OREANDA-NEWS.  February 01, 2013. The means of the Fund are meant to encourage lending of agricultural producers by commercial banks, agricultural risks insurance, as well as investments in eradication and making of perennial orchards and vineyards, Agriculture and Food Industry Minister Vasile Bumacov informed. Subsidies will also be allotted to growers of vegetables in green houses, investors in purchase of new agricultural machines and equipment, irrigation and anti- hail systems.

As usual, the government is going to encourage equipment and re-equipment of livestock farms, purchases of pedigree cattle and preservation of the gene pool of the livestock and investments in processing and packing post-harvesting facilities. Following consultations with representatives of the Ministry of Agriculture and non-governmental agricultural organizations of Moldova, the government decided to add two new items for subsidies and will encourage consolidations and irrigation of agricultural lands. In particular, farmers will be subsidized if they have consolidated at least 3 land lots through sales/purchase, exchange or donation in 2012-2013.

The subsidy will be calculated as compensation for notarization of alienation contracts, payment of the state duty and registration of the contracts in territorial cadastre units and will make 50% of the value, but not more than 400 leis per each bargain. Besides, the state will refund 50% of electricity and centralized irrigation water supply costs.

The Fund for Subsidizing Agricultural Producers was 400 mln. leis in 2012 and 2011 each. In 2012 servants of the Fund accepted 4698 applications for subsidies. They concluded 4629 contracts and subventions totalled 400 million leis.