Economic

Farming Subsidies in Doubt? Romania Reevaluates Budget

The Intervention and Payment Agency for Agriculture (AIPA) assures that it has sufficient financial resources to subsidise farmers.

This assurance comes from the Minister of Agriculture and Food Industry, Vladimir Bolea, following warnings from the Farmers' Force Association that a significant number of farmers could be left without subsidies for applications submitted in 2023. In response, the association has called on the government to increase the allocation for the 2024 subsidy fund. They argue that the remaining 470 million lei in the National Fund for Rural and Agricultural Development (NFARD) is insufficient to cover the total sum required for post-investment subsidy applications.

"AIPA has funds set aside to pay farmers," said Vladimir Bolea. "Currently, we require additional funding to launch the subsidy program for animal weight. However, AIPA has enough resources to process the applications from 2023. We have already submitted a request to the Ministry of Finance for the additional funds."

The Farmers' Force points out that while the 2024 state budget allocates 1.6 billion lei to the subsidy fund, data published by AIPA in early June indicates that 68.44% of the NFARD for 2024 has already been spent. The remaining 470 million lei is not enough to cover all applications for post-investment subsidies. The association emphasises that the existing shortfall is at least 230 million lei and highlights, for the first time, the absence of an increase in the subsidy fund within the draft budget amendments.

The Cabinet of Ministers will re-examine and approve amendments to the 2024 Budget Law during its meeting on Friday, June 21st.

Translation by Iurie Tataru

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