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LAW REPUBLIC OF MOLDOVA

of December 16, 2016 No. 276

About the principles of subsidizing of development of agricultural industry and the rural zone

(as amended on 27-11-2020)

In view of need of establishment of the comprehensive and single legal base of subsidizing of the agro-industrial sector and development of the rural zone in the Republic of Moldova, supports of domestic agricultural manufacturers and need of adaptation of regulatory framework in the field of agricultural subsidizing to practice of the European Union,

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Subject to regulation

(1) This law establishes the general principles of state policies on encouragement and stimulation of agricultural activities and development of the rural zone, the direction of use of the financial resources intended for development of agricultural industry and the rural zone.

(2) the principles Established by this law are basic and do not deprive the state of the right to pay special attention to development of agricultural industry and improvement of quality of life in the rural zone.

(3) This law does not regulate the principles of business activity, and also the budget taxation system of the Republic of Moldova.

Article 2. Law purpose

(1) This law is designed to promote upgrade of the agro-industrial sector and development of the rural zone by way:

a) increases in competitiveness of the agro-industrial sector by upgrade and restructuring of the market;

b) ensuring steady management of natural resources in agricultural industry;

c) increases in level of living in the rural zone.

(2) For achievement planned in part (1) the purposes the state through the competent authorities supports the government:

a) upgrade of agrofood chain for the purpose of compliance to requirements of the European Union for safety of foodstuff and to quality requirements;

b) simplification for farmers of access to the capital markets, means of production and finished goods;

c) reforming of education system, scientific research and consulting services in the agro-industrial sector and creation of the Agricultural integrated information system;

d) implementation of modern practices of management of agricultural holdings and water resources;

e) implementation of production technologies, friendly environment, ecological products, and also preserving biodiversity;

f) adaptation to climatic changes and mitigation of their consequences for agricultural production;

g) allocation of investments on development of physical infrastructure and infrastructure of services in the rural zone;

h) increase in employment opportunities in nonagricultural spheres and increase in the income in the rural zone;

i) participation of local community in development of the rural zone.

Article 3. Basic concepts

For the purpose of this law the following basic concepts are used in value:

approach of LEADER - method of development of rural communities which assumes involvement of local subjects to development and deployment of strategy of local development and works at basis of such principles as the territorial approach, local partnership, the bottom-up approach integrated and multisectoral actions, innovation, network cooperation and cooperation;

the inspection statement - the document by means of which administrative transaction on establishment on the place of subject to the investment declared in the request for provision of subsidy is fixed;

agricultural activities – production, cultivation or cultivation of agricultural products, and also primary/final processing of agricultural products, milking, cultivation and content of animals for agricultural needs or content of lands in proper agricultural and nature protection conditions;

Intervention and payments agency in the field of agricultural industry – the administrative authority subordinated to the Ministry of Agriculture, regional development and the environment responsible for effective management of National fund of development of agricultural industry and the rural zone, including the financial resources received from partners in development;

the receiver of subsidy – the applicant of subsidy whose request for provision of subsidy positively is assessed and approved for payment by intervention and payments Agency in the field of agricultural industry;

eligibility criterions – condition subsidies, obligatory for applicants;

development of the rural zone - the planned process of steady social, economic, cultural changes, and also the changes of the environment directed to improvement of quality of life in the rural zone;

the female farmer - the agricultural producer registered in the rural settlement, the founder/member (in case of peasant economy) and which managing director is the woman having the corresponding professional skills and qualification and for the first time acting in agricultural enterprise as his managing director;

National fund of development of agricultural industry and the rural zone – set of budgetary funds, and also the means received from the partners in development intended for financing of measures of support;

force majeur circumstances – exclusive circumstances / situations, such, as: death – the single founder if there are no heirs; the natural disaster which struck agricultural holdings; accidental destruction of the agricultural property which is on grounds; the epizooty which seriously affected livestock of the agricultural producer;

grant – the non-paid financial or technical contribution to purchase of property (assets) provided to the agricultural producer by donors, including foreign;

local initiative group (further - the INSTANT) - non-profitable non-profit organization which is created on the basis of the territorial partnership established at the local level between public, civil and entrepreneurial sectors with the status of the legal entity, for the purpose of development and strategy implementation of local development within approach of LEADER and in which any of three sectors cannot possess more than 49 percent of voting powers in case of decision making;

group of producers – group of agricultural producers in sense of the Law on groups of agricultural producers and their associations No. 312 of December 20, 2013;

acceptable investment – the property (assets) enclosed in business activity or in the activities for improvement of quality of life in the rural zone performed in the territory of the Republic of Moldova, put in operation on conditions and in the terms provided on each measure of support, which is subject to financial support from National fund of development of agricultural industry and the rural zone;

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