{"id":448957,"date":"2020-11-21T14:32:19","date_gmt":"2020-11-21T14:32:19","guid":{"rendered":"https:\/\/www.moldova.org\/en\/?p=448957"},"modified":"2020-12-01T08:34:35","modified_gmt":"2020-12-01T08:34:35","slug":"taking-the-moldovan-agriculture-seriously-financing-during-the-crisis","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/taking-the-moldovan-agriculture-seriously-financing-during-the-crisis\/","title":{"rendered":"Taking the Moldovan agriculture seriously – financing in crisis"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The Parliament of the Republic of Moldova has ratified several financing agreements during this week’s plenary sessions. The agreements were signed with international institutions within projects meant to develop the Moldovan agriculture sectors.<\/p>\n

On November 19, the Financing Agreement between the Republic of Moldova and the International Fund for Agricultural Development (IFAD)<\/strong> was ratified<\/a> in order to carry out the Project “Improvement of capacities for transformation of rural areas “<\/em>.<\/p>\n

The investment project has a total budget that includes about 19 million euros<\/strong> in the form of long-term loan and 5.5 million dollars<\/strong> as a non-refundable grant financed from the Adaptation Fund.<\/p>\n

The goal of this financing agreement is “to ensure a wide-scale development of the economy through providing complementary investments, in order to improve the living standards of Moldova\u2019s rural residents and reduce the poverty level,”<\/em> according to the IFAD Consolidated Programme Implementation Unit official note<\/a>. The project that is about to be carried out within a period of 6 years includes the implementation of adaptive innovations and technologies in order to make businesses from agriculture become more sustainable, more competitive and more attractive for investments.<\/span><\/p>\n

Additionally, during the plenary session<\/a> held on November 20, the lawmakers ratified the Financing Agreement between the Republic of Moldova and the International Development Association<\/strong> – the third additional financing. According to the agreement, Moldova will be offered a loan of about 13.5 million euros<\/strong> for the management of animal by-products within the “Moldova Agriculture Competitiveness Project”.<\/em><\/p>\n

“The development objective of the Agriculture Competitiveness Project for Moldova is to enhance the competitiveness of the agro-food sector by supporting the modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-environmental and sustainable land management practices,”<\/em> it is announced on the project webpage<\/a>.<\/p>\n

The project was approved in May 2012 and lasts until December 2024, having a total cost of 31 million dollars.<\/p>\n

The borrowed funds will be used for the construction of a modern complex for the management of animal by-products and establishment of a comprehensive system for the management of animal by-products. First, an optimal technical solution will be selected, along with conducting a feasibility study. Then, critical infrastructure for establishing a management system of animal by-products is planned to be built.<\/p>\n

The project is also supposed to implement a series of activities related to supporting the agricultural sector and food security, affected by the COVID-19 pandemic, including offering compensation to support sales.<\/p>\n

**<\/p>\n

Agriculture and food processing industry sectors are among the main growth drivers of Moldovan economy. These sectors represent around 18% of the country’s GDP and 42-45% of total exports.<\/span><\/p>\n

Moldova’s annual agricultural production is worth 35-40 billion lei, which generates a revenue of about 4 billion lei to the national budget, according to the analysis<\/a> of economic expert\u00a0Veaceslav Ionita.<\/strong><\/p>\n

60% of the employed population in rural areas is involved in agriculture. About 430 thousand people in villages depend on income from agricultural activities.<\/p>\n

Therefore, agriculture production, food processing and farmers\u2019 incomes are critical areas to support, especially when it comes to the COVID-19 pandemic consequences.<\/p>\n

The National Bureau of Statistics (NBS)<\/strong> data<\/a> showed that, between January and September 2020, the Moldovan agriculture production decreased by 35.5%<\/span>, compared to the same period last year. The most affected by this summer drought was the corn harvest – it decreased by over 71%. Also, the soybean, sunflower and wheat harvest of autumn and spring was reduced by over 46%. The grape harvest decreased by 37%, while the harvest of sugar beet and barley was reduced by 30%.<\/p>\n

Farmers from Moldova who were dissatisfied with the way authorities managed the agriculture crisis resumed their protest in October. More than 30 tractors were lined up<\/a> on one of the national roads leading to Chisinau.<\/p>\n

See also: The agriculture collapse and food crisis \u2013 farmers protest all over the country<\/a><\/span><\/p>\n

They called for for continuation of the VAT refund mechanism in the next 2 years, keeping the VAT rate at the level of 8%, compensations of at least 3 000 lei per hectare for corn and sunflower harvest, revision of the regulations on subsidising interest on loans, refund of excise duty on diesel used in agricultural works and a moratorium on fiscal controls for the entire year 2021.<\/p>\n

The Government of the Republic of Moldova has allocated 200 million lei <\/strong>(about 10 million euros)\u00a0to subsidise the farmers losses for crops that were sown in the fall. Also, Prime Minister Ion Chicu announced<\/a>, at the end of October, that the funds directed to covering farmers’ loss will be increased by 24 million lei.<\/p>\n

Photo: paginadeagricultura.ro<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>The Parliament of the Republic of Moldova has ratified several financing agreements during this week’s plenary sessions. The agreements were signed with international institutions within projects meant to develop the Moldovan agriculture sectors. On November 19, the Financing Agreement between the Republic of Moldova and the International Fund for Agricultural Development (IFAD) was ratified in […]<\/p>\n","protected":false},"author":31,"featured_media":448958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,4,56],"tags":[515,669,381,688,896,35,916,27,608,233],"class_list":["post-448957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-society","category-reportaje","tag-agreement","tag-agriculture","tag-crisis","tag-data","tag-financing","tag-important","tag-loss","tag-moldova","tag-pandemic","tag-parliament"],"content_social_share":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The Parliament of the Republic of Moldova has ratified several financing agreements during this week’s plenary sessions. The agreements were signed with international institutions within projects meant to develop the Moldovan agriculture sectors.<\/p>\n

On November 19, the Financing Agreement between the Republic of Moldova and the International Fund for Agricultural Development (IFAD)<\/strong> was ratified<\/a> in order to carry out the Project “Improvement of capacities for transformation of rural areas “<\/em>.<\/p>\n

The investment project has a total budget that includes about 19 million euros<\/strong> in the form of long-term loan and 5.5 million dollars<\/strong> as a non-refundable grant financed from the Adaptation Fund.<\/p>\n

The goal of this financing agreement is “to ensure a wide-scale development of the economy through providing complementary investments, in order to improve the living standards of Moldova\u2019s rural residents and reduce the poverty level,”<\/em> according to the IFAD Consolidated Programme Implementation Unit official note<\/a>. The project that is about to be carried out within a period of 6 years includes the implementation of adaptive innovations and technologies in order to make businesses from agriculture become more sustainable, more competitive and more attractive for investments.<\/span><\/p>\n

Additionally, during the plenary session<\/a> held on November 20, the lawmakers ratified the Financing Agreement between the Republic of Moldova and the International Development Association<\/strong> – the third additional financing. According to the agreement, Moldova will be offered a loan of about 13.5 million euros<\/strong> for the management of animal by-products within the “Moldova Agriculture Competitiveness Project”.<\/em><\/p>\n

“The development objective of the Agriculture Competitiveness Project for Moldova is to enhance the competitiveness of the agro-food sector by supporting the modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-environmental and sustainable land management practices,”<\/em> it is announced on the project webpage<\/a>.<\/p>\n

The project was approved in May 2012 and lasts until December 2024, having a total cost of 31 million dollars.<\/p>\n

The borrowed funds will be used for the construction of a modern complex for the management of animal by-products and establishment of a comprehensive system for the management of animal by-products. First, an optimal technical solution will be selected, along with conducting a feasibility study. Then, critical infrastructure for establishing a management system of animal by-products is planned to be built.<\/p>\n

The project is also supposed to implement a series of activities related to supporting the agricultural sector and food security, affected by the COVID-19 pandemic, including offering compensation to support sales.<\/p>\n

**<\/p>\n

Agriculture and food processing industry sectors are among the main growth drivers of Moldovan economy. These sectors represent around 18% of the country’s GDP and 42-45% of total exports.<\/span><\/p>\n

Moldova’s annual agricultural production is worth 35-40 billion lei, which generates a revenue of about 4 billion lei to the national budget, according to the analysis<\/a> of economic expert\u00a0Veaceslav Ionita.<\/strong><\/p>\n

60% of the employed population in rural areas is involved in agriculture. About 430 thousand people in villages depend on income from agricultural activities.<\/p>\n

Therefore, agriculture production, food processing and farmers\u2019 incomes are critical areas to support, especially when it comes to the COVID-19 pandemic consequences.<\/p>\n

The National Bureau of Statistics (NBS)<\/strong> data<\/a> showed that, between January and September 2020, the Moldovan agriculture production decreased by 35.5%<\/span>, compared to the same period last year. The most affected by this summer drought was the corn harvest – it decreased by over 71%. Also, the soybean, sunflower and wheat harvest of autumn and spring was reduced by over 46%. The grape harvest decreased by 37%, while the harvest of sugar beet and barley was reduced by 30%.<\/p>\n

Farmers from Moldova who were dissatisfied with the way authorities managed the agriculture crisis resumed their protest in October. More than 30 tractors were lined up<\/a> on one of the national roads leading to Chisinau.<\/p>\n

See also: The agriculture collapse and food crisis \u2013 farmers protest all over the country<\/a><\/span><\/p>\n

They called for for continuation of the VAT refund mechanism in the next 2 years, keeping the VAT rate at the level of 8%, compensations of at least 3 000 lei per hectare for corn and sunflower harvest, revision of the regulations on subsidising interest on loans, refund of excise duty on diesel used in agricultural works and a moratorium on fiscal controls for the entire year 2021.<\/p>\n

The Government of the Republic of Moldova has allocated 200 million lei <\/strong>(about 10 million euros)\u00a0to subsidise the farmers losses for crops that were sown in the fall. Also, Prime Minister Ion Chicu announced<\/a>, at the end of October, that the funds directed to covering farmers’ loss will be increased by 24 million lei.<\/p>\n

Photo: paginadeagricultura.ro<\/p>\n

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