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ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of May 5, 2017 No. 290

About approval of the Regulations on procedure for provision of financial support to agricultural producers for the purpose of reduction of consequences of late spring frosts of 2016

For the purpose of reduction of the caused damage to agricultural producers late spring frosts of 2016 the Government DECIDES:

1. Approve Regulations on procedure for provision of financial support to agricultural producers for the purpose of reduction of consequences of late spring frosts of 2016 it (is applied).

2. To the Ministry of Agriculture and the food industry to prepare offers on allocation of financial resources from intervention fund of the Government within available assignments.

3. To impose control over the implementation of this resolution on the Ministry of Agriculture and the food industry.

Prime Minister

Paweê Phillip

Countersigns:

Minister of Finance

 

Octavian to Armash

 

Approved by the Order of the Government of the Republic of Moldova of May 5, 2017 No. 290

Regulations on procedure for provision of financial support to agricultural producers for the purpose of reduction of consequences of late spring frosts of 2016

I. General provisions

1. The regulations on procedure for provision of financial support to agricultural producers for the purpose of reduction of consequences of late spring frosts of 2016 (further - the Provision) establish procedure for allocation of the financial resources intended for partial compensation of the damage caused by frosts, to agricultural producers and also the compulsory provisions necessary for receipt of support, and procedure for its distribution.

2. In the this provision sense the basic used concepts have the following values:

1) the applicant – agricultural producer which fruit plantings were damaged by late spring frosts;

2) the agricultural producer – the physical person who is engaged in business activity, the legal entity – commercial societies, irrespective of type of property and form of business, and the cooperatives performing agricultural activities in the territory of settlements of the republic;

3) the act of ascertaining – the information on emergency state registered and established by the Commission founded by the order of primar of the settlement;

4) financial support – the irretrievable and tax-free compensation provided to agricultural producers for partial covering of the damage caused by frosts;

5) natural disasters – the late spring frosts registered on April 26-27, 2016.

3. The financial support is provided to the agricultural producers having fruit (seeded and kostochkovy), nut bearing and berry cultures, including strawberry, interventions and payments Agency in the field of agricultural industry (further – the Agency), according to the conditions specified in item 4.

4. Conditions in total for selection of the applicant:

1) to be owner and/or the legal user of farmlands (in sense of the Law No. 198-XV of May 15, 2003 on lease in agricultural industry, the minimum term of lease / free use 3 years at the time of frosts);

2) to own the bank account in national currency (Moldovan leu);

3) to have the fruit plantings damaged by natural disasters:

a) were checked and documented by the local commissions founded based on the order of primar of the settlement;

b) are registered in the summary report constituted by the commissions on documentation founded by the order of the Minister of Agriculture and the food industry published on the web page of the Ministry of Agriculture and food industry (www.maia.gov.md);

c) shall be fructifying, the minimum Ploshchad 0,5 of hectare, pledged according to the project;

d) with the unexpired term of useful functioning according to provisions of the Catalogue of fixed assets and intangible assets approved by the Order of the Government No. 338 of March 21, 2003;

4) the damage rate of plantings shall constitute more than 30%.

5. According to conditions of this provision fruit plantings are not subject to selection:

1) insured according to provisions of the Law No. 243-XV of July 8, 2004 on the subsidized insurance of industrial hazards in agricultural industry;

2) young fruit plantings to the complete introduction in fructification, according to the terms specified in the project of bookmark;

3) with the expired term of useful functioning according to provisions of the Catalogue of fixed assets and intangible assets approved by the Order of the Government No. 338 of March 21, 2003;

4) not having the project of bookmark developed by specialized enterprises;

5) not registered in the Summary report;

6) the companies which are in process of insolvency;

7) the companies included in the List of the forbidden agricultural producers which conducts the Agency.

6. The size of financial support is estimated depending on the damaged area, damage rate, the comparable price for 2015, the lost harvest and payments of the applicant in the government budget, according to formula:

1) the lost harvest (Rc) is calculated according to formula:

Rc = Qs*Sa * (Ga/100),

where:

Qs – average productivity on hectare (q/ha) for 2013, 2014 and 2015:

- for producers which have agricultural areas big or equal 10 hectares, form calculation base data from the statistic reports (the form 29-agr, annually) provided by the applicant to National bureau of statistics;

- data of National bureau of statistics, on each area respectively form for producers which have agricultural areas less than 10 hectares calculation base;

Sa – the damaged area, according to the Summary report;

Ga – damage rate of agricultural object, according to the Summary report (%);

2) the amount of financial support (Sf) is calculated by formula:

Sf = Rc * Pc*Pi*K,

where:

Pc – the comparable price of fruits for 2015 calculated by National bureau of statistics on each type separately. The corresponding price list will be placed on the web page of the Ministry of Agriculture and food industry (www.maia.gov.md);

Pi – coefficient which determines payment of the income tax paid by the applicant for 2014-2015 in total and matters:

Pi = 1 in case taxes are paid and supported by the evidential documents;

Pi = 0 in case taxes are not paid and are not supported by the evidential documents;

K – the coefficient of calculation of financial support making 0,025.

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