Two of the most affected sectors, pig farming and milk, are to benefit from financial support under the temporary European framework. The Ministry of Agriculture estimates a need of over 350 million lei, and the granting of aid depends on the identification of funds and the adoption of certain regulatory acts.
For the dairy sector, support could exceed 50 euros per head of cattle, while for the pig sector, amounts of approximately 12 euros for fattening and a minimum of 13 euros for sows are provided. In parallel, the authorities are preparing to resume the „farmer’s loan” program, which includes interest subsidies and guarantees of 80% of loans.
„There are two sectors that are facing a difficult situation on the market, the pig sector and the milk sector. In both situations, we have prepared a support scheme based on the new European framework, the new Iran framework, which allows member states to support farmers and partially or fully cover the increase in costs generated by the increase in fuel prices, especially diesel.
Within this state aid timeframe, we have prepared two aid schemes, one for the pig sector and one for the milk sector. We have notified the Ministry of Finance of the necessary amounts.
Our calculation shows a need of over 350 million lei for the two sectors. The milk sector could benefit, if we find the necessary amounts with the Ministry of Finance and we can promulgate an emergency ordinance or draft law, depending on the situation. As I told you, at the moment we cannot issue an emergency ordinance.
But, if other regulations are approved, we would come to the aid of farmers, cattle breeders, with an amount of over 50 euros per head of cattle, through this scheme, through this state aid based on the Iran timeframe.
And in the case of the pig sector, with 12 euros for fattening, a minimum of 13 euros for sows. Here we still need to do some calculations, things are not very clear to me yet, but we should increase the amount for sows a little, if we can justify it.
This timeframe is basically based on this principle of the increase in costs generated by the increase in the price of diesel. In the cattle sector, we have an increase and we can demonstrate that we have an increase in costs. In the pig sector, the impact is not so great, so we still have to look for solutions there.
At the same time, we have prepared together a draft emergency ordinance to resume the farmer’s credit, that form of support that was still in force during the Ukraine timeframe.
Here we are basically repeating that form of support through which we provide a subsidy to cover the ROBOR interest, it supports the scheme and the guarantee funds, so we also provide a guarantee of 80% of the loan amount, 80% guarantee through this support scheme.
The maximum limitation provided by the time frame is 50,000 euros or 70% of the total additional costs generated by the increase in the price of diesel.
So there are two options that will be available to the farmer, to choose the option of 50,000 euros or 70% of the total additional costs generated by the fuel”, declared the interim Minister of Agriculture.
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