2016 and put in operation since November 1, 2015;

23) 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;

24) subsidy – the free and tax-free financial aid provided from fund of subsidizing of agricultural producers for support of the investments made by agricultural producers which correspond to selection criteria;

25) new agricultural machinery and the equipment – the tractors, combines, other machines and the new traction / towed agricultural equipment acquired since November 1, 2015, with year of production not earlier than 2014;

26) the closed soil – special constructions (greenhouses, sunbeds and tunnels) and the parcels of land (open field) equipped with modules, materials for covering and/or installations for creation of artificial microclimate for the purpose of the accelerated production of vegetables during colder periods of year;

27) the young farmer – the agricultural producer registered in the rural settlement, founders/founders and which single managing director is the physical person at the age of 18-35 years at the time of registration of the request for provision of financial support;

28) the female farmer – the agricultural producer registered in the rural settlement which founders/founders and the managing director is women/women.

Chapter II. Purposes, tasks and principles of provision of subsidies

1. The regulations on procedure for distribution of fund of subsidizing of agricultural producers for 2016 (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 provision of 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 performed according to requirements of this provision affirm the order of the Minister of Agriculture and the food industry.

3. Provision of subsidies is performed by intervention and payments Agency in the field of agricultural industry (further – the Agency) according to 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, proceeding from 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;

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